Health Club Marketing News……Keep Your Members Coming All Summer Long!

There is never enough time for Terry Dezzutti, the COO of Merritt Athletic Clubs. Since coming on in 1996, Dezzutti, 55, has spent all his energy taking the already successful club in the Baltimore area even higher.

How has he done so?

It’s been a long ride that is just now reaching the end of its destination — to be a five-star health and fitness club. To reach such a prestigious goal, Dezzutti has had to think outside the box and do things with his clubs that both reflect the Baltimore market, and separate them from other clubs.

Welcome to the Nightlife

Like many clubs in the summer, Merritt Athletic Clubs were struggling to entice members to its clubs. Members wanted to be outside in the nice weather, walking around a warm vibrant city.

According to Dezzutti, Baltimore is the type of community that thrives on an active social scene. Not only is it assisted by Johns Hopkins University, but they also play home to the Baltimore Ravens, Baltimore Orioles, and a multitude of waterways for boating and water sports.

Pools were thriving in the daytime and bars into the night. Dezzutti took notice and decided to implement a combination.
It might be odd to think about a health and fitness club being associated with a bar, but more commonly the two are going hand-in-hand. To help summer attendance, Dezzutti decided to implement outdoor swim facilities.

The facilities gave members a place to socialize during the day and cool off during the hot summer months. “The summers used to be dead for us, and six or seven years ago we decided we wanted to be the place to be,” Dezzutti said. “Last year we built our first wave pool and it’s been a big wow. Our retention levels have stopped falling and sales are up.”

They’ve continually added more pools and social amenities. “At our Ford Avenue club, last year we built a pool bar and this year we are building a sun deck around the pool,” he said. “As that becomes more social, we have DJs and people hanging out all day playing beer pong and water polo, and meeting new friends.”

At their club in Canton, on Saturday night, they give the pool area a complete makeover. They turn the club into a Miami South Beach nightclub referred to as Aqua. For members the entrance is free, but it’s $10 for everyone else.

The club has a liquor license and brings in local DJs to spin until 2 a.m. “We use a lot of lighting and music, and it becomes a night club. That becomes a great source of lead generation,” Dezzutti said. “That gets us out of the realm of a regular health club chain in the summer.”

Dezzutti said the nightclub has been in operation for about six years. “It took off from the very beginning,” he said. In the beginning, the nightclub was driving in traffic of over 1,000 people a night. Over the past couple of years the numbers have barely dwindled to about 800 people due to direct competition from other local night clubs.

Above: Merritt Athletic Clubs COO Terry Dezzutti interviewed by Club Solutions Magazine Editor Tyler Montgomery

Everyone Gets Results

It’s safe to say that the vast majority of clubs are in business to get members results. Merritt Athletic Clubs take that responsibility extremely serious.

Once a person becomes a member of Merritt Athletic Clubs, they are inundated with the Results Program. “It’s unique in our market,” Dezzutti said. “When you join you have the ability to opt into this program. You have to show up twice a week and you have to initially meet with a health advisor.

“In that six weeks, if they don’t see results, we give them their money back. Initially, we test their BMI, thigh measurement and cholesterol. At the end of the six weeks, if we haven’t lowered one of those three things, they will get a full refund.”

Dezzutti feels that this program helps new members get involved and keeps them motivated. “Once they get involved in the program, they will get into a routine and start to like exercising,” he explained.

Getting new members results is just the first step. Merritt then transitions its focus to the kids. It has teamed up with the famous Olympic swimmer Michael Phelps.

Phelps had one aquatic academy in Baltimore, already. Developing the partnership gave members at Merritt more locations to train. With the inclusion of Johns Hopkins University in Baltimore — a top two, Division III swim club — swimming is a major competitive sport. Therefore, the partnership with Phelps has enhanced Merritt’s reach within the aquatic market.

“When we met with him, we had several swimming facilities already, and we discussed with him to become a spokesperson for our facilities,” Dezzutti said. “We reached an agreement and now we are using his protocols and practices as part of our system.

