NIELSEN: LES MILLS GLOBAL CONSUMER FITNESS SURVEY (2014)

Martin Franklin April 2015

CONSUMER FITNESS TRENDS STATISTICS &

INSIGHTS FOR FITNESS FACILITIES

FACTS & INSIGHTS

1. WHO EXERCISES?

2. WHAT ARE EXERCISERS DOING?

3. WHERE AND WHY ARE THEY EXERCISING?

4. WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

6. LES MILLS5. GROUP FITNESS EXERCISERS

1. WHO EXERCISES?

WHO EXERCISES?

Globally, 78% of the adults over 18 years old exercise or would like to

Another 39% are not currently exercising to keep fit and healthy but would like to

22% 39%

39%

22% have no interest in exercising

39% exercise regularly with

87% exercising 3 or more times

a week

FACTS

81% of Millennials (18 to 34 year olds) exercise or would like to (vs. only 61% of Boomers)

36% are not currently exercising to keep fit and healthy but would like to

20% 45%

36%

20% have no interest in exercising

45% exercise regularly

27% of the adult population (18+) attend a fitness facility

27%

24% 22%

18%

9% Never been

Lapsed

Have no interest in exercisingMember

Casual member

WHO WOULD CONSIDER JOINING?20% of regular exercisers who are not member of a gym would

25% of exercise considerers who are not member of a gym would

60% of lapsed members would

36% of Millennials (aged 18-34) would

43% of Millennials (aged 18-34) would

(24% of the adult population)

INSIGHTS WHO EXERCISES?

Fitness centers have real growth opportunities in specific areas.

The vast majority of the

adult population

either exercise regularly or

would like to.

The market of people

in the exercise contemplation

stage is equally important to the

regular exercisers one (39% of the

adult population).

A HUGE OPPORTUNITY IF OPERATORS CAN UNDERSTAND THEIR REQUIREMENTS AND GAIN A DEEPER UNDERSTANDING OF THE STAGES OF CHANGE (CONTEMPLATION, PLANNING AND RELAPSE) FOR INDIVIDUALS IN EACH CATEGORY.

of regular exercisers who are not currently attending a gym would consider doing so

20% of exercise considerers who are not currently attending a gym would consider

25%

81% of lapsed members, would consider rejoining their local gym

60%

61% for Boomers.

The Millennials

>>exercise or would like to versus

2. WHAT ARE THE EXERCISERS DOING?

WHAT ARE THE EXERCISERS DOING?

FACTS

FITNESS IS THE WORLD’S BIGGEST ‘SPORT’

29%

27%

31%

59%

12%

13% 4% 7%

13%

15% 10

%

15% 7%

22%

21%

18%

7%12%

GYM-TYPE ACTIVITIES = 61%

61% of regular exercisers are currently doing gym-type activities.

36% of regular exercisers do fitness class type of activities.

37% of regular exercisers are currently doing equipment-type activities.

High frequency exercisers using equipment type activities are also likely to attend between 3-5 group fitness classes per week.

76% of regular exercisers are aged 18 to 34 years old

69% of exercisers that aren’t doing gym-type activities would consider.

36% FITNESS CLASS

ACTIVITIES

37% EQUIPM

ENT TYPE

ACTIVITIES

Runnin

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Sw

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Cycl

ing

Walk

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Team

sp

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s

Ind

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ort

s

Gro

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tra

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outd

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Gro

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tra

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ind

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Fitn

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cla

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in m

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Yog

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Pila

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Dance

Work

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out

PT

Free w

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Weig

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mach

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Card

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ach

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Boxin

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Oth

er

29%

27%

31%

59%

12%

13%

13%

15% 10

%

15%

22%

21%

18% 12

%4% 7% 7%7%

INSIGHTS

WHAT ARE THE EXERCISERS DOING?SHIFTING FOCUS TOWARD MILLENNIALS. 48% of exercisers do gym-type activities - Half the target market.

The huge majority Millennials who regularly exercise are doing gym-type activities

OPERATORS WILL

BENEFIT

BY

Re-engineering their overall value proposition and marketing towards them despite all the commentary

Designing and promoting assisted

exercise with Millennials

in mind.

