Quarterly Development Meeting September 2012

1. Quarterly Development MeetingSeptember 2012

2. 9.30 – 10.15 News from around the Network and the sector 10.15 – 10.45 Training update- who uses apprentices? 10.45 – 11.00 “Does what it says on the tin” 11.00 - 11.30 Break 11.30 – 12.00 How the social media network makes you money 12.00 – 12.30 Operations Audits 12.30 –­ 13.00 Best Practice and Evolution Awards 13.00 – 14.00 Lunch 14.00 – 14.45 Marketing update- National Fitness day 14.45 – 15.30 Brand Break-out session 15.30 – 16.00 Break 16.30 – 17.00 Learning Champions are good for business 17.00 Close 17.00 – Late Quiz!

3. News from around the network Jan Spaticchia, CEO énergie Group

4. News from around the network Jan Spaticchia, CEO énergie Group

5. Training update • Dom Greenwood, Group Training Manager

6. Does what it says on the tin…………. • Mark Lemmon, Managing Director

7. COMMERCIAL BREAK

8. Does exactly what it says on the tin • If you follow the instructions on the tin • Preparation • Application • Drying time • Number of coats • Operations + Procedure • Methods + Goals • Franchise system!

9. Break ; back at 11.30am

10. How the social media network makes you money…………… • Austin Moore, SRO

11. Operations Audits • Innes Kerr

12. Audit measures brand compliance in all areas of the club operations and specifically • Contractual compliance in corporate and financial governance • Brand compliance in fit-out, branding & business systems • Statutory requirements in Health & Safety and Employment • Operating standards • Business performance and KPIs

13. Conducted by the Operations Managers • Annualy for EFFW, 6 monthly in EFFC & F4L • Pass and Fail rates and sanctions • Starting September

15. Process • Date booked • Instructions, confirmation and Contractual declaration • Full audit and feedback on the day • If required, follow-up of evidence, corrective action etc • If required support programme scheduled • Review date agreed and action plan reviewed

16. Performance Awards • Operations Team

17. EFFW Awards • Cheryl Hertig, Operations Manager

18. EFFW HUDDERSFIELD Secondary Income Target Actual Percentage June £5,000 £3,664 68% July £5,000 £3,254 54% August £5,000 £4,308 86% Laser lipo, PT classes and therapy treatments (nails and threading) and their énergie health bar prove to be great assets to the business

19. EFFW FAREHAM Customer Service • In the last quarter has shown: • In excess of 95% Active Members • In excess of 85% Inducted Members • Excellent results showing that the énergie systems are being applied, also managing members giving them a good experience.

20. EFC Awards • Simon Day, Operations Manager

21. EFC WILMSLOW • Sales • TARGET             ACTUAL                    % +/- • JUNE            95                         112                             +18 % • JULY           100                       133                             +33%AUGUST     160                       172                             + 7% • A consistent performance from the club in a traditionally tough selling period. • The target in August was revised from an original 95. • This was done without compromising Pro – rata income

22. EFC ANDOVER • Retention • TARGET         ACTUAL                  %+/- • JUNE          40             33                             82%JULY           40                    38                              95%AUGUST     50                    41                              82% • A target where your aim is to be LESS than 100%! • Three consecutive months of low leavers is a testament to the service • levels and systems delivered in the club • This allowed the club to grow to 1000 live members

23. F4L Awards • Rangel Sehalic, Operations Manager

24. F4L KETTERING • Sales • May Aug Movement • Closing  members    41 866 +825 • Leavers in the same period was only 36

25. SHOKK Awards • Jonathan Williams, Operations Manager

26. SHOKK Bracknell • Sales • May Aug Movement • Closing  members    75 179 +104 • Leavers in the same period was only 16

27. Network Overview • Innes Kerr, Group Operations Director

30. Lunch is served Please be back at 14:00

31. Marketing update • David Beattie

32. Brand break out sessions • Brand Operations Managers breakout groups

33. The Monthly Sales Cycle

34. Fitness Industry culture of month end “close out” • creates a culture of pressure • generates poor quality sales at best and discounted sales at worst • prospects buy the “deal” not the product or services • if successful can create a bottleneck in the émpower programming • new members get a poor experience, alienation of current members • in worst cases impacts on reputation and brand perception • as attrition increases and average yield decreases more pressure is put on the sales process……………………..it’s a vicious cycle

35. An alternative approach • genuine “offer expires” close out to launch monthly cycle • maximise the benefit of the planned marketing activity across the month • lower daily target creates a better quality prospect experience • maximise the benefit of the lower “initial fees” prior to DD cut off date • more opportunity to exceed sales targets with lower month end targets

39. Close out ; missed prospects Price Guarantees, SMS

40. Objective • create a positive cycle • focus on quality of prospects, presentations, sales and empower process • improve the integrity of the process • increase average joining fee and pro-rata fees • reduce attrition • increase referred income and reputation

41. Learning Champions are good for business • Jan Spaticchia, CEO • Dom Greenwood, Group Training Manager • Karrin Simpson, Learning Champions Mentor

42. The Wrap Jan Spaticchia, CEO