“It helps with community awareness. People know the work ethic that he has and we are using that to inspire kids to come in and start exercising.”

Still Attracting Members

Group X does a lot for clubs all across the country, and Merritt Athletic Clubs are no exception. “We’ve made a major investment over the past five years with Les Mills,” Dezzutti said. “I would say they do such a great job of choreographing the music and changing the programs that it inspires everybody. Now we are in the process of expanding all of our rooms and adding music and light fixtures to become more of an entertainment value while they are in there.”

There are ups and downs to installing extra lights and audio to boost the Group X experience. Dezzutti said one woman complained that she became dizzy due to the lights spinning. However, out of the vast majority of club members that participate in Merritt’s Group X, she has been the only complaint.

“People seem to like it because of the entertainment value,” he said. “We’ve also seen Group X change in other areas. Personal training for example, has turned into groups of three to five people because it saves time and money. For people who are looking to workout quickly, we’ve put in these fast track circuits. There are trainers that put members through machines and they get a good workout in half an hour as part of their membership. We are looking at obstacle courses and how we can incorporate those in the future.”

Group X is continually changing at Merritt. “People need a friend, they need a buddy, and Group X gives them that opportunity,” Dezzutti said. “When you have someone that pushes you every day, you show up and you get results.

“In the future people will be doing classes for specific body types and specific ages. You’ll see more seniors working on balance classes with balance boards to get through their daily life.”

However, to simultaneously connect with the youth and seniors of Baltimore, where could one man find enough time? Somehow Dezzutti has done the impossible. He has found time to create a harmonious balance between the two and still continue to grow and improve — teaming with Phelps, a nightclub atmosphere, family-oriented pools and special senior-focused Group X classes are all examples of this effort.

In a continually evolving market, Dezzutti must stay aware of trends for all populations. In fact, for the most part, Merritt’s demographics are pretty equal across the board — that means, with the nightclub atmosphere, summer pools, gym equipment and ever-changing Group X classes, all demographics must be reached. And, even when it has seemed impossible to wrap all that into a nine-club, Elite Sports Club Network, Dezzutti and his team found a way to do so.

***
It’s not a surprise the ideas Dezzutti has implemented at Merritt Athletic Clubs. He’s spent 30 years in the fitness industry, starting when he was 19 years old at Broome Racquet Club in Binghampton, NY.

After he graduated from State University of New York in Portland, NY., he felt a desire to pursue a life in fitness. “I always liked the atmosphere,” Dezzutti said. “People are always trying to stay healthy and you’re in a positive environment.”

After college Dezzutti worked at several health clubs, starting at the Denver Sporting Club. From there he found himself traveling across the U.S. looking for great opportunities and clubs trying inventive ideas.

In 1996, when Dezzutti took his role at Merritt Athletic Clubs, he became an active member of Rex Rountables. “I enjoy hearing from other CEOs in other industries,” Dezzutti said. “I listen to their ideas and think about how they can be implemented in our industry.”

It’s that constant attempt to think outside the box that has made Merritt Athletic Clubs a poolside-gathering place during the summer, a nightclub on Saturday nights and a place for people in Baltimore to get fit all year

Health Club Marketing News……Keep Your Members Coming All Summer Long!

There is never enough time for Terry Dezzutti, the COO of Merritt Athletic Clubs. Since coming on in 1996, Dezzutti, 55, has spent all his energy taking the already successful club in the Baltimore area even higher.

How has he done so?

It’s been a long ride that is just now reaching the end of its destination — to be a five-star health and fitness club. To reach such a prestigious goal, Dezzutti has had to think outside the box and do things with his clubs that both reflect the Baltimore market, and separate them from other clubs.

Welcome to the Nightlife

Like many clubs in the summer, Merritt Athletic Clubs were struggling to entice members to its clubs. Members wanted to be outside in the nice weather, walking around a warm vibrant city.