Promoting and offering more fitness class activities

• Equal in popularity to equipment type activities

• Almost twice as popular for considerers

The principle of ‘caveat emptor’ applies as the range of offering

and investment increases, trying to be all things to all people.

Lower risk investment exists with the promotion and delivery of fitness class

activities for both users and considerers. Further retention

and referral opportunities exist in the cross promotion of fitness

classes to high frequency equipment users.

around ‘Baby Boomers’, who are a tougher market to reach and less-likely to consider gym-type activities.

3. WHERE AND WHY ARE THEY EXERCISING?

FACTS

LARGE MULTI-PURPOSE GYM/FITNESS CENTER/HEALTH CLUB

SMALL BOUTIQUE GYM WITH A SINGLE ACTIVITY

LOCAL/COMMUNAL/RECREATION/CHURCH HALL

PERSONAL TRAINING STUDIO

AT YOUR HOME

DEDICATED DANCE, YOGA OR PILATES STUDIO

FITNESS CLASSES TO MUSICTEAM TRAININGPERSONAL TRAINING

WHERE ARE THEY EXERCISING?

MILLENNIALS (18 – 34 YEARS)

HOME EXERCISERS

82%

82% of Gym members & casual gym members also exercise at home

45% of high frequency gym attendees also use a DVD/pre-recorded workout at home

45%

52% of all gym members are doing either a DVD and/or gaming and/or online workout program (rising to 70% for high frequency gym attendees)

52%

37%

37% of the market (defined as those who are either regularly exercising or those who aren’t currently exercising but would like to) are doing either a DVD and/or gaming and/or online workout program at home

ALL AGES48%

49%

41%

23%

35%

25%

20%

25%24%

18%

23%

30%

20%16%

21% 19%

15%17%

45%

44%

38%

25%

37%

26%

17%

24%27% 26%

19%

36%

30%

19%19%

26%

31%

24%

USER FACTS

WHY ARE THEY EXERCISING?

MAIN DRIVERS THAT PEOPLE EXERCISE:

40%27%

32%37%

GET HEALTHY / MAINTAIN HEALTHGET IN / MAINTAIN SHAPE (LOSE WEIGHT, TONE-UP ETC.)

31%33%

FUN

23%16%

CALM / RELAXING CONVENIENT

23%20% 17%

CHALLENGING

ALL AGES

THE IDEAL FITNESS EXPERIENCE IS:

MILLENNIALS

USER FACTS

WHY ARE THEY EXERCISING?WHEN THE GOING GETS TOUGH, THE REASON PEOPLE EXERCISE IS:

Knowing it is good for me

Knowing it will give me a pick-me-up Achieving my

end fitness goal

61%

47%

32%

35%

31%26

%

ALL AGESMILLENNIALS

FACTS WHY ARE THEY GOING TO BOUTIQUE GYM’S / FACILITIES?

The type of people that go there

The atmosphere/vibe

I get more personalised attention / coaching from staff

I like to follow new trends in fitness activities

63% 63%

47% 42

% 40%

38% 29

%

34%

ALL AGESMILLENNIALS

INSIGHTS

WHERE AND WHY ARE THEY EXERCISING?

Hugely popular with the Millennials who crave assisted ad social exercise, authentic experiences, atmosphere and opportunity to connect with ‘like-minded’ people in their workouts.

Large multi-purpose fitness facilities remain the most popular venue across all activities…

…However they are losing market share quickly to

new business models, in particularly micro-gyms.

Dedicated types of spaces are best

suited to achieve these desires.

PREFERRED

EXERCISE SPACES

ARE SHIFTING

ADAPT OR …

AMPLIFY MESSAGING AROUND ‘GETTING AND MAINTAINING HEALTH’.

FOCUS ON OVERCOMING BARRIERS, PROMOTING AND OFFERING AN EFFORTLESS, CONVENIENT ACCESS TO EXERCISE AND SUPPORTING MEMBERS IN THE CHALLENGING PROCESS OF CREATING AN EXERCISE HABIT.

This is the main reason for people to exercise; research shows that it delivers higher attendance than the more superficial goals relating to appearance.

Millennials - 'Getting/staying in shape' ranks higher than 'getting/maintaining health’, which should be reflected in the messaging and offering.

