Pedro De Freitas Cedeno 7/24/23 Pedro De Freitas Cedeno 7/24/23

AI a Threat to Personal Training.

The world of Artificial Intelligence (AI) has evolved over the last five years into a remarkable tool that is seen and used in just about every area of business and personal life. Today, every industry faces the harsh reality, that this tool can lead to the extinction of the human workforce and threaten the future existence of business as we know it. In the fitness industry, the use of AI technology has become common and rather significant to fitness businesses of all sizes. However, AI's implications on the future of the fitness industry are both significantly positive and negative. As the world of AI evolves, we look towards the future and explore its significance in fitness. That being said there is still the looming question of whether your next fitness coach will be a robot. Today, we will dive into our perspective on the topic.

The Benefits of AI in Today's Fitness Industry

Over the last two years, the use of AI technology in the fitness industry has grown. The explosion in the use of AI technology has positioned many in the industry to reap the benefits of its use. The most resourceful use of AI technology in the fitness industry is membership sales where revenue potentials are generally the focus and lead generation is the most critical.

AI is best used in sales to analyze data. Implementing this technology can help fitness businesses pivot their marketing strategies quickly. By analyzing data on member behavior, member preferences, and engagement, companies can create personalized targeted campaigns used to solicit new memberships which increases the potential for membership revenue. Apart from the aspect of increasing membership revenue, the use of AI also influences the approach taken to enhance retention by providing evolving member data in shorter periods of time. This information is used to target niche markets and marketing efforts across markets where the benefits of membership revenue are the focus. Every business prefers New Business Revenue (NBR) as it signifies strong outreach and market penetration.

If you are running a fitness facility, the main profit marker is personal training. As AI technology improves and starts to revolutionize the industry, personal training departments and businesses will find themselves relying on data collected from existing members and consumers in order to learn consumer behaviors and adapt training programs to maximize profits. AI in this sense also helps fitness businesses convert personal training technology into major sources of revenue by creating new connections with existing and potential clients. It makes for easier personal training options. This is the wave of the future, as fitness businesses develop virtual trainers that will cost significantly less to maintain and operate than a physical trainer. The revenue potential has huge implications for future growth.

AI's Threat to Personal Trainers and Fitness Coaches

During the COVID-19 pandemic, virtual training became the only way to coach and train clients. It was a new way to interact with clients and it challenged the way fitness gyms handled personal training. Many believed that once gyms and fitness centers returned to normal that many would return to training in person. We discovered quickly that this was simply not the case and discovered that it would become the new way of life for the masses of fitness enthusiasts and professionals. This shift in the way we delivered training services, in my opinion, was the birth of the fitness industry AI revolution.

As virtual fitness trends exploded, fitness business owners and industry leaders began exploring more options that would make fitness and personal training services both accessible and available digitally. It was around this time that we saw the emergence of AI-driven apps and platforms like Mirror by Lululemon and more functional products like Tonal.

With the existence and further development of these technologies, having a physical personal trainer looks like an old way of doing things. For the average training client, the reason why they hired a personal trainer in the first place was to deliver a personal experience that would get them to their goals and provide an outlet for a social connection. Instead, the experience was not always so personal as the clients find themselves dealing with moody trainers, personality mismatch, and trainers that no-show for appointments. Why would a client not opt in for a more tailored experience?

This is exactly what these apps and platforms provide. Self-programmed AI-generated virtual trainers providing training and feedback. The energy in each session is always high, and the personality issues are non-existent. Trainers are never late and client results are almost guaranteed, granted that the work is put in. So why not? This is exactly why trainers must stay relevant and favorable. Will there be an obsoletion of personal trainers within the next five years? The answer is probably not. There will always be a need for physical personal trainers to coach and correct clients' form and assist with program design. With that in mind, there is no debating the fact that a physical personal trainer can deliver more than a virtual training app. Although it may seem as though AI-driven apps and platforms are taking over the reality is that there is no comparable replacement for a human-to-human "personal" training session.

