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BODYTEC Operations Manual - January 2022

Published by BTSO, 2022-02-09 07:48:57

Description: BODYTEC Operations Manual - January 2022

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Never forward private contact numbers (mobile number or direct office lines) of owner and/or people working at the BODYTEC Support Office. If someone wants to offer/sell something; ask them to email it to the owner or studio manager on <name>@bodytec.co.za Important: Voucher (trial) requests always come to your studio email inbox automatically. Do not answer the potential member by email but first call them immediately after receiving the request to book a trial session as that is much more successful and avoids back and forth emailing in order to find a suitable timeslot or answering questions. When there is an opportunity to book a trial, time is of the essence. Yet, research statistics out of Harvard Business Review Show that most companies are slow to respond to leads, meaning they aren’t handling online queries effectively. The statistics show that 24% took more than 24 hours — and 23% of the companies never responded at all! The research suggests that companies that respond to leads within an hour, are 7 times more likely to convert leads to sales. Why is response time so important? The reason why the time you take to respond matters so much is not only to do with top-of-mind-awareness, but also because of, the “wow effect”. Would it freak people out if you called them seconds after receiving a trial request? The truth is that consumers nowadays want and expect an instant response. Responding fast to a potential member is a great way to make a good first impression. It shows that you’re interested, and it tells them a bit about how quick your service can be — helping to build trust right from the start. 5.6. Check out and goodbye One of the most important rules of customer service is not only making a member feel welcome when they arrive – it is making the member feel acknowledged when they leave! In fact, a member remembers the last impression about you and BODYTEC more than the atmosphere or conversation before or during the training! Offer every member a friendly smile, wish them a good day further and walk the member to the door. If applicable, it is a nice gesture to give the member some useful advice on the way out (for example: nutrition, training advice or remind them to drink enoughwater whenbackintheoffice/athome). Remember: A happy member talks positively about BODYTEC and spreads the word to new possible members! Word-of-mouth is the cheapest and most effective marketing tool so maintaining a high-quality service and training experience is essential! Caution: BODYTEC is not a place for sharing personal chit-chat and our members are not our “buddies”. It’s important to be professional! Unless the member specifically asks, avoid giving too much information about training, weight loss, stretching,

nutrition etc. Also don’t talk about topics the member might not be interested in. Remember members don’t come to BODYTEC for socializing, they want to save time! 5.7. Positive and respectful attitude SMILE! Everyone likes to be greeted with a smile and by name; it creates a positive, comfortable and trustworthy atmosphere! It shows members that one cares about them. Always check the member’s name before the appointment. Treat everyone well: be friendly, respectful and professional. Your personal attitude is what counts and it determines if you will be successful in what you do or not. The following phrases and attitude are no-no’s: “Ican’tdoit”, “I’mnever goingtoable todoit”, “Myboss wants itthis way”. Give the member your immediate attention when they enter the studio. If busy with another member or on the phone; give the member a sign (make eye contact, gesture for them to take a seat or have a glass of water). Make it clear that you are aware of him/her and will assist as soon as possible. Don’t let the member wait for too long. Help where needed and listen to a member’s needs and feedback. BODYTEC needs to improve its services constantly in order to expand successfully! The role of the personal trainer is also to motivate and uplift the members. If a member walks into the studio with a negative attitude, try to give the conversation a positive direction. For example: Member: “Gosh, I really didn’t feel like coming today. I have so much work to do at the moment!” Trainer: “It was the right decision to come. You’ll see, you will feel much better and more energized after the training!” Member: “The weather is so bad that I didn’t feel like leaving my house to come to the training!” Trainer: “It’s great that you decided to come despite the weather, and you won’t regret it!” 5.8. BODYTEC Complaint Policy Although complaints are not always easy to deal with, they can be used to improve your customer service. The following steps should be taken when dealing with complaints: Apologize: ALWAYS apologize – even if you are right. Never argue because no one wins an argument with a member. Even if you prove to be right, you might lose the member (R10, 000+ a year) Apologize, don’t take it personal and never use the word BUT

Fix it: Do whatever it takes to fix the situation Sweeten it: go the extra mile and offer member free voucher for a friend or free merchandise item If a complaint is lodged, solve the matter immediately and in a friendly way. Call and say, “sorry Jane, we messed up!” Take the member seriously. If the matter cannot be resolved straight away or is outside your authority, then pass it onto the studio manager. Reassure the member that his/her concerns will be taken care of and that the studio manager will respond as soon as possible. Always follow up after the matter has been resolved to see if the member is happy. A complaint is a gift, because often besides the one member who complains openly (smelly jacket, faulty equipment etc.) there will be 10 members who think the same. They won’t voice it but won’t re-sign at the end of their membership either if nothing is done about the issue. Furthermore, a member who complains and is treated professionally is far more likely to be a loyal member, then someone who never had a complaint. Remember: Even negative feedback is important and necessary to improve the service and work at BODYTEC. Problems need to be discussed with your colleagues/manager in the studio immediately! Complaints are lodged in every business in the world, it depends on the immediate response and friendly attitude of the staff if the complaint has a negative effect or not! General note: A member remembers negative experiences 12x more than positives ones. A disappointed or upset member will talk about the experience to an average of 12 people. Among these people could be possible new members which are lost before they even contacted BODYTEC. 5.9. Teamwork BODYTEC wants its staff members to enjoy their work. For someone working in the fitness industry for the first time it can be somewhat challenging at the beginning; learning about a new technology, how to deal with members, how to do the training etc. So many new things but also very interesting things to learn. You can only improve yourself with the help of your colleagues and therein lies another focus of BODYTEC: Teamwork!! When you work in a great team and if you are a team player, you WILL have fun working at BODYTEC. All staff members who represent BODYTEC need to ensure a high-quality service and training. Everyone needs to be updated of changes and news. At any given time, it is important to work as a team. Teamwork means that everyone has dedicated roles and tasks, but help should be immediately offered if a team member needs assistance. Communication is very important to create a positive and dedicated team of colleagues around you. Example: If one personal trainer has a double-training booked, then his/her colleague should handle the reception – this person should also assist members with fitting/removing the training jackets and belts to avoid waiting times. Teamwork means good