‘Feeling too tired’ is the most used excuse to not exercise regularly, closely followed by 'busy schedule' and 'a lack of motivation’.

Motivational messaging to improve attendance should reinforce the WHY. Key messages include:

• 'exercise provides a pick-me-up’

• 'exercise acts as a means to an end fitness goal’THE 'IDEAL EXERCISE EXPERIENCE – PROMOTE

AND DELIVER.Fun and convenience - key drivers regardless of age.

Millennials (18-34 years) - 'challenging' replaces 'calm/relaxing'.

Operators can create the optimum mix and volume of 'ideal exercise experiences' by assessing the % of challenging versus calm/relaxing workouts benchmarked against membership age demographics.

INSIGHTS

WHERE AND WHY ARE THEY EXERCISING?

HOME SPACE FUELS THE GYM SPACE.

HOME EXERCISE

COMPLEMENTS GYM

PARTICIPATION RATHER THAN

COMPETES WITH IT.

Promoting the 'live club version' of the home activities. The motivational benefits of the venue and working out with others.

Offering free home workouts, especially free weights, yoga, dance and fitness classes to music.

DVDs/Gaming and online platforms provide the greatest opportunity to engage members and educate prospects at home through the various stages of exercise change.

INSIGHTS

WHERE ARE THEY EXERCISING?

4. WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

USER FACTS

WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

22%

14%

9%

50%

36%31% 29% 28%

TOP DRIVERS WHY PEOPLE ATTEND THEIR CURRENT FITNESS FACILITY ARE:

Convenient location

Great atmosphere Great

equipmentGreat fitness classes to music

My friends go there

WHEN ASKED THE MAIN REASON

Convenient location (22%)

Great fitness classes to music (14%)

Great equipment (9%)

Location is convenient to me

The atmosphere/ vibe is good

The equipment

They offer fitness classes to music

My friends go there

CONSIDERER FACTS

WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

THE TOP THREE THINGS GROUP FITNESS CONSIDERERS LIKE ABOUT GROUP FITNESS CLASSES ARE…

CONSIDERATION OF GROUP FITNESS:31% of gym members who don’t currently do fitness classes to music would consider

21% of casual members who don’t currently do fitness classes to music would consider

21% of lapsed members/never been a member who don’t currently do fitness classes to music would consider.

37%

28%

Great music

27%

Exercise style/

structure/ method

Motivation

31%

21%

21%

5. GROUP FITNESS EXERCISERS

WHO IS DOING FITNESS CLASS ACTIVITIES?

THE LARGE

ST SEGME

NT ACROSS ALL

AGE GROUP

S

MILLENNIALS (18 TO 34 YEARS) ARE MORE LIKELY TO BE DOING

FITNESS CLASS ACTIVITIES

2.5 TIMES BIGGER

THAN GEN X (35 TO

49 YEARS)

6 TIMES BIGGER THAN BABY

BOOMERS (50 TO

60 YEARS).

FEMALES, and more specifically

FEMALE MILLENNIALS, are more likely to be doing fitness class activities

THE DOMINANT PROFILE IS FEMALE OUTNUMBERING MALES 5:1

36%

52%OF REGULAR EXERCISERS CURRENTLY PARTICIPATE IN FITNESS CLASS ACTIVITIES.

JUST OVER HALF OF REGULAR EXERCISERS WHO ARE NOT CURRENTLY PARTICIPATING IN FITNESS CLASS ACTIVITIES WOULD CONSIDER.

GROUP FITNESS EXERCISERS

HIGHER ATTENDANCE

34%

45%

56%

54%

10%

1%

45% gym attendees who participate in group fitness visit their gym

5+ times per week. In comparison to only 34% for all gym attendees.

High (5+ times a week)

Medium (1-4 times per week)

Low (less than once per week)

All gym attendees

Gym attendees

who participate in group fitness

USER FACTS

CANCELLATION RATES46% of group fitness users are likely to cancel their membership or stop attending their gym if their preferred class was cancelled.

LEADS GENERATION84% of group fitness attendees recommend their current facility to their friends and family compared to 76% of gym attendees.

Just over half of regular exercisers who are not currently participating in fitness classes would.