How to Stay Relevant and Ahead of the AI-Revolution

There is a really simple solution for personal trainers and coaches to stay relevant; personal and professional development being the first, and second maintaining continuing education for growth and relevancy. If personal trainers and coaches combine these two elements together, they will become ever more so relevant than technology. This somewhat resembles the battle of the worlds or a scene out of War of the Worlds where humans fight to maintain their existence over technology advancements they developed.

In conclusion, although it may seem as though that personal trainers and coaches are on the verge of extinction, the fact is that they are actually in a position to become the forerunners to the success of the technology developed by trainers and coaches themselves. There are many areas of opportunity if used correctly for both trainer and AI to exist. The question is are you ready to take advantage of your position within the AI revolution.

We would love to get your feedback and suggestions. If there are specific topics that you would like us to write about, write to us at FitLife X Blog.

Pedro De Freitas Cedeno 7/12/23 Pedro De Freitas Cedeno 7/12/23

Why Employees Leave Companies.

Employee retention is crucial for fitness companies, as it affects customer satisfaction, reputation, revenue, and competitive advantage. However, most of the retention issues are due to various factors such as low pay, high pressure, lack of support, or poor management. In this article, we will discuss some of the best practices and strategies that fitness businesses can use to reduce employee turnover and increase employee engagement and loyalty.

One of the greatest challenges that most fitness companies face is employee retention. The fitness industry has struggled for many years in this area of retention with Personal Trainers having the highest turnover rates. It has been reported that the industry has an 80% annual turnover of personal trainers with sales and support staff having a 60% annual turnover. Learning why attrition occurs in the industry is important to understanding how to fix this major problem.

The Bad Boss - Your Greatest Loss

That’s right you guessed it right. The top reason employees report as their main justification for leaving companies is because of “The Bad Boss”. When employees develop poor relationships with supervisors and managers they have been more likely to quit than those who have developed a healthy respectful and supportive relationships with leaders who have been charged with the responsibility to manage these employees. Bad bosses create toxic workplace environments. They thrive on micromanagement managing styles and are critical of employees. These managers frequently ignore employees and fail to provide the necessary feedback and guidance that employees require to improve and develop into great leaders. Rather than presenting opportunities for growth these leaders steal opportunities.

So, how do we address the issue of “The Bad Boss”? How do we improve the quality of our workplace environments?

Here are a few of the solutions that we found that works to help identify the root of the employee attrition issues:

Listen to Your Employees - Take inventory of the things that your employees are saying about your appointed managers and supervisors. Listening to these people, you may find that there are some common denominators which can help you address the behaviors and adjust the environment to benefit the employees and the company rather than to stroke the ego of an over zealous manager.
Conduct Development Meetings - Hosting individualized meetings with your employees once a month will help you identify the challenges that they may be dealing with in the workplace. It will give you with the opportunity to develop a relationship with the employee which will help you take the appropriate actions to improve the workplace quality.
Provide Managers with Quality Training - The quality of the training received by managers and supervisors can affect the way that they address employees and issues. Providing your managers with sufficient training will help you avoid these issue all together and support a more productive workplace. In short, you reduce your liabilities significantly by investing into your managers.

Lack of Benefits and Compensation

The second reason why employees feel the need to leave companies is when they feel under valued and under compensated. When employees feel this way they look for opportunities elsewhere. When these employees leave they usually leave suddenly without notice. Depending on the type of business, this can be very crucial to your operations. In fitness, this is particularly true when you have employees who may have covered shifts that present issues with coverage. One emerging theme that we have seen across all industry’s has been the concept of silent quitting by employees. Silent culture has led to many issues for fitness company owners and have actually caused many to lose revenue.