communication, working hand in hand and ensuring a smooth coordination of all studio processes. If an issue between team members arises it is important to get it resolved as quickly as possible and to keep on working in a professional manner. There needs to be a friendly, motivating atmosphere in the studio always. Any important news or changes need to be passed onto all staff members as quickly as possible. It is recommended to establish a communication channel for each studio e.g. WhatsApp group and have a book at reception announcing all important news of each day and have a process whereby everyone knows which email was answered/enquiry followed up and which one not. The studio manager should also talk to each staff member individually. A whiteboard in the office/kitchen with training schedules, To-Do lists etc. is a good way to have important information visible at all times. Regular staff meetings are recommended (at least once a month). Furthermore, the Support Office sends a monthly staff newsletter (bulletin) to your studio email every month around the 15th and it is important this newsletter gets forwarded to the trainers personal email addresses or printed and put up in the kitchen area so they are aware of all the latest news, promotions and operational changes. Important: All staff members should read the EMS facts and researches on a regular basis (once a month) until they have familiarized themselves with every fact/detail. 10 qualities of a great team player: 1. Be 100% reliable (working hours). 2. Be 100% trustworthy (cash, products, sick leave etc.). 3. Be the best team player you can be (help, trust and coach each other). 4. Be knowledgeable (memberships, fees, EMS, telephone and sales talk). 5. Be polite, friendly and service orientated. 6. Be neat and show a clean (training clothes) and well-groomed appearance. 7. Be professional (use appropriate and professional language). 8. Be dynamic. 9. Be considerate (towards studio manager andcolleagues). 10.Be observant and aware of everyone and everything around you and SMILE! 5.10. Ethics in Business Ethics in business can be defined as values that govern the behaviour of people with respect to what is right or wrong and good and bad in actions that affect others, and these are an important aspect of BODYTEC. It applies to all aspects of business conduct and is relevant to the conduct of individuals within the organization as well as the organization as a whole. BODYTEC strives for a work environment that is:  Service driven  Respectful  Professional

 Safe  Accommodating cultural differences, and  Free of inappropriate and abusive workplace behaviour Franchise partners are independent entrepreneurs yet should adopt the core values of the brand. Therefore, a code of ethical values for BODYTEC is applicable to franchise partners, their employees, their behaviour and ultimately the image of our brand. Service: Strivingto serveour members in the best possible way in order toimprove and add value to their lives and wellbeing Respect: Treating your members, colleagues, business partners and suppliers with respect and try to be a team player and strive for excellence Integrity: Conducting your business with integrity within the legal framework relating to SA Accountability: Honouring obligations to members, colleagues, business partners and suppliers Valuing our Brand: Protecting our IP, information and interests of our business partners and colleagues 5.11. Standards (equal quality) As mentioned throughout the operations manual it is important to maintain high and consistent standards across all BODYTEC studios. This is applicable for all daily operations ranging from the BODYTEC way of training, how employees are trained and how they present themselves to the operating software used, how the studio and equipment is maintained and how emails or phone calls are answered. Although BODYTEC franchise partners and trainers can add their own unique style to these elements it’s important that these guidelines and standards are met. These guidelines and standards have been tried and tested and will equip all franchise partners to run a successful BODYTEC studio. Details of all standards are found in the previous chapters in their applicable sections. 5.12. Marketing & Sales The two types of marketing (brand- and local marketing) are discussed in detail in the next chapter. Besides marketing, sales is another important aspect of the BODYTEC brand. The word “sales” is often perceived as negative by many people. It sounds like hassling, raving unnecessarily about a product or service and some people even see it as deception. However, every human “sells” his/her best side, his/her emotions, his/her special knowledge, and his /her talent... a list which can go on and on. One needs to acknowledge that one is aiming at a specific goal: one wants a member to enjoy training at BODYTEC. But one must think economically as well; only when one sells the concept successfully, can a member benefit from it. If one doesn’t have economic success then the offers and service will deteriorate, which will lead to members