LONGER TENURE AMONGST MEMBERS

9% 11%

29%

38%

61%

51%

All gym attendees

Gym attendees

who participate in group fitness

61% of all gym attendees are with

their facility for less than 12 months.

In comparison to

51% for gym attendees who

participate in group fitness.

38% of gym attendees attending group fitness classes

remain loyal for 1 to 5 years versus 29% for total gym attendees.

11% vs. 9% remain loyal for more

than 5 years.

New (less than 12m)

Medium (1-5 years)

Long (5+ years)

CONSIDERER FACTS

GROUP FITNESS EXERCISERS

KEY DRIVERS FOR CONSIDERERS ARE:

WHEN CONSIDERING 'FITNESS CLASSES TO MUSIC', THE FOLLOWING IS MOST IMPORTANT TO CONSIDERERS.

57% 51% 44% 42%

MAIN BARRIERS TO ATTENDING ARE:

• A DISLIKE OF BEING CROWDED. CROWDING IS CONSIDERED 2X AS IMPORTANT AS A DETERRENT.

• A DISLIKE OF WORKING OUT WITH OTHER PEOPLE.

• PRICE OF CLASSES (IF ADDITIONAL TO MEMBERSHIP).

Large room

Small amount of people in the class

Price of class

Instructor

37%

KEY DRIVERS FOR PARTICIPANTS ARE:

30% 27% 26% 26%

En

erg

y o

f a b

ig g

rou

p

Exe

rcis

e s

tyle

/ s

tru

ctu

re /

meth

od

Con

ven

ien

t sc

hed

ule

tim

es

Inst

ruct

or

SUBSTANCE OVER

STYLE IS THE IDEAL INSTRUCTOR PREFERENCE

50%

28%

Great music

27%

Exercise style/

structure/ methodMotivatio

n

INSIGHTS

GROUP FITNESS EXERCISERS

Investing in recruitment and training of instructors. Members are demanding higher quality and more coaching.

Offering programs that are relevant to Women and Millennials

Building bigger studios – Participants rank 'the energy of big

group' number one driver and considerers rank 'a large room as the

most important driver (57%).

Promoting different aspects whether you are talking to users or considerers. With considerers

focus on:

OPERATORS CAN

IMPROVE OVERALL

PARTICIPATION BY…

GROUP FITNESS MATTERS – OPERATORS CAN HAVE CONFIDENCE THAT IF WELL EXECUTED, IT CAN DRIVE ATTENDANCE, RETENTION, REFERRALS AND MEMBERSHIP GROWTH.

• ‘Great music, a motivating environment and great programing delivered by a well educated coach’.

• ‘Assisted’ versus ‘Group’ - having to workout with other people is what puts non-attendees off.

• ‘Not crowded’, ‘small group training’.

TRP 10,000™ Study: Dr Melvyn Hillsdon (HCM, Jan ‘15)

26

GROWING MEMBERSHIP AND PROFITWhy Group Fitness matters

Growing membership?It’s simple… Get more people to come more often.

27

Membership retention is the largest problem facing our industry today.US: 15 million new members join every year; 12 million leave…

28

RETENTION CHALLENGE

• 1∕3 of members stop attending by month 3 – that’s after an average of just 12 workouts!

• 50% of members stop attending by month 6

WHAT DOES THIS MEAN TO YOU?

• Decreasing staff (floor staff in particular)

• Lower wages– Low engagement

and staff quality– High turn over

• Reducing members’ services such as:– Towels and locker-

room amenities– Hours– Childcare– Maintenance and

cleaning

COST REDUCTION - REALITY CHECK!• All costs are NOT

equal– Any cost that

diminishes the member experience causes an increase in attrition and a decrease in sign-ups

– Any revenue loss occurs at the margin – meaning that it impacts the bottom-line directly

46% of Group Fitness participants are likely to cancel their membership or stop attending their gym if their preferred class was cancelled!

Results, coaching and

Motivation

31

Getting people to come more often?Giving them more of what they want!

32

Growing attendance

‘Managing’ Motivation

Growing attendance for 2 groups:

- New Customers- Existing

Customers

How good are we really at providing results and motivation to new members?