Since retention is the key to success in business, here is our suggestions to avoid attrition in this area;

Incentivize Your Employees - We acknowledge that fact that most companies reduce cost by reducing benefits which is generally a good idea. However, in the absence of these benefit options providing employees with other incentives such as paid days off, vacation bonuses, travel expense reimbursement, and health savings options all add value to the competitive benefits market. Remember that most, people work for “something” and it is your job to identify and provide it.
Reappropriate Funds - Repurposing money for the purpose of employee pay incentives are another benefit. Revising pay structures to benefit not just the company, but the employee can be very beneficial. If your current pay structure is based on hourly and commission pay, it may be a great idea to provide a sales bonus that guarantees to give the employee a bit more financial surety. Remember the financial health of your employees is just as important as the financial health of the company.
Expense Reimbursement - Reimbursing your employees for the cost of gas, food and other miscellaneous items may give employees another incentive to consider when considering an employer shift. It is important to always ensure that your employees are first in everything that you do.

Some other things that can enhance the employee experience would be membership perks for friends and family, flexible schedules, discounts on merchandise and services, and free memberships.

Wrong Culture - Leads to New Culture

Another reason why employees leave companies is culture. When the employees cultural expectations and views do not align with that of the company, there will more than likely always be a clash of views and expectations. For this reason and many more, employees generally find it best to quit positions in company’s where there exist conflicting views and go to those that align with their ideals. To counter this rather negative aspect of employee retention, fitness companies should always get ahead of the curve by ensuring that they are consistently creating a positive environment for employees and customers which fosters an inclusive culture and promotes collaboration, communication and innovation.

Some of the other points to remember that influence the employee experience are:

Employees feel overworked
Employees don’t feel valued
Scope and nature of work changes
Good employees leave

Fitness leaders and owners can significantly impact their business and its successes by placing their employees at the center of their business. Although we acknowledge that the goal is to maximize profit, we also recognize that potential correlates to profit. If we tap into the wells of potential through our most valuable assets our employees and people, we will find that there is so much more to gain in profit and overall revenue. Taking a People-Centric approach to your fitness business will give you the leverage you need to remain relevant and retain employees.

Pedro De Freitas Cedeno 7/10/23 Pedro De Freitas Cedeno 7/10/23

Equinox Fitness Maintains it’s Excellence.

Since September, 1991 Equinox has been serving the fitness community with their luxury fitness clubs. Opening its first club on New York City's Upper West Side, Equinox has since become a international brand spanning over two continents. The company is known for its luxurious facility design and its exceptional service. Equinox member base hails from the ranks of the rich and famous to those in big business. We visited several of the company's clubs in New York City over the past two months. Here is what we discovered and what we suggest as we move forward in our club discovery series.

EQUINOX FITNESS - NEW YORK CITY

On our visits to Equinox we evaluated the fitness clubs in several categories. Those categories were as follows:

Service
Facility and Operations
Price and Accessibility

We rate fitness facilities by giving each facility a score in each category based on a scale ranging from 0-10. The totals of all categories are then calculated to give us a final score. Here are our category findings.

MEMBER SERVICE - 8

It is nothing less than fair to say that in this category, the Equinox standard is always in play. Upon entering each club, the front desk employees who are all a part of the "Greet Team" welcomes each guest into the club with a smile and a very welcoming greeting. We observed that every member was greeted. As you continue into the club, it becomes evident why Equinox is the choice of so many of those in the upper echelon of business and fitness.

As you enter into the locker rooms, the crews of locker room attendants that are stationed in the locker rooms to assist members greet members and are ready to offer service as soon as you walk through the doors. The personal trainers who are assigned to the floor are also very friendly and assistive as they greet members and help those members who require assistance or those who may ask for assistance. We observed nothing but professionalism and service from the time we entered to the time we left. This was not just present at one location however, this was present at all locations which is why we feel that Equinox has a brand standard which surpasses most in this category.

RECOMMENDATIONS

Membership sales should be more engaging with the general member base. If there are more relationships there will be more memberships sold and more revenue generated.
Trainer engagement. Trainers should be more engaged with members. Although most of the training staff does engage the member base there could be better trainer to member engagement service at all clubs. Presence and visibility is also key which is something that is missing at some locations.
Contracts. Although contractual agreements generally work well in the grand scheme of things by increasing member acquisition and retention reducing attrition, this can be a major "buyers concern". Most people are not into commitments as before, that being said we suggest instead of long term contracts give buyers an option of two terms, a short and long. This will empower you more by gaining buyer confidence and loyalty for the long term not just short.