According to Dezzutti, Baltimore is the type of community that thrives on an active social scene. Not only is it assisted by Johns Hopkins University, but they also play home to the Baltimore Ravens, Baltimore Orioles, and a multitude of waterways for boating and water sports.

Pools were thriving in the daytime and bars into the night. Dezzutti took notice and decided to implement a combination.
It might be odd to think about a health and fitness club being associated with a bar, but more commonly the two are going hand-in-hand. To help summer attendance, Dezzutti decided to implement outdoor swim facilities.

The facilities gave members a place to socialize during the day and cool off during the hot summer months. “The summers used to be dead for us, and six or seven years ago we decided we wanted to be the place to be,” Dezzutti said. “Last year we built our first wave pool and it’s been a big wow. Our retention levels have stopped falling and sales are up.”

They’ve continually added more pools and social amenities. “At our Ford Avenue club, last year we built a pool bar and this year we are building a sun deck around the pool,” he said. “As that becomes more social, we have DJs and people hanging out all day playing beer pong and water polo, and meeting new friends.”

At their club in Canton, on Saturday night, they give the pool area a complete makeover. They turn the club into a Miami South Beach nightclub referred to as Aqua. For members the entrance is free, but it’s $10 for everyone else.

The club has a liquor license and brings in local DJs to spin until 2 a.m. “We use a lot of lighting and music, and it becomes a night club. That becomes a great source of lead generation,” Dezzutti said. “That gets us out of the realm of a regular health club chain in the summer.”

Dezzutti said the nightclub has been in operation for about six years. “It took off from the very beginning,” he said. In the beginning, the nightclub was driving in traffic of over 1,000 people a night. Over the past couple of years the numbers have barely dwindled to about 800 people due to direct competition from other local night clubs.

Above: Merritt Athletic Clubs COO Terry Dezzutti interviewed by Club Solutions Magazine Editor Tyler Montgomery

Everyone Gets Results

It’s safe to say that the vast majority of clubs are in business to get members results. Merritt Athletic Clubs take that responsibility extremely serious.

Once a person becomes a member of Merritt Athletic Clubs, they are inundated with the Results Program. “It’s unique in our market,” Dezzutti said. “When you join you have the ability to opt into this program. You have to show up twice a week and you have to initially meet with a health advisor.

“In that six weeks, if they don’t see results, we give them their money back. Initially, we test their BMI, thigh measurement and cholesterol. At the end of the six weeks, if we haven’t lowered one of those three things, they will get a full refund.”

Dezzutti feels that this program helps new members get involved and keeps them motivated. “Once they get involved in the program, they will get into a routine and start to like exercising,” he explained.

Getting new members results is just the first step. Merritt then transitions its focus to the kids. It has teamed up with the famous Olympic swimmer Michael Phelps.

Phelps had one aquatic academy in Baltimore, already. Developing the partnership gave members at Merritt more locations to train. With the inclusion of Johns Hopkins University in Baltimore — a top two, Division III swim club — swimming is a major competitive sport. Therefore, the partnership with Phelps has enhanced Merritt’s reach within the aquatic market.

“When we met with him, we had several swimming facilities already, and we discussed with him to become a spokesperson for our facilities,” Dezzutti said. “We reached an agreement and now we are using his protocols and practices as part of our system.

“It helps with community awareness. People know the work ethic that he has and we are using that to inspire kids to come in and start exercising.”

Still Attracting Members

Group X does a lot for clubs all across the country, and Merritt Athletic Clubs are no exception. “We’ve made a major investment over the past five years with Les Mills,” Dezzutti said. “I would say they do such a great job of choreographing the music and changing the programs that it inspires everybody. Now we are in the process of expanding all of our rooms and adding music and light fixtures to become more of an entertainment value while they are in there.”

There are ups and downs to installing extra lights and audio to boost the Group X experience. Dezzutti said one woman complained that she became dizzy due to the lights spinning. However, out of the vast majority of club members that participate in Merritt’s Group X, she has been the only complaint.