Reality Check

70 to 80% of low-cost clubs’ members have been a member of a club before… and 50 to 60% of them left their previous gym within 6 months. Their main reason for leaving was due to a low attendance…

Global report on the low-budget segment 2014.

• 1∕3 of members stop attending by month 3 – that’s after an average of just 12 workouts.

• 50% of members stop attending by month 6 – so, if you’re lucky, 24 workouts... spread over a 24-week period!

New member induction strategy

and process

The Holy Grail of the industry…

PENNSYLVANIA STATE UNIVERSITY

Get FitTogether

The Questions

Can we do that using Group Exercise only,

without any other form of exercise or

diet?

Can we get deconditioned adults,

the most resistant type of people to

exercise, back into healthy lifestyles?

25 new fitness

participants, so-called ‘couch potatoes’, between the ages of 25 and 40 years

The ProgramExercise program of 30 weeks

combining various LES MILLS™ GX programs to meet the American College of Sports Medicine’s recommendations

• Cardio - 60 minutes 3 to 4 times per week

• Strength – 8 to 10 strength exercises 2 days per week

• Flexibility exercises once per week

Average BMI of

30

No dietary changes

Cardio = One of either Les Mills' BODYATTACK™; BODYCOMBAT™; BODYSTEP™; BODYVIVE™; RPM™; SH'BAM™.

Participants went through a gradual build up of intensity through a build up of length and frequency of each of the 3 activities.

6 Weeks Familiarization Protocol

CARDIO (per week)

BODYPUMP™ (per week)

BODYBALANCE® (per week)

Week 1 20 mins 20 mins (Tracks 1-4) 10 mins (Tracks 1-2)

Week 2 2 x 20 mins 30 mins (Tracks 1-6) 20 mins (Tracks 1-4)

Week 3 2 x 30 mins 30 mins (Tracks 1-6) and 1 x 20 mins (Tracks 1-4)

25 mins (Tracks 1-5)

Week 4 2 x 35 mins and 1 x 20 mins

60 mins (Tracks 1-10) 40 mins (Tracks 1-7)

Week 5 2 x 50 mins and 1 x 20 mins

60 mins (Tracks 1-10) and 1 x 20 mins (Tracks 1-4)

60 mins

Week 6 2 x 60 mins and 1 x 30 mins

1 x 60 mins (Tracks 1-10) and 1 x 40 mins (Tracks 1-7)

60 mins

Next 24 WeeksCARDIO

(per week)BODYPUMP™ (per week)

BODYBALANCE® (per week)

Weeks 7 - 18

180 mins(3 x 60)

120 mins(2 x 60)

60 mins(1 x 60)

Weeks 19 - 30

240 mins(4 x 60)

120 mins(2 x 60)

60 mins(1 x 60)

What was tested over

the course of the study?

• Cardiovascular fitness, weight, triglycerides, fat and lean tissue percentage, glucose levels, blood pressure, cholesterol, bone density

• Attendance/compliance

• Enjoyment, motivation, interest in class, confidence, attendance and enjoyment were measured

EXPERIMENTAL MEASURES REPORT

Penn State University’s ‘Get Fit Together’ Research Detail

ML/KG/MIN< 30

UNHEALTHY30-34POOR

35-39BELOW

AVERAGE

40-44AVERAGE

45-49ABOVE

AVERAGE

50-54GOOD

>55EXCELLENT

57%

WEEK 0 15 30

ACHIEVED ML/KG/MIN

30 40 47

CARDIOVASCULAR FITNESS

ML/KG/MIN< 60

UNHEALTHY61-72LEAN

73-84IDEAL

85-96AVERAGE

> 97UNHEALTHY

5KG

(11LBS)

WEEK 30 15 0

ACHIEVED ML/KG/MIN 77 89 92

MASS – MEN (178 CM)

ML/KG/MIN< 50

UNHEALTHY51-60LEAN

61-79IDEAL

71-80AVERAGE

> 80UNHEALTHY

3KG

(7LBS)

WEEK 30 15 0

ACHIEVED ML/KG/MIN 77 78 80

MASS – WOMEN (163 CM)