cancelling or not renewing their contracts which will lead again to limiting the number of staff etc. On the contrary sales, motivation, entertainment, knowledge and persuasion is expected from every professional company. When it doesn’t happen, the company and/or the product is often considered unprofessional. These kinds of opinions are formed in our subconscious. Therefore, one of the cores of the BODYTEC brand (and any business) is to sell and getting members to come back for more. Because what McDonald’s knows, what FedEx knows and even what a theme park like Disney World knows – is that the member you’ve got is much less expensive to maintain and sell to than the member you don’t yet have. The following rule applies: One only sells something the member needs for reaching their goals. That makes sales fun! When one takes that to heart, sales become easy and members will follow your advice. Always bear in mind, members are your bread and butter at the end of the day. Positive attitude Sales are not a matter of talent. It is more a combination of courage to have a sales talk, the right communication tools and a wealth of product knowledge. Initially one is insecure. In your head you are thinking: “will the person ignore me?”, “am I too pushy?”, “does the person think, I just want their money?”, “will I be able to answer all of their questions or will there be embarrassing moments for me?”, “am I making mistakes?” These negative questions will steer your actions intuitively and could lead to you not even trying to do a sales talk. Your starting point must be a positive attitude – only then can you help the member with their needs and address any questions and concerns they may have. Supporting a positive attitude is letting the right thoughts into your head before the sales talk: “I will be able to answer every question and if not directly, I can read up about it and get back to them”, “this particular person could reach their goals faster if they tried eating more protein in combination with training at BODYTEC”, “I should tell this particular person how BODYTEC helps increase metabolism and reduces body fat.” A positive approach is the building block for your successful sales talk and will turn you into a respected, professional and successful sales and service expert at BODYTEC. Too much detail makes person bail Never start with explaining every little detail about the BODYTEC workout or all available EMS research. Nobody cares! Members can find the information they need on the BODYTEC website and on studio sheets. Sales training always points out that a successful sale depends on 15% detailed knowledge and 85% on personal skills/attitude. Only when a person asks very specific questions does one provide as much detail as possible, but if they don’t, don’t overwhelm them with information they never asked for.

When does the sales process begin?  When selling memberships.  Whenyou have members, whoare happy.  When meeting walk-in’s who are looking for information. Buying is an emotional process and therefore one should always take note of the following principles while watching body language, eye contact, voice and dialogue. First contact You never get a second chance to make a first impression! 4 typical questions a potential member will ask themselves: “Will I feel comfortable there?” “Will I reachmygoals?” “Will I get personal attention?” “Can I afford it?” These questions can be answered during the first contact: Smile, approach the potential member confidently, motivate the member, don’t be over the top and show you enjoy your work. In short: be positive! Create the demand The three pillars of creating the demand are: encourage, listen and convince. Start off with an engaging discussion and as you show that you are genuinely interested in people, their wishes and problems, you will create demand. Find out what motivates the member and ask the right questions to encourage a membership like: “What have you done about your back problems so far?”, “Have you thought about doing strength training before?”, “What do you mean with problem areas?” Present the offer It is important for the member to acknowledge what BODYTEC can offer him/her. It is the next step and creates the motive to buy. Make sure that our offer is presented as follows: We are selling strength; reached effectively with EMS and the motivation of a personal trainer. Not the Miha-Bodytec device but the personal trainer is the most important selling points. The member will experience the benefits of the device when doing a trial session; but it is the individual attention of a personal trainer that is something additional we offer at BODYTEC and the member has to be made aware of this.

Guideline questions Some guideline questions to use when applicable: Explanation: “Inorder toadvise youbetter andideallygive youspecificanswers to yourquestions, canI first ask you a couple of questions?” Enquiries: “How did you find us?” or “Where did you hear about us?” “What do you know about EMS training? And about BODYTEC?” “Can I ask you what you do professionally?” “Which exercise/sports are/or have you been involved in?” Rhetorical question: “Great, andnow you wantto do something foryourself?” Open questions: “What exactly do you want to achieve?” “What exactly do you expect from this training?” “What kind of changes, improvements do you expect?” “How long have you been thinking about doing something for yourself?” “How much time have you given yourself to get strong/lose weight/have less pain etc.?” “Which is the best day/time for you to work out?” “Do you have any health conditions that we need to take into account?” “Do you have any specialrequests regarding the training?” 5.13. Buyer types There are two different types of buyers: The active buyer This person already knows about EMS or BODYTEC training. He/she either knows about the training or the device from previous experiences or the person gathered enough positive information from existing members, websites, media and research that he/she is already convinced. These people are very easy to deal with and the salesperson only has to confirm that they are at the right place to achieve their goals! The passive buyer These people don’t yet know why they should train at BODYTEC. You need to give them good reasons to use BODYTEC training rather than going to the gym. This is where the active sales talk begins. The salesperson needs to be able to build rapport with the person and to come across as professional, likeable and above all trustworthy! If a new person walks into the studio asking for more information about BODYTEC, try to hand over to the staff member with the most sales experience, if possible.

Sales talk Only give out information which could be important for the new member – never give all the information and advantages of BODYTEC at the beginning of a sales talk. People lose interest very quickly when getting too much information all at once. Rather try to figure out why the member is here (what do they care about) before you explain t h e BO D Y T E C trai ni ng m e t h o d . Use o p e n q u e s t i o n s to ga ther rel ev a nt information about the person! Example: “How can I assist you?” “What are you doing to keep strongand fit?” “What are your personal fitness goals?” Let the person talk about his/her exercise history, personal goals and if he/she has any health problems. Then explain why BODYTEC is the perfect training program for him/her and point out the main benefits of our EMS training focusing on his/her goals. Again, only emphasize the advantages which are beneficial for the particular person. It is important to build rapport with the person. If the potential member is a walk-in, then invite him/her for a trial training. It is necessary to experience the training rather than just talking about it! The AIDA sales formula supports you through the sales talk, starting from how to generate interest to successfully finishing the sale. A– Attention Attention of the potential member should be sparked. I – Interest The next step is to awake interest: the potential member gets curious and wants more information. D– Desire At this stage you give some advice on how BODYTEC can support the person to achieve his/her goals. A– Action You recommend the training and products which will be of benefit to this particular member. 5.14. Member retention Besides signing up as much trials as possible, it is also crucial to look at the member retention rate. In general, about 50% of our members should decide to renew their contracts (as is normal in the fitness industry as a whole) and it is always easier and cheaper to make sure that a member stays with us then finding new members. Methods to increase the member retention are:  The training should be a highlight for every member  Show that you care about the member – follow up on (family, job, personal