“People seem to like it because of the entertainment value,” he said. “We’ve also seen Group X change in other areas. Personal training for example, has turned into groups of three to five people because it saves time and money. For people who are looking to workout quickly, we’ve put in these fast track circuits. There are trainers that put members through machines and they get a good workout in half an hour as part of their membership. We are looking at obstacle courses and how we can incorporate those in the future.”

Group X is continually changing at Merritt. “People need a friend, they need a buddy, and Group X gives them that opportunity,” Dezzutti said. “When you have someone that pushes you every day, you show up and you get results.

“In the future people will be doing classes for specific body types and specific ages. You’ll see more seniors working on balance classes with balance boards to get through their daily life.”

However, to simultaneously connect with the youth and seniors of Baltimore, where could one man find enough time? Somehow Dezzutti has done the impossible. He has found time to create a harmonious balance between the two and still continue to grow and improve — teaming with Phelps, a nightclub atmosphere, family-oriented pools and special senior-focused Group X classes are all examples of this effort.

In a continually evolving market, Dezzutti must stay aware of trends for all populations. In fact, for the most part, Merritt’s demographics are pretty equal across the board — that means, with the nightclub atmosphere, summer pools, gym equipment and ever-changing Group X classes, all demographics must be reached. And, even when it has seemed impossible to wrap all that into a nine-club, Elite Sports Club Network, Dezzutti and his team found a way to do so.

***
It’s not a surprise the ideas Dezzutti has implemented at Merritt Athletic Clubs. He’s spent 30 years in the fitness industry, starting when he was 19 years old at Broome Racquet Club in Binghampton, NY.

After he graduated from State University of New York in Portland, NY., he felt a desire to pursue a life in fitness. “I always liked the atmosphere,” Dezzutti said. “People are always trying to stay healthy and you’re in a positive environment.”

After college Dezzutti worked at several health clubs, starting at the Denver Sporting Club. From there he found himself traveling across the U.S. looking for great opportunities and clubs trying inventive ideas.

In 1996, when Dezzutti took his role at Merritt Athletic Clubs, he became an active member of Rex Rountables. “I enjoy hearing from other CEOs in other industries,” Dezzutti said. “I listen to their ideas and think about how they can be implemented in our industry.”

It’s that constant attempt to think outside the box that has made Merritt Athletic Clubs a poolside-gathering place during the summer, a nightclub on Saturday nights and a place for people in Baltimore to get fit all year

Health Club News For Health Club Owners!

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Going the Distance
With 23 clubs and counting, Sport & Health is the largest fitness chain in the Washington D.C. metropolitan area. Locally owned and operated for more than 30 years, the company is led by CEO Jonathan Adler and President and COO Mark Fisher, two dynamic leaders who have created a plan that will allow the company to grow systematically over the next five years, while also improving its existing locations.

Left to Right: Jonathan Adler, CEO; Mark Fisher, COO and President, Sport &  Health Clubs, in the virtual cycling studio at Old Town Sport & Health fitness center in Alexandria, Va.

Anyone who has been lucky enough to live in or visit our nation’s capital knows that it is truly unlike any other place in the world. Brimming with diversity and steeped in history, the Washington Metro Area is comprised of innumerable neighborhood enclaves that often retain unique identities within the larger construct of D.C. Recently, Washington was named the “fittest city in the USA” by the American College of Sports Medicine – a distinction that happens to perfectly coincide with Sport &  Health’s plans for expanding its presence and upgrading its clubs.The network underlines a prejudice.

THE HISTORY

Adler happens to be a native D.C. resident, with a background as diverse as the metro area he serves. A true entrepreneur with a head for sales and marketing, Adler has achieved success in publishing and Internet start-ups over the years. He began working full time in the publishing business at the tender age of 19, while studying business at the University of Maryland. In December 2005, Adler was already a member of Sport   Health when he jumped at the chance to buy the company with four other friends and colleagues who were real estate partners and fellow club members. “I was looking for a business with recurring revenue and, more importantly, one that would allow me to positively impact people’s lives,” he shares.