FACILITY OPERATIONS - 8

If there is one thing that we noticed at every Equinox is the "brand standard" which is consistently maintained across markets. At the clubs that we visited, every piece of equipment was in working order and clean. The variety in each location was a bit different, however, we expected that this would be the case as each area has a different demographic of users which influences the outfitting of clubs individually. The locker rooms and wet area amenities were also very well maintained and the "brand standard" was once again observed. The stall areas were impeccably clean, with no odors present. The showers were all clean and welcoming with no visible presence of any mold or mildew. All receptacles were stocked with all body items (body gel, shampoo, conditioner, and face wash) in every stall. There were a few things that we did observe that we did feel could improve. Most of which were related to equipment brand choice, and hours at which clubs close at some locations. Overall, facility operations at Equinox is nothing less than exceptional.

RECOMMENDATIONS

Consider returning some of the clubs to pre-covid operation hours. Although most clubs have returned back to normal, several still are in the shadows and this can be a matter of convenience which translates into a loss in potential membership revenue.
Consider updating some of the lounge area furniture at some of the clubs. Although these accommodations are rather comfortable in all clubs, esthetically some of these items could be updated to reflect a more modern Equinox experience.

PRICE AND ACCESSIBILITY - 6

In this category, we considered the price of each membership class and the accessibility that each membership access grants. We also evaluated the number of clubs available to each member in each access class. When it comes down to price, Equinox most certainly sits on top of the pack as having the most expensive access memberships yet. They offer four tiers of membership access;

Single Location - Access to one club location. This is usually the club of initiation or joining.
All Access - Access to all clubs within the United States except those clubs which are considered destination clubs.
Destination Access - Access to all clubs where ever there is an Equinox globally except those clubs which are considered destination two clubs (i.e. Hudson Yards and Hamptons X).
Destination Access w/ Hudson Yards - Access to all clubs where ever there is an Equinox globally including all clubs considered destination two (i.e. Hudson Yards and Hamptons X).

Each of the above membership offerings does have its perks and benefits, however, from a price perspective, we believe that these options are rather on the higher side. Although we acknowledge that Equinox does have a very specific niche market and target client base, we also in the same believe that there are many prospective memberships being left on the table.

Here are the prices of memberships at Equinox:

Single Club Access - $179.00 - $220.00 Per Month (Price varies by home club location)
All Access - $300.00 Per Month
Destination - $337.00 Per Month
Destination w/ Hudson Yards - $395.00 Per Month

There are only two other fitness facilities which we visited that compete with Equinox when it comes to prices; the first is Lifetime Health & Fitness Center and Fitometry Health Club. Both of these facilities are catered to a niche consumer in the same. We do think that although, Equinox does have a brand power in its name and service offering, we do think that the prices can be a deciding factors for many.

RECOMMENDATIONS

Consider a small price reduction to gain a larger member base. Although we understand the marketing behind higher pricing, we do believe that there is a huge untapped market of opportunity facing the company. Providing a slight pricing reduction can help with long term retention and increase acquisitions of quality memberships for a sustainable long term.
Consider being "Flash" promotional periods in which you provide value based membership and personal training options. A "Flash" promotional period may only last a day or two however, it is generally accompanied with some restrictions and immediate call to action.

OVERALL SCORE - 22 | AFMG RATING - B+

Equinox is most certainly one of a kind. The company ranks "B", and is our luxury brand pick for service and facility quality. Although, in the area of pricing Equinox grades lower than desired, the current price point influences opportunity for membership growth and member acquisition. Overall we enjoyed Equinox and truly believe that this brand will continue to be a major name in fitness for many years to come.

Pedro De Freitas Cedeno 7/4/23 Pedro De Freitas Cedeno 7/4/23

24 Hour Fitness Slowly Rises Back to the Top.

During the month of June, 2023 we visited three 24 Hour Fitness clubs. The clubs we visited were located in Englewood Cliffs, Paramus and Ramsey. These clubs were all located in Bergen County, New Jersey. Overall 24 Hour Fitness scored relatively well.

