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ATTRACTING NEW MEMBERS

By using Addressable Minds™

Developed by: iNovum

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AGENDA

The business Vision

Addressable Minds… what is it

Addressable Minds results from the Curves Study

How results are used

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Business Issues

To prosper in the present economy Curves Owners must always be on the look out for new ways to accommodate and engage their members

Curves owners need faster access to useful consumer insights in developing marketing messaging and programs, products and services.

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BUSINESS VISION

The Vision – Increase lasting memberships at Curves The 2-step Vision

Step 1: Attract prospects to come in to your club by using optimum message appeal to the general marketplace through

Web coupons Mailing Value Coupon packs Web site landing page E-mails In person

Step 2: When the prospect comes in, lead the discussion with those Curves features that appeal most to each individual:

Use a simple approach to tell you EXACTLY what to say to each individual

Dr. Howard Moskowitz.Addressable Minds Inventor, honored by the scientific community,...

•Is the President of Moskowitz Jacobs Inc. and holds a Ph.D. in Experimental Psychology from Harvard University.

•Won two of the most prestigious awards in marketresearch

•2005 Charles Coolidge Parlin Marketing Research AwardThe “Nobel Prize” of Market Research, received only

by the pioneers of market research. Recipients include Arthur Nielsen, George Gallup, Michael Porter, David Ogilvy and Philip Kotler.

•2010 Walston Chubb Award for Innovation across all sciences, Sigma Xi, The Scientific Research

Society, international Awarded for Mind Genomics: The science underlying the technology discussed in this presentation

About Addressable Minds Addressable Minds is a scientific, actionable form of “predictive

consumer intelligence” accurately defining consumer attitudes and preferences both stated and unstated.

It has been described by Malcolm Gladwell and others as discovering the “DNA of the Consumers Mind”.

This patented science created by Dr. Howard Moskowitz, author of “Selling Blue Elephants” (Wharton Press) and the Wharton Business School has achieved critical acclaim and financial success across:◦ product design and development, ◦ consumer messaging,◦ more effective consumer engagement physically and digitally.

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ADDRESSABLE MINDS

Psychographic Segmentation - Social Class - Lifestyle Type - Personality Type

Behavioral Segmentation - Product Usage - Brand Loyalty - Attitudinal

Demographic Segmentation - Age - Gender - Income

Addressable Minds

Cuts across traditional segmentation & detects hidden preferences

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WHAT CAN THIS SCIENCE OF ADDRESSABLE MINDS DELIVER TO

CURVES?

Three Phased Approach to reach practical implementation to deliver business value

Phase IIIImplement Live

Use with Customer &

Prospect Interactions

Phase IIDevelop Use of

Addressable Minds

Phase ICreate

Addressable Mind Segments

The next several charts will describe what we uncovered about Addressable Minds with prospective Curves members in Phase 1

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CREATE ADDRESSABLE MINDS MESSAGING FOR POTENTIAL MEMBERS

DEVELOP SURVEY QUESTIONS

Potential Members

ANALYZED SURVEY RESULTS → Addressable Minds

INTERNET IdeaMap™

SURVEY

IDENTIFY TARGET MARKET

Total Sample

Seg 1 Self Driven Online

Banking Seekers

Seg 2 Technology/

High Security Seekers

Seg 3 Collaborative

Online Seekers

Seg 4 Personal Touch with Technology

Base Size: (267) (105) (50) (59) (53) Constant: 31 34 28 31 26

OC1 Connect online in 'real time' with a customer rep via instant messaging, voice over IP or video conferencing via your computer 0 2 2 5 -13

OC3 Faster loan application process…work in real time online with a loan officer 0 0 -8 12 -8

OC4 Our bank's customer service reps will help you browse and use our online banking services -1 0 -6 10 -10

OC2 Use our online tool to find and schedule at your convenience an online working session with an expert such as investment broker, insurance agent, and/or loan officer -3 1 -11 6 -12

ON3 We will answer all your requests in 'real time' by email, instant or text messaging 1 7 -11 3 -1

ON4 We offer 'On demand' status reports for services requests (e.g., loan application) delivered to you via e-mail, text or instant messaging

1 6 -4 -3 0ON2 No more paper mail... We will send you statements and images of

transactions securely by email -2 5 -17 -5 2ON1 We allow you to pay bills securely using your mobile devices (cell

phone, PDA, Blackberry, etc.) -4 2 -13 -9 -2

BR3 We offer a bank-issued smart card so we can recognize you entering the branch and process your needs faster 4 2 6 -3 13

BR4 Choose a secure eye or finger security scan to identify you immediately in-branch and at ATM 4 3 10 -1 3

BR2 We have the most secure biometric system that identifies you as you enter the branch so we can process your needs faster 2 -1 8 -5 6

BR1 We will recognize our customer's mobile phone signal when entering a branch so we can recommend appropriate bank products, promotions and special services -4 -3 -6 -11 2

Online Collaborative

Online Other

In-Branch Recognition

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

MARKET SEGMENTATION TYPING ENGINEMARKETING PHRASES

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AN INITIAL SURVEY WAS DONE

A survey to serve as a demonstration of the approach

Sufficient to show the power of the method

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CURVES SURVEY(1 OF 2)

Survey run from December 6th 2010 to December 7th, 2010 :◦ Population of women of all ages across the US

Gathered key marketing and advertising messaging from Curves website as well as from websites of peer fitness clubs:◦ Butterflylife◦ Contours express ◦ Fitnessclubforwomen ◦ Ladyofamerica ◦ Shapexpress◦ Womensfitnesscenter

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CURVES SURVEY(2 OF 2)

380 Individuals responded

Assessed two major aspects of messages◦ Does it convince a prospect to join Curves?◦ How does it make a prospect feel?