birthday wishes etc.)  Follow up about the training goals of the member – they might have changed  Contact the member (weekly) when he/she hasn’t booked their training  Body measurements – goal orientation  Actively monitor members and motivate him/her (better posture, lost weight etc)  Keep contact with members whose contract expired – personal birthday wishes Member retention is all about keeping your member happy, ensuring they’re satisfied with their purchase and the service you are providing. And how do you do that? By going back to basics and communicating with them. Our communication with your customers should be ongoing and not end when they’ve signed up our service. By continuing to communicate with our members via email, we’ll remind them that we’re still there for them if they need us. We need to communicate enough with them to let them know we value them as a member and haven’t forgotten about them. Besides weekly face-to-face communication in the studio BODYTEC is also communicating with the members from a brand’s perspective through monthly lifestyle & health newsletters. Furthermore, BODYTEC communicates through an automated BODYTEC member communication journey (regular emails, incl. a short survey to the member at certain points in their membership) which is detailed in chapter 6.

Chapter 6: BODYTEC Marketing 6.1. Introduction Since the start of the concept (2011), BODYTEC has gathered data of who its members are. In 2011-13 innovators joined our concept, followed by the early adopters. With BODYTEC and EMS training becoming more known in South Africa we are currently at the start of the early majority stage. However, since we are a niche brand not everyone is aware of our concept and technology and we are focusing our marketing efforts on brand awareness, acquisition and retention within our main target market. 6.2. BODYTEC target market BODYTEC’s purpose is “to make people stronger “, but WHO are those „people “? And WHY do they come to BODYTEC? People come to BODYTEC because they want to look, feel or get stronger. BODYTEC has a great variety of members; from the professional athlete to the “couch potato” who doesn’t exercise at all. The member can be subdivided into 3 categories:  People who want to look stronger: Aesthetic reasons (gain muscle, toning, lose cm’s, etc.)  People who want to get stronger: Performance reasons (cross training, injury prevention, etc.)  People who want to feel stronger: Health reasons (back pain, posture, age- related issues etc.) The age group of our members also varies from 18-85 years (See chart A1 on next page). However, members can train from 16 years onwards, provided they have written parental consent. There is no maximum age for EMS Training, as long as the person is still healthy. Furthermore, the average BODYTEC member is often time poor (family and work commitments). They see the benefits of BODYTEC (Technology, Time and Personal Training) as something they can’t get at conventional gyms. Lastly, the BODYTEC target market is from the middle to upper class LSM (living standard measure), which are LSM 9-10+ which represent 5, 3 million adults in South Africa. LSM 9: R18/20K minimum household income and LSM 10: from R27K minimum household income. Currently 69% of BODYTEC members are female. BODYTEC would like to see that number drop to 60%, as we don’t want to be seen as a women’s gym. Whilst a lot of marketing efforts are focused on attracting male members, it has remained a challengedthroughout BODYTEC’s existence.

Chart A1: Averageage groups percentage of BODYTEC members (Mar 2020) 23% of members: under 36 48% of members: 36 – 50 years 29% of members: over 50 6.3. BODYTEC’s core messages BODYTEC enjoys the advantage of being the original concept introducing EMS technology in South Africa. However, reaching and converting a varied target market becomes a challenge when trying to explain a new and complex concept in too much detail too soon. BODYTEC prefers to keep the overall messages clear and simple, with a focus on: 1) The key advantages of time saving and the innovative technology as that gets people into the studio. The 3rd benefit, personal training, is what keeps people in the studio, but we don’t talk about it in our core messaging as we would then compete with a huge personal training market and it would dilute our USP of “time saving technology”. 2) The purpose: Making people stronger Core brand messages: • Train smarter • Powerup yourworkoutin20minutes • Tech-intensified strength training. 20 minutes. Challenge yourself. • Welcometo a new fitness generation • 20 minutes a week to a healthier, stronger you • Maximum strength, Minimal time • Hustle, Bustle, Muscle

• Geton withit, Getstrongwithit • It’s nota discipline, It’s acommitment Samples of our advertising: 6.4. BODYTEC’s 3 points of contact Our experience tells us that multiple points of contact with potential members are necessary before they convert and decide to try it out or sign up. Hence our marketing efforts are centered around 3 potential points of contact to make sure members heard about us and read about us and/or saw us! 1. Potential members read about us: Various marketing activities initiated by BODYTEC give our concept exposure. The main platform here is our website. We primarily use our social media presence, digital paid advertising (Google & social media) and a monthly email newsletter to drive traffic to our website. In addition, our adhoc PR campaigns help us gain exposure on more traditional channels, ensuring people read about us by providing content for local or national publications. Print and online PR and marketing results in people reading about us.

