WNiF Magazine - Summer 2018 Edition - Page 14

BENCHMARK By Kristen Walsh YOUR WAY TO BETTER The 2018 IHRSA Profiles of Success facilitates strong, steady performance by clubs. I t’s become an important and much-anticipated tradition—the release of the findings from IHRSA’s annual Industry Data Survey (IDS) and the resulting publication, IHRSA Profiles of Success. In October, the association published the 36th annual edition of ‘Profiles’, the exhaustive and authoritative report that many clubs use to benchmark their operations, comparing their performance with that of their peers to identify their strengths, weaknesses, and opportunities for improvement. “Highly successful organisations understand the importance of benchmarking and the value of measuring key performance metrics against those of comparable businesses,” observes Brent Darden, a principal at Brent Darden Consulting, in Dallas, Texas, and past chairperson of IHRSA’s board of 14 directors. “As the saying goes, ‘what gets measured gets managed,’ and Profiles of Success offers a credible foundation for reinforcing this management habit.” The former owner and general manager of the TELOS Fitness Centre, in Dallas, Darden recalls, “At my club, it provided a useful platform for learning and growth.” “Along with The IHRSA Health Club Consumer Report, Profiles is a must- have resource for any operator who wants to better understand how well their club is doing, what consumers want, and, ultimately, how to grow their business.” Positve Indicators In general, how did clubs fare in 2018? In total, 112 club companies, representing 12,289 fitness facilities, contributed their time and effort to complete the 2018 survey, which addressed their 2017 performance. “This 76-page report provides detailed analysis of the accomplishments of leading IHRSA member clubs, providing key metrics on income, payroll, other expenses, non-dues revenue, membership growth, club traffic, retention, and EBITDA,” explains Melissa Rodriguez, IHRSA’s senior research manager. “Club operators can use it to compare their performance across profit centres and a wide range of other categories.” “Results from the IDS indicate that leading operators have continued to grow revenue and membership at healthy rates,” reports Jay Ablondi, IHRSA’s executive vice president of global products. “Clubs posted strong financial and membership numbers, with results varying by club type and size.” Overall, the respondents reported increases of 5.3% and 2.8% in revenue and membership, respectively. Clubs that are part of a chain reported higher revenue growth (+7%) than independent ones (+2.8%). Conversely, independents, with a retention rate of 72.4%, outperformed chain WHAT’S NEW IN FITNESS - SUMMER 2018