Over the last few weeks we have been visiting several health club facilities and rating them in three key areas:

Customer Service
Facility Appearance and Cleanliness
Price and Availability

We rate these facilities by giving each facility an individual score in each category based on a scale ranging from 0-10. The totals are then calculated to give us the final score.

The health clubs we visited were Equinox, 24 Hour Fitness, Lafitness, Lifetime Health & Fitness Center, Jersey Barbell and Planet Fitness. The purpose of our visits to these facilities were not to highlight any of the negatives, however, we visited these facilities to help provide feedback that would help these companies not only improve their business operations, by increasing memberships, but by helping them find opportunities for revenue and expansion growth.

To kick things off here we start with 24 Hour Fitness. The clubs we visited were located in New Jersey. Here is what we found at 24 Hour Fitness and our recommendations based on our experience.

24 HOUR FITNESS - NORTH NEW JERSEY

CUSTOMER SERVICE - 4

In this category at each club that we visited, the staff was relatively friendly and welcoming. Although, we were greeted after we entered, we found that the front desk associates were not as attentive as we expected. There were employees at each location engaged in activities on their cell-phones, employees not present at the front desk and employees engaged in side conversations. Although we found these points to be a factor in the overall score its impact on the overall service score was minimal. Where we found customer service to be an impactful factor was with the responses we received from some of the staff regarding some of the facility issues we discovered. The employees responses were the most concerning as they didn't seem to care much. Overall, our service experience was average.

RECOMMENDATIONS

Better club staff training in the areas of service and team leadership.
Better club staff hiring selection process.
Have a supervisor available every shift.
Prescribe pre-written closing scripts for public announcement. Require that employees read the closing scripts exactly the way it is written. Sets a standard.
Require front desk and all available staff to conduct and participate Team Cleans throughout their shifts to increase floor presence.

FACILITY APPEARANCE AND CLEANLINESS - 4

Now let's take a look at the facility appearance and its overall cleanliness. This might be the one area in which there seems to be the most struggle. Walking into the clubs we visited, most of the appearance of the clubs looks good, however as we make our way onto the main floor and enter into the locker rooms, we find that there is room for serious improvement. Overall, we see this as being a great area of opportunity for 24 Hour Fitness.

RECOMMENDATIONS

Increase the flow of light into the facility. Lighting can improve mood and can increase club friendliness which can improve membership acquisitions and retention.
Floor maintenance is key to retention. Maintaining the floor equipment in an orderly fashion is important to retain members. Using your training staff to maintain the floor is one way to ensure that the club meets the set standard.
Cross train staff to perform minor equipment maintenance or hire someone for that purpose. This will ensure that minor equipment issues are addressed and also ensure that machines are always to standards.
Place more emphasis on operations and have occasional external audits and inspections to help.

PRICE AND AVAILABILITY - 7

In this category, the company excels the most in comparison to all competitors. 24 Hour Fitness offers three membership offerings:

Platinum Access - The top tier membership which grants access to all 24 Hour Fitness Clubs in all territories. Membership includes enhanced benefits and features like, 2 free buddy passes, and national club access.
National Access - The second tier membership which grants access to all clubs nationally. This membership does not include the buddy pass.
Gold Access - The lowest tier membership which grants access to regional clubs. Regional clubs are based on home club. Buddy passes are not included in this membership.

In the New York City Metro area, there are twelve 24 Hour Fitness clubs all located within a 15 mile radius of each other. Based on current pricing 24 Hour Fitness offers memberships ranging from $41.99 to $56.99 monthly access and from $287.88 to $323.88 yearly access paid in full.