2. Potential members hear about us: Word-of-mouth is a powerful tool. Happy members spread the word amongst friends and family. By giving our new members 2 free trial vouchers immediately after signing up, we make sure they not only talk about us to their friends, colleagues and family, but they can also encourage their loved ones to try BODYTEC using the free voucher. Your new members are your biggest PR assets. They will make sure everyone around them hears about us, so use them. 3. Potential members see us: Our studios are always situated in a retail space and visibility of what we offer is important. The main reason for this is that we want our members to see us. As we are offering a still fairly unknown technology, it can be difficult to explain to members what it is we do. By showing them what we do, we attract their interest. Being in busy convenience centres and having signs above our studios also helps to increase brand awareness. The three points of contact are crucial for you to make the business work and maintain the member base at the required level. At BODYTEC we:  Assist you in finding the right location (see).  Focus our marketing & PR (read) on building and maintaining the brand value and creating brand awareness.  Word-of-mouth (hear) follows naturally if great customer service is offered. A good training experience every time members set foot in our studios will result in them wanting to share this experience with loved ones. 6.5. Two types of marketing Marketing at BODYTEC is split two-ways: 1. Brand (or National) marketing Ongoing marketing done by the Support Office on a National level only, to build the brand overall Monthly marketing Fees (2,5%) are used for this Feedback is given monthly in franchise partner newsletter 2. Studio (or Local) marketing Ad-hoc marketing done by franchise partner on studio (neighborhood) level Budgets are decided on and paid for by the individual studio owners Marketing Initiative Form needs to be sent to the Support Office for each activity 1. Brand (National) marketing The main purpose of National marketing is: 1. Brand Awareness 2. Member Acquisition

The BODYTEC National campaign is split over various marketing components:  Digital marketing strategy incl. campaigns  PR-strategy  Brand Cooperation’s 1. Digital marketing strategy a) Website a. Blog & general content b. Optimization (monthly updates, SEO, ongoing improvements) c. Measurement (analysing web traffic sources) b) Social Media Ongoing social media content creation, daily engagement and growing the following on all channels: 1. Facebook (incl. individual local studio pages) 2. Instagram 3. Twitter 4. YouTube 5. Pinterest BODYTEC’s strategy is a single brand strategy with 1 brand page per platform. Individual Facebook & Google studio pages are managed via the Support Office only. Franchise partners and personal trainers can assist the overall social media strategy by liking, commenting & sharing posts regularly. Franchise partners can optimize their studios’ social media efforts by:  Getting reviews/check-ins on their Facebook location (studio) pages (encourage members & friends)  Sending studio specific content (images or videos of members or trainers) to the Support Office to post on their Facebook location (studio) page  Participating in Facebook/Instagram local studio advertising (quarterly campaigns) with additional budget targeted in the specific studio area(s) to the specific target market. c) Paid Advertising: Google  National/brand Google search ads are running continuously to capture audiences searching for relevant info.  Google display ads run on an ad-hoc, campaign basis.

Desktop Google ad landing page Mobile Google ad landing page A Google My Business (GMB) page is created for each studio and BODYTEC Support Office will also post on each of these studio pages regularly. Franchise partners can optimize their studios Google business pages by getting reviews on their Google My Business (studio) page (encourage members or friends). The more reviews are on the page, the higher Google will rank the business when someone does a Google search in your area. Make sure to get a written review and not just a star rating. GMB page example BODYTEC Gardens Example Google post Google Reviews d) Other Digital Marketing  Weekly Health & Lifestyle Blog posts Non-EMS specific content created for our website, which is shared on social channels and in newsletter to encourage website traffic (SEO).

 Monthly Member newsletter Plan-B Newsletter to members and anyone who subscribed online. The newsletter is lifestyle focused with articles on health, fitness, nutrition and BODYTEC news. Every new member gets the newsletter unless they unsubscribe via the opt-out option. e) Digital acquisition promotions (ad-hoc)  Ad-hoc promotions with specific theme to acquire new members. For example, the Black Friday campaign which consisted of a special offer sent out via newsletter, shared on social channels and promoted in-studio, with sign-ups and sales going via a special campaign landing page and payment platform. 2. PR-strategy An ad-hoc PR strategy is managed by the BODYTEC Support Office. A PR- campaign is usually a 2-month focused campaign targeted at a specific target market. Press releases are sent to (print/online) media publications and editors/journalists invited for free training in exchange for promoting the brand. 3. Brand Corporations & Partnerships BODYTEC has long term partnerships with brands with a similar target market for acquisition purposes as well as to build credibility for our brand. Men’s & Women’s Health Magazines with ad-hoc offers (since April 2018)  Annual subscription campaign  Regular exposure in both magazines  Event participation FNBWellness & eBucks rewardprogramwithongoingoffers (since April2018)  Special FNB Wellness App Offer (10-sessions and trial)  Regular Ad-hoc Deals on the FNB Wellness App  Special FNB eBucks Offer (10-sessions and trial)  Participation in FNB Wellness Days Woolworths WRewards VIP program with ad-hoc offers (since March 2019)  Special WRewards VIP Offer (trial & 6 months)

6.6. Marketing Team Organogram 2. Studio (Local) marketing The main purpose of studio (local) marketing is: 1. Member acquisition 2. Member retention Local marketing guidelines Local marketing is crucial to your business and the type or amount of local activities you want to do is up to each franchise partner. The local marketing section on the PnO system (franchise.bodytec.co.za) has some ideas of what you can do and examples of local initiatives from other studios are also shared in the monthly franchise partner newsletter for inspiration. It is important (and compulsory) to complete a Marketing Initiative Form on franchise.bodytec.co.za before launching any local marketing initiative. This way, the Support Office is aware of your activity and can assist you with artwork or ideas, and will be able to efficiently answer any questions around the initiative that may come through on our social media channels and/or main contact channels – very important!