PERCENTAGE < 5UNHEALTHY

6 - 13ATHLETE

14 - 21FITNESS

22 - 29ACCEPTABLE

> 30UNHEALTHY

8%

WEEK 30 15 0

ACHIEVED % 24 28 32

FAT MASS % - MEN

FAT MASS % - WOMEN

PERCENTAGE< 13

UNHEALTHY14 - 21

ATHLETE22 - 29FITNESS

30 - 37ACCEPTABLE

> 38UNHEALTHY

5%

WEEK 3015

0

ACHIEVED % 38 4 43

EXPERIMENTAL MEASURES REPORT

Penn State University’s‘Get Fit Together’ Research Detail

TRIGLYCERIDES

MG/DL<150

NORMAL150-199

BORDERLINE200 -499

HIGH>500

EXTREME

16%

WEEK # 30 15 0

ACHIEVED RATIO

90 95107

RATIO< 3.6LOW

3.6-6.3AVERAGE

6.3-8.0MODERATE

> 8.0HIGH

16%

WEEK # 30 15 0

ACHIEVED RATIO 3.63.9

4.3

MEN – TOTAL CHOLESTEROL

Penn State University’s ‘Get Fit Together’ Research Detail

WOMEN – TOTAL CHOLESTEROL

RATIO< 3.2LOW

3.2-5.0AVERAGE

5.0-6.1MODERATE

> 8.1HIGH

8%

WEEK # 30 15 0

ACHIEVED RATIO 3.2 3.4 3.5

The Results

across its

compliance 99%

weeks30

Key Take- outs?

You can achieve the desired training effects through Group Exercise only and, you can trust LES MILLSTM programs to be highly effective to provide new members with results and to create exercise ‘stickability’.

Key Take-outs

# 1

Key Take-outs

A mixture of cardio, strength and flexibility is best to prescribe to new members.

# 2

Key Take-outs

# 3

Don’t expect deconditioned people to commit to full-length classes.

Recommend a gradual build up of intensity over the first 6 weeks (length and duration of their workouts).

Programs

Range

Quality

Intensity

Stickability

Get Fit

Together

Instructors

Transform from ‘no pain, no

gain’ to ‘step by step’

Sort the logistics

Connect and encourage

MarketingExisting clients

Referrals

Email, website

Facebook and social

media

Get Fit Together pack

NEW TREND

GROWING MEMBERSHIP AND PROFIT Ι LES MILLS™ INSIGHT SERIES

FOR EXISTING USERS

RE-INVENTING OURSELVES

As an industry, we need to keep innovating to find more ways to attract new customers into exercise facilities and to increase members’ engagement.

This will keep the industry fresh, relevant and competitive in the decades ahead as competition increases, populations change, technology and medicine redefine what is possible.

• Retention is still our biggest challenge

• The competition is continually increasing, leading to a serious price war

• Stagnating industry – segmentation rather than innovation

• We struggle getting new people to join our clubs -less than 17% of adults belong to health-clubs in any single country, and market penetration of 10.5% is enough to be among the top 10 of all countries

It is not going to get easier…

GROWING MEMBERSHIP AND PROFIT IS TOUGH…

LES MILLS INTERNATIONAL © 2013 59

EXERCISE CLUBS ARE AT RISK

The world and our customers are changing, while competitive industries are evolving faster than we are.

Immediate satisfactionTechnologyAn experienceBest value for ££

THE MILLENNIALS ARE ‘IN’ -

ARE YOU COOL

ENOUGH?

Gen Y thinks exercise “lacks

excitement and sociability.”

Engage: GenY

NEW TYPES OF COMPETITION

Motivation, entertainment, social connection and

convenience

New technologies hold huge implications for the exercise industry in terms of the consumer’s experience and, more importantly, who is in charge of the experience.

It is no exaggeration to say that many consumers will expect all their experiences, including exercise, to deliver ‘what I want, when I want it, and where I want it – oh, and I may want it differently tomorrow.’

AC NIELSEN’S WHITE PAPER

5 YEARS AGO…

64

THE FUTURE IS

NOWIn today’s ‘connected’ society, the ‘on-demand’ delivery concept is well established, and often expected.

It is becoming an entry price in most B2C businesses…

Flexible, convenient, technology-based workouts that people can easily fit into their busy schedules is a trend that’s here to stay. Virtual Group Exercise is likely to become a common offer, and not only in exercise facilities.