As the other half of this executive team, Fisher brings a wealth of industry-specific experience to the table. Having worked in clubs since graduating from college in 1982, his first real gig was at U.S. Swim and Fitness – a growing company that also served as a training ground for Bahram Akradi of Life Time Fitness and several other industry veterans. The company was eventually purchased by Bally’s, prompting Fisher to open his own club. After locating a strong market in Wichita, Kan., he opened six clubs in the area over the course of 14 years. In 1996, he decided to take some time off and sold the clubs to private parties. By 2002, after several years of owning a hospitality-based business, Fisher was ready to jump back into the industry. He knew the CEO of Sport & Health at the time from his involvement in the exclusive Young President’s Organization (YPO), and opted to take a position upon joining the company that was beneath his real experience level in order to become familiar with the many changes that had occurred in the industry. By 2006, after several promotions, Fisher had assumed his current role and was deeply involved in making the company the best it could be.

PUTTING MEMBERS FIRST

Over the years, Sport &  Health has capitalized on the unique makeup of the Washington Metro Area by tailoring its approach to doing business accordingly — from programming to marketing, the clubs choose options that will appeal directly to those who live and work within a three-to-five mile radius of each location. The result is a wide variety of sports, mind-body and fitness programming for members.

“Our clubs are not cookie-cutter,” says Adler. “We choose the programming for each club by analyzing extensive demographic information which outlines the preferences of each club’s membership base – and the surrounding community as a whole.” For example, programming in one club may be more family-oriented, while programming at another location would be more focused on attracting active businessmen and women. According to Adler, being a locally owned and operated company allows them to more easily manage this variety, especially since both he and Fisher believe in getting out of the office and into the clubs on a regular basis. “I don’t manage from my office – our entire management style is very inclusive,” states Fisher.

Technology has also played a leading role in allowing Adler and Fisher to properly evaluate the performance of the clubs’ many programs. When Adler assumed his position at the helm of Sport & Health, the company was still using an outdated DOS system that was very slow to generate reports. They turned to CSI for help, and systematically updated the company’s hardware and software. Now, they are using a real-time system which everyone has access to, that can easily track and determine member preferences – an essential component in managing multiple locations that offer such a wide variety of programming. “We can look at the percentage of our membership that is engaged and determine how it is affecting retention,” Adler says.
Perhaps one of the most important ways Sport &  Health stays in contact with members and keeps a finger on the pulse of the communities it serves is through systematic communication with members when they are outside of the clubs. “We are big believers in e-mail and using online technology for keeping in touch with our members,” says Fisher. According to Adler, they reach out to all members on a monthly basis – either to let them know what’s going on in the clubs, or to ask them for feedback, or both. In addition, spot surveys are conducted quarterly and every member is surveyed annually using in-depth metrics designed to measure all aspects of each club.

    Community involvement is another key component of staying in touch. Sport & Health has raised more than $1 million in the last few years for charity, and managers and employees are expected to get out into the community where their clubs are located. This grassroots approach also applies to the company’s guerilla marketing choices, which Adler says have driven down the cost per sale while driving up closing ratios. And, the company’s record sales the last few months are solid proof that this technique is working. “Our member referrals are up because we are actively encouraging members to bring new people in, while our employees’ involvement in the communities has gone a long way to build trust,” Fisher shares. Adler agrees, stating, “With my business and marketing background, I’m a big believer in the power of the Internet and using marketing techniques that involve an unconventional approach, relying on time, energy and imagination instead of a big marketing budget,” he says.

HANDS-ON MANAGEMENT STYLE

According to Adler and Fisher, another major component to the success of Sport & Health has been the company’s outstanding Senior Leadership Team, general managers and employees – basically, the people who are out in the clubs running the show every day. “The most important thing to remember is that companies are always driven by the people who work there,” says Adler.