1. Complete and submit the Marketing Initiative Form. Marketing Initiative Form 2. If artwork is needed (ads, flyers, pull-up banners, etc.), this needs to be specified on the form along with core message, sizing and material specs as relevant. 3. All design and printing costs for local marketing initiatives will be for the franchise partner’s own account and will be invoiced via the Support Office on the monthly ReimbursedExpenses invoice. 4. Work will only commence once approval of relevant quotes is received. NB NOTE: all design and printing MUST be done by BODYTEC Support Office to ensure consistent quality standards. Studios/franchise partners are NOT allowed to use their own suppliers at any time. Penalties will be charged for non-compliance without warning or discussion. Important timelines/lead times: 1. Artwork – 2-5 business days incl. 2 reverts. 2. Printing materials required for marketing purposes requires lead times of up to 10 -14 working days, especially if artwork is required. Do’s and Don’ts of local marketing  Budget for monthly local initiatives as part of your ongoing expenses in order to manage the costs  Read monthly newsletter as well as local marketing section on franchise.bodytec.co.za for ideas  Keep the marketing on-brand and run artwork/print through the Support Office or ask the Support Office to assist with anything else you need so they can provide you with the right materials (press releases, letters, vouchers including content in the right tone/language)

 Plan your marketing carefully and put a local marketing calendar together for initiatives you want to get involved in over 6-12 months (support team can assist with ideas as well as calendar)  Adhere to timelines so the work doesn’t have to be rushed or is delayed  Marketing is only successful when done regularly. An initiative might not seem to work immediately, but the ongoing exposure for your studio will pay off in the end.  Adjust your expectations (in terms of feet through the door) after one or two initiatives and or when not doing marketing regularly.  First prize is feet through the door, yet brand awareness is important too since potential members need multiple points of contact with the brand before they convert. Plus, your nearby competitor might be doing local marketing and you want to keep your brand front of mind.  Ask members for help with spreading the word (referrals) and reviews (Facebook/Google) to improve your local business ranking on Google search and increase your Facebook local page reach  DON’T design your own artwork, ever. You are welcome to do a mock-up of what you have in mind to be shared with the designer to create something similar. Planning well in advance is key for this!  DON’T forget to complete a marketing initiative form before launching any activities. A penalty will be issued without warning. It is important Support Office is notified of all initiatives, especially when dealing with online (social media) enquiries and comments. Social media guidelines BODYTEC’s strategy to achieve sustainable growth online and offline is guided by certain shared values that we live by as a company as well as individuals: Integrity: Being real Accountability: If it is to be, it’s up to me Passion: Showing commitment and drive Quality: Ensuring what we do, we do well Leadership: Serving others in the best possible way Collaboration: Sharing knowledge for the better good of our company Humour: Not taking ourselves too seriously as individuals These online social media principles are intended to outline how the values above should be demonstrated on the various platforms and to guide your participation in this area, both, when you are participating personally, as well as when you are acting on behalf of BODYTEC. It is important to always remember who we are (a representative of the brand) and what our role is in the social media community (to build the BODYTEC brand). BODYTEC encourages all of their business partners and associates (incl. employees) to explore and engage in social media communities at a level, which they feel comfortable. Have fun but be smart! The best advice is to approach the online world in the same way we approach the physical one – by using sound judgment andcommonsense, byadheringto theBODYTEC values.

Core values of BODYTEC social media: 1. Transparency: We don’t manipulate by creating “fake” posts designed to mislead followers or control conversation. 2. Protection of our members’ privacy and not expose any information without their consent of copyright, trademarks and other third-party rights on social media platforms 3. Respect: Make informed, appropriate decisions. 4. Responsibility in our use of technology. BODYTEC doesn’t associate itself with websites that deploy using fan’s or follower’s information. 5. Utilization of best practices, listening to the online community, and complying with applicable regulations. Just as with traditional media, we have an opportunity – and a responsibility – to effectively manage BODYTEC’s reputation online and to selectively engage and participate in all the online conversations that mention us. Any certified online spokesperson should represent BODYTEC in an online, official capacity when speaking on behalf of BODYTEC and follow the following principles: 1. Follow the BODYTEC values 2. Be mindful that you are representing BODYTEC 3. When in doubt, do not post 4. Give credit where credit is due and don’t violate others’ rights 5. Be responsible to your work 6. Remember that your local posts can have global significance 7. Know that the internet is permanent 6.7. BODYTEC best practise for social media More practical advice of how social media should be used: Less is more: BODYTEC believes in fewer posts, but post what is relevant. If we don’t have anything interesting to report, then we don’t post, but rather join into conversations (respond to tweets/posts). If fans “unlike” our page because we share too much irrelevant content, we will lose them forever. Language: Don’t use colloquial, abbreviated language (e.g. b4, gr8, C u soon etc.) and language and tone to be in line with the BODYTEC brand (informal, yet professional). Quotes: Only post quotes when they are exceptional (and not used by everyone) and they are re-designed into a specific BODYTEC branded lay out. Include the reference for each quote (i.e. who said it or where it was seen). Images: All imagery to be in line with the brand in terms of colours and style, and only licensed images with appropriate copyright/usage rights to be used. Studio specific images can be used (incl. owner, employees or members – with consent!) to make the brand more “real”.