WHY, WHAT, HOW

VIRTUAL GROUP EXERCISE

Virtual group exercise has arrived in a big way and is already unfolding in some 3,000 clubs worldwide.Clubs are capitalizing on the new group exercise concept to cater to markets and to cut costs. The operators who’ve already opted in consider these systems a way to increase studio utilization, reduce costs, improve the member experience, and to complement their live, flesh-and-blood group exercise instructors. IRHSA – CBI – JULY 30, 2013

THE THREE COMPONENTS OF VIRTUAL GROUP EXERCISE

PROJECTION/STUDIO SET UP PLATFORM PROGRAMS2 31

INNOVATION CYCLE DATA – UK TEST CASE

The introduction of innovation into the studio has attracted nearly 200 more members to the cycling classes compare to the previous month. This is an increase of 50%. As a result, the number of bookings has also increased by 55% with nearly 800 more bookings were made from 01 Feb to 03 Mar compared with the whole of Jan 2015.

MonthNumber of bookings

Number of unique members

Average booking per member

Feb-15 2,227 546 4.1Jan-15 1,431 362 4.0

VIRTUAL GROUP EXERCISE

• A trend that is here to stay• Today’s consumers expect flexibility,

convenience and high-quality experiences anytime

• A must to remain relevant• A very easy and cost-effective way to reduce real

estate waste, significantly expanding the appeal of your offering

• A great new-member acquisition weapon and a highly effective retention tool

• Implementing a GX VIRTUAL solution requires 3 things: • A great audiovisual studio set up for a fully

immersive experience• A reliable platform – plug-and-play box or free-

standing kiosk• World-class program content to hook members,

generate referrals and attract new members

• Choose the best-in-class option

69

How do the best facilities do?• Design a high-energy workout

environment

• Create a relationship selling and new member induction system

• Recruit a team of great personal and small group trainers

• Build a ‘club within a club’ system for sports and other activities

• Develop a member education and social network communication system

The bottom line is…Group Fitness attracts MORE MEMBERS, who attend more often, REMAIN LOYAL and attract new members THEMSELVES!There is definitely a commercial connection between Group Fitness attendance and long-term profitable facilities.

70

71

What does it takes to achieve ultimate attendance?

First, define success. Set some GOALS.

72

Option 1:Your membership - this is the attendance you would

get if only 50% of your members attended 2

classes a week)

Option 2:50% of

your current

club visits per week

Option 3:Your

maximal studio

capacity

Option 4:Your

adjusted studio

capacity

Current weekly GF attendance

Then, choose a first milestone to go for, a 12-month goal…

What is your ultimate GF weekly attendance potential at 3 to 5 years?Choosing a number…

73

Achieving your goals

Group Fitness Management blueprint

IMPLEMENT A GF SCORECARD

MAXIMIZE CLASS SCHEDULE

RECRUIT GREAT INSTRUCTORS

ORGANIZE A TRAINING PLAN

DEVELOP THE BEST STUDIO

CREATE A GF MARKETING PLAN

PLAN FOR SUCCESS

HAVE A GREAT LEADER

6. LES MILLS

FACTS LES MILLSOFFERING LES MILLS IS THE PROVEN WAY TO INCREASE GROUP FITNESS ATTENDANCE, MEMBER LOYALTY, REFERRALS AND THEREFORE MEMBERSHIP ACQUISITION, RETENTION AND PROFIT.

A third of the

market know of Les Mills 52% of gym attendees know of Les Mills

On average Les Mills users attend 3.1 classes per

week

93% of Les Mills users have recommended their current facility to friends and family,

compared to 84% of 'group fitness attendees'

and 76% of 'gym attendees'.

INVESTING ON RESULTS

Les Mills is a strategic choice for those operators looking to increase group fitness attendance, member loyalty, referrals and therefore membership and profit.PARTNERING WITH THE BEST

INSIGHTS

Les Mills allows operators to focus on member experience execution using 'best in class resources', avoiding the pitfalls of trying to create and execute member experience programs.

Les Mills has researched backed tools to help operators survive and thrive.

www.lesmills.com