When asked how they have been able to locate and foster such a strong team, Fisher says they looked for “drivers” and were fortunate to find many already within the company. “We want to be the premier employer of fitness personnel in the region,” he shares. Adler agrees, stating, “We are both a great place to work and a tough place to work – our interview process is very detailed; our general managers typically go through seven or eight different interviews prior to joining our team.” In addition to exceptional management, Sport &  Health prides itself on the quality of its personal trainers; they accept fewer certifications than many other clubs, and all new hires must do an audition and interview with multiple general managers.

According to Adler, they also pay above average in order to attract and retain the best employees. This has allowed them to feel comfortable empowering managers and giving them real responsibilities – they are expected to understand what it takes to operate all aspects of the business. “We expect them to know members’ names and to spend three hours a day at the front desk, but we also expect them to be involved in discussions on marketing, pricing, compensation, etc.,” says Adler. “Our managers have a very strong influence and can really impact their club’s performance,” adds Fisher.

Neither Adler nor Fisher believe in a “top down” management style. Instead, both prefer to have as many heads as possible contributing to the betterment of the company. “You have to align your goals and expectations by developing a clear purpose, mission and value statement,” Adler shares. Fisher agrees, adding, “We have shifted the focus of the company culture and now everyone is committed to, and focused on, being a progressive, driven, energized health and fitness corporation.” To them, this means becoming better than they were last year, last month, last week, even yesterday. In practice, having regular inter-club competitions is a key part of this philosophy. Achievements like having the highest retention rates, the best member surveys or breaking a sales record do not go unnoticed, and rewarding positive change creates urgency and fosters a dynamic, high-energy environment.

More than 20 years ago, Fisher’s mother gave him a book that has now become an integral part of the culture at Sport & Health. An outwardly unassuming volume, “Rhinoceros Success,” by Scott Alexander is often mistaken for a children’s book at first glance. Its content, however, illustrates the importance of being “like a rhino” in life by taking charge and staying focused on your goal, while also being unafraid, thick-skinned and unstoppable in the face of challenges. “Today, this philosophy is enmeshed in the company – our screen savers are rhinos, clubs that “crash through” their sales goals get “Rhino Awards” and our conference room is called the “Rhino Room,” says Fisher. And it’s obvious that both he and Adler are willing to walk the walk. “Everyone needs to know what good performance looks like,” Adler says. “We are in front of them enough and are consistent enough to set the example.”

FIVE-YEAR PLAN

In case you haven’t heard, Sport & Health received $25 million in financing through PNC Mezzanine Capital and CMS Mezzanine Fund earlier this year, which has allowed the company to restructure senior debt — enhancing its capacity to grow and improve its network of clubs. Over the next five years, Sport & Health will continue to upgrade existing locations and has plans to acquire or build three new clubs per year in the D.C. area. For new clubs, they have a 20,000 square foot urban model and a 40,000 square foot suburban model, both of which have the capacity to provide the variety members have grown to expect. – CS

Keys To Success:

BECOME incredibly efficient at managing expenses, but always make sure that any changes will not have a negative effect on the member experience. Instead, focus on getting better terms from vendors and doing away with unnecessary waste.

INCLUDE key employees in the decision-making process. Get them involved in finding solutions to your club’s challenges – they are on the front lines of your business and will have important insights to share.

MOTIVATE your staff by creating inter-club competitions and rewards for outstanding achievement.

KNOW your community and service its needs. More people today are joining clubs that are conveniently located close to home or work, so understanding what your club’s dominant demographic really needs will help you keep members happy.

FIND ways to get managers and employees involved in community events. This is a great way to earn trust, and remember: You get what you give!

ASK your members to tell you what they think. Staying in touch with members and actively engaging them in the direction your club takes is paramount to remaining relevant in their lives.

Sponsored by: Fitness Life Marketing 1-888-541-0714 ext2

 Article Research Contributor: Amerishape Weight Loss

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