Target market: Our main target market is between 35-50 and should relate to the posts/content. Content should vary to appeal to various audiences (new mums wanting lose weight, men wanting to build muscle, businessperson who travels a lot and has no time, women wanting to tone, etc.). 6.8. Retention Marketing 1. Member communication journey A member communication journey has been developed to increase brand information flow and retention. This communication platform also allows for ongoing feedback which will ultimately improve the brand as well as the customer service. The communication journey touchpoints include: 1. Trial checklist 2. Trial follow-up email 3. Welcome email 4. 1-month follow-up email 5. 3-month survey* 6. Expiry email 7. Re-sign email * 3-month survey is ongoing each time a new membership is signed 1. Trial checklist (Appendix 5) The trial checklist is automatically sent out when a trial is booked. The purpose of the trial checklist is for potential members to be informed of what is supposed to be expected in the trial session. This is standardized information and limits challenges that may be experienced by new trainers. 2. Trial follow-up email (Appendix 6) This email is not an automatic email and needs to be sent by each individual studio two days after a trial session. The tone of these emails is less formal and more conversational andallows themembers to providefeedback.

3. Welcome email (Appendix 7) An email is automatically sent when a member signs up and their information is entered into the client profile on ChiDesk. This email is standardised and officially welcomes the member to BODYTEC and informs the member of the ad-on value offering they are receiving. 4. 1-month follow-up email (Appendix 8) An automatic email that is sent 1 month into a membership. The email encourages members to train/ continue training, encourages them to share their excitement on social media. It also reminds them that they have 2 free trial vouchers that allows them to bring a friend to try out BODYTEC. Lastly, the email educates the members on EMS training. 5. 3-month survey (Appendix 9) A survey is automatically sent 3 months into a membership. The purpose of this survey is to provide a platform for members to offer their feedback which will ultimately improve service. It is also valuable in improving member retention and it also reminds members that we care. This email is also ongoing and is sent 3 months into every new membership. 6. Expiry email (Appendix 10) An automatic email that is sent out 1 month before a membership expires. The email reminds the member to renew their membership. It also acts as an icebreaker to bring up the topic between trainers and members. It also focuses on their goals and commitment and encourages the member to re-sign. 7. Re-sign email (Appendix 11) The re-sign email is automatically sent when a member renews their membership. The email thanks members for their support, reminds members of their ongoing commitment to their fitness journey and brings a smile to their face. Additional templates in the member communication journey include:  Birthday template (Appendix 12)  Training reminder (Appendix 13)  Cancellation of session (Appendix 14)  Confirmation of session (Appendix 15)  Rescheduling of session (Appendix 16)  EMS info request template (Appendix 17)  Contract information template (Appendix 18)  Absent member template (Appendix 19)

2. Member Surveys Annual detailed member surveys are conducted, and feedback shared with the marketing team for optimizing their strategy. 3. Promotions & campaigns Various ad-hoc campaigns and initiatives set up to check-in with the existing member base and create brand loyalty. Examples are the annual Men’s & Women’s Health subscription campaign or the monthly giveaways or a loyalty (100 sessions plus) campaign. 4. Secret Shopper program We also have a secret shopper program, where trial members will visit your studio, with a checklist that details an ideal trial session. During the trial the member will provide feedback on both their positive and negative experiences and note any trial standards that are not followed and communicate it back to the Support Office. Following this the franchise partner will receive a report from the Support Office on the members experience at the studio.

Appendix 1: Opening and closing checklist example Name: Opening - Closing Checklist Date: Pos Check Comment General 1 FOLLOW UP on trials/voucher requests and others 2 Make sure all emails are answered 3 music system in the office cupboard 4 office closed 5 poster stand inside/outside 6 put up shower mats 7 prepare training (training cards) 8 laundry cupboard open Electricity 1 inside light incl. showers/toilet off 2 equipment off 3 coffee machine off 4 computer off 5 air condition off Cleaning check 1 floor 2 work stations 3 showers - changing cubical - bathroom 5 reception counter + coffee counter 7 dishes (glasses, cups etc.) 8 kitchen 9 poster stand Refill 1 miha water spray bottles 2 water - coffee machine 3 shower gel and soap dispenser 4 toilet paper 5 flowers (fresh locking) 6 flyers poster stand/counter Laundry 1 trainings clothes and towels washed 2 towels washed 3 Miha equipment / jackets washed on Fri/Sat on a regular basis - to be done in the morning 1 check birthday list - (mon) 2 change towel in the bathroom (mon/wed/fri) 3 water plants if necessary (fri) 4 check broken clothes (mon)

Appendix 2: Health Screening form BODYTEC Health Screen Dear NAME, We are happy to hear about your interest in EMS training with BODYTEC® and in order to provide the most effective training results, we would need a few basic information about your possible contraindication to our training. After brining to our awareness that you are struggling with a medical condition, an injury or general medical concerns, we want to ask you to fill out the following information: Please list your current sports and physical activities (type of activity and frequency per week): What medical condition or injury have you been diagnosed with/are you currently struggling with: Whomadeyour diagnosis? Please list any surgeries and treatment attempts made about your medical condition/injury: Please list all symptoms you are currently experience that might prevent or impair you from training: For how long are you struggling with your current medical condition/injury? Thank you for providing this personal information, we will treat them with highest confidentiality and will contact you in the next 48 hours with recommendation about the further process on BODYTEC training.