RECOMMENDATIONS

Although these prices are competitive and meets the current industry trends, having more locations within the North Jersey areas can help justify these prices and increase membership and revenue.
Open smaller studios to service members who maybe seeking a higher quality experience and limit access to an additional fee.
With these prices, consider eliminating annual fees as these fees are unjustifiable under the current conditions of clubs and with access. One would argue that these fees would help with new club operations however, a consideration may be to eliminate the fee in exchange for a higher quality experience.
Opening 24 hours daily is a costly business. We suggest rebranding the name and focusing on ways to extend operations hours. Closing facilities one to two hours later than local competitors would invite opportunity for membership acquisition and growth.
Although there are guest who may be comfortable with poorly maintained locker rooms, the majority of members prefer a clean and well maintain private area. We suggest improving the quality of locker rooms and restrooms. Upgrades in these areas can and will provide greater opportunity to increase sales.

OVERALL SCORE - 15 | AFMG RATING - C

Although 24 Hour Fitness ranks "C", we recommend them as one of our picks for those people seeking out a great workout facility. The company has gone through several years of struggles, as did most fitness chains, however, they are slowly on their way back to the top. With steady hands and open ears, they will excel themselves back to the top. If 24 Hour Fitness listens to the general consensus of its members, guest and other professionals in the business, gather information on how they can further improve, we believe the company could be in a new version of the brand it was several years ago.

We support 24 Hour Fitness mission and hope that the feedback that we have provided helps improve both quantity and quality.

Pedro De Freitas Cedeno 6/11/23 Pedro De Freitas Cedeno 6/11/23

People-Centric Fitness - A New Approach to Growth

The ﬁtness industry is a highly competitive and dynamic market, where customer expectations and preferences are constantly evolving. To succeed, gyms and ﬁtness companies need to differentiate themselves from their rivals and create loyal and satisﬁed customers.

The fitness industry is a highly competitive and dynamic market, where customer expectations and preferences are constantly evolving. To succeed in this environment, fitness companies need to differentiate themselves from their rivals and create loyal and satisﬁed customers. One of the most effective ways to achieve this is by taking a people-centric approach, which means putting people at the heart of everything they do.

A people-centric approach is not only about providing excellent customer service, but also about creating a culture and a strategy that values the happiness and well-being of employees, customers, and partners. It is about understanding the needs, wants, and motivations of people, and designing products, services, and experiences that meet them. It is about fostering a sense of belonging, trust, and engagement among people, and empowering them to achieve their goals and potential.

The Benefits of a People-Centric Approach

Taking a people-centric approach can bring many benefits to fitness companies, here are a few:

Increased customer loyalty and retention: By providing personalized, customized, and engaging fitness experiences that match customer goals and interests, fitness companies can create strong emotional connections with their customers and increase their satisfaction and loyalty. Customers who feel valued and cared for are more likely to stay with the company, recommend it to others, and spend more on its products and services.
Enhanced employee performance and retention: By creating a culture where employees feel valued, respected, and supported, fitness companies can boost their morale, motivation, and productivity. Employees who feel happy and fulfilled at work are more likely to perform well, stay with the company, and advocate for it. They are also more likely to deliver high-quality service to customers and create positive word-of-mouth.

The Challenges of a People-Centric Approach

Taking a people-centric approach is not easy or straightforward. It requires a lot of commitment, investment, and alignment from the leaders and managers of fitness companies. Some of the challenges they may face include:

Balancing the needs of different people: Taking a people-centric approach means considering how different people want to work and how to inspire them to do their work well. It also means balancing the needs and expectations of employees, customers, partners, and shareholders, and ﬁnding ways to create value for all of them. This can be difﬁcult and complex, as different people may have conﬂicting or competing interests or preferences.
Creating a culture of diversity, inclusion, and collaboration: Taking a people-centric approach means creating a culture where diversity, inclusion, and collaboration are valued and celebrated. It also means challenging the traditional definitions of diversity and embracing and fostering unique perspectives, experiences, contributions, and thoughts. This can be hard and uncomfortable, as it requires changing mindsets, behaviors, and norms that may be ingrained in the company’s history, structure, or policies. It also requires addressing biases, stereotypes, or prejudices that may exist among people.

The fitness industry is undergoing a significant transformation that is reshaping the competitive landscape and consumer behavior. Fitness businesses that want to grow their business and stay ahead of the curve need to take a people-centric approach, which means putting people at the heart of everything they do.