Appendix 3: Medical Clearance form Medical ClearanceCertificate Dear General Practitioner, Your patient is required to receive medical clearance before participating in our personal training program at BODYTEC®. Please review and complete the attached documents, which consist of the following: 1. Patient identifying information and information authorization 2. Explanation of EMS training with BODYTEC® 3. Brief review of sport science research findings 4. Contraindications 5. Medical Consent 1. Patient identifying information and information authorization Patient Name Address Phone Number E-mail Address I hereby authorize my general practitioner (GP) to release information regarding my ability to participate in the BODYTEC® personal training programme. I authorize my GP to release information that is requested in the attached medical clearance certificate to BODYTEC studio name. Patient Signature Date Witness Date

Explanation of EMS training with BODYTEC® The muscle stimulation via electric current is generally described as electro-muscle stimulation (EMS). Since the introduction of technology enhanced training methods, such as EMS, as a new and more time efficient option for general and whole body strength training, a lot of research has been done to validate the effects of such training on the human body. At BODYEC®, we utilize this stimulus principle to enhance muscle strength training and strength endurance training, as well as to facilitate moderate muscle growth processes through muscular activity. Additionally, our training contributes to pain and symptom treatment, particularly at back and incontinence complaints through the increase of intra- and intermuscular coordination by activating the core muscles. We therefore use a combination of active bodyweight resistance exercises and faradic stimulation. This means, a corresponding electrical impulse is additionally applied from the outside on a deliberate contraction of the musculature (dynamic movement). So the muscle experiences a considerably additional voltage rise, an optimized increase of frequency and recruitment of its muscle fibres and therefore an even more effective settling of the stimulus. All training sessions at BODYTEC® are designed in short-intervals with a 4s contraction – 4s rest ratio and are always guided by a qualified personal trainer, using slow bodyweight movements only, which are gentle on joints and are never accompanied by any other external equipment or weights. The training sessions are designed for a maximum of 20 minutes and we recommend our members to do one training session per week. 3. Brief review of sport science research findings EMS training has been used for decades in the field of sports medicine and rehabilitation. Over the last 10 years EMS training has widened its spectrum of application to include general fitness and sports performance. Therefore a wealth of research information exists on EMS training amongst its different areas of application and has proven its scientific effectiveness. The results of most research across different age, training and population groups has shown positive results and the general assumption of sport and medical scientists is that EMS training is an effective and suitable alternative to conventional strength training. Some of the most significant research findings have shown positive training effects on muscle-mass (Kemmler & Von Stengel, 2013) and research from the German Sports University Cologne (Filipovic et al., 2011; Speicher et al., 2008) found significant improvements in speed and maximum strength after a relatively short period of EMS training (for athletes as well as for non-athletes). Research in the field of rehabilitation at the University of Bayreuth (Boeck-Behrens et al., 2002) has shown significant levels of pain relief in participants suffering from back pain. EMS training has further shown to be an effective training method for the elderly (Kemmler & Von Stengel, 2012) and for cardiologic patients, as research from Bad Oeynhausen has shown (Fritzsche et al., 2010). 4. Known contraindications EMS training with BODYTEC® has been scientifically proven to be effective for people of different age groups and different fitness levels. However, certain medical

conditions are known to be contraindications and EMS training with BODYTEC® is not recommended. There are three absolute contraindications for the training: (1) pregnancy, (2) pacemaker or other electrical implants and (3) acute illness, such as fever, viral infections or acute inflammatory processes. For some medical conditions, BODYTEC® requires a doctoral suitability assessment for the training, which needs to be assessed on an individual case to case basis. Some of the most common medical conditions* requiring assessment include the following:  Circulatory disorders; acute stroke; stent; thrombosis and cardiovascular diseases (i.e. arteriosclerosis)  Bleeding; bleeding tendency or haemophilia  Diabetes mellitus  Abdominal wall hernia or inguinal hernia  Severe neurological disorders (i.e. epilepsy, multiple sclerosis, amyotrophic lateral sclerosis etc.)  Acute operation (within 8 weeks, depending on individual case) Depending on the severity of the condition or predictable side-effects leading to a possible worsening of perceived symptoms, a GP is required to provide medical consent (please see below), before the training with BODYTEC® can be taken up or commenced. For any further questions, queries or required information about the EMS technology, technical details, research or training-related information, please contact BODYTEC® Head Office: Email: [email protected] Phone: 021 – 418 3479

5. Medical Consent Please be advised that my patient should be subject to the following restrictions in this fitness program: Under no circumstances should my patient do the following: I have discussed the foregoing restrictions and limitations with my patient and, with these specific restrictions, he or she has my consent to participate in the BODYTEC® personal training programme under guidance of a qualified trainer. Sincerely, (Please sign name here) Date: (Please print name here)

Appendix 4: Trial and indemnity form

Appendix 5: Trial checklist


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