Data reveals the mind-sets of respondents across the United States, as well as ‘what works, what doesn’t’

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WELCOME PAGE

HOW LIKELY ARE YOU TO JOIN CURVES

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SELECT THE EMOTION THAT YOU FEEL

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RESULTS

WHAT CONVINCES?

WHAT DRIVES FEELINGS?

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TOTAL PANEL: WILLING TO JOIN A CONVENIENT FACILITY WITH FRIENDLY ATMOSPHERE AFTER A MONTH-LONG TRIAL. LIFESTYLE LECTURES A TURNOFF

Base Size 380Propensity to Join 361 Month Free Trial Membership 5Workout at your convenience… 24 X 7 keyless entry to a security monitored area 4Comfortable and friendly atmosphere for women of all ages and physical abilities 4Burn up to 500 calories with our 30-minute workout 3We compute your workout data… see progress reports with your muscle strength, calories burned and how close you are to reaching your goals 3

We give you a full body, highly efficient workout… see how it’s worked for over 4 million women. 3

Our fitness Instructors are knowledgeable about nutrition as well, and can recommend effective diet and supplement choices 3

State-of-the-art personalized coaching system gives you moment-by-moment feedback...find your motivation and keep it 3

10,000 locations around the world for the busy career woman 3All the support you need to get the results you want 3Offers several nutritional programs to provide you the best fit for your busy lifestyle. 3Offering a variety of classes, lectures and training, we will educate and motivate you to exercise and maintain a healthy lifestyle -1

1 Week Free Trial Membership for you and a friend -1Tune into 20-minute seminars and lectures... quickly learn simple steps to achieving a balanced life -2

It's not your mother's gym anymore -3

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THE TOTAL PANEL’S INTEREST IS VERY DIFFERENT FROM THAT IN EACH OF 3 IDENTIFIED SEGMENTS

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Conditional Formatting : Winners >+5 in green & Losers <-5 in redTotal

Sample

Segment 1

Busy Career

Segment 2

Just as Iam -

Segment 3

Result-Oriented

Base Size 380 102 84 194Propensity to Join 36 40 47 30

1 Month Free Trial Membership 5 -2 7 7Workout at your convenience… 24 X 7 keyless entry to a security monitored

area 4 -4 5 8Comfortable and friendly atmosphere for women of all ages and physical

abilities 4 -4 13 4We compute your workout data… see progress reports with your muscle strength, calories burned and how close you are to reaching your goals 3 2 -12 11

Burn up to 500 calories with our 30-minute workout 3 -4 9 5We give you a full body, highly efficient workout… see how it’s worked for over 4

million women. 3 -2 -6 10Our fitness Instructors are knowledgeable about nutrition as well, and can

recommend effective diet and supplement choices 3 -3 8 5We offer a fun and safe place for your children while you work out 0 6 -5 -1

Online meeting spot for our members... additional support when you need it from members around the world — 24 hours a day, 7 days a week 0 6 -8 0

Our program integrates the traditional components of weight loss, nutrition and exercise - plus adds psychology, beauty and fashion 0 -1 -14 6

Offering a variety of classes, lectures and training, we will educate and motivate you to exercise and maintain a healthy lifestyle -1 -3 2 -11 Week Free Trial Membership for you and a friend -1 -4 -5 3

Tune into 20-minute seminars and lectures... quickly learn simple steps to achieving a balanced life -2 5 -6 -3It's not your mother's gym anymore -3 10 1 -11

DIFFERENT WOMEN – DIFFERENT APPROACH

Busy Career

27%

20

Just as I am

22%Results-oriented

51%

Messaging for one isn’t necessary going toappeal to the other…

BUSY CAREER WOMEN (SEG1) –INTERESTED IN APPROACH THAT FITS THEIR BUSY LIFESTYLE. NOT INTERESTED IN PROGRAMS BEYOND BASIC

WORKOUTS.

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Conditional Formatting : Winners >+5 in green & Losers <-5 in redTotal

Sample

Segment 1

Busy Career

Segment 2

Just as I Am

Segment 3

Result-Oriented

Base Size 380 102 84 194Propensity to Join 36 40 47 30

10,000 locations around the world for the busy career woman 3 10 -4 2It's not your mother's gym anymore -3 10 1 -11A weight loss facility exactly for you 2 8 1 -1

All the support you need to get the results you want 3 7 4 0We offer a fun and safe place for your children while you work out 0 6 -5 -1

The 30-minute fitness center... the smart workout 0 6 -11 2State-of-the-art personalized coaching system gives you moment-by-moment

feedback...find your motivation and keep it 3 6 3 2Online meeting spot for our members... additional support when you need it from

members around the world — 24 hours a day, 7 days a week 0 6 -8 0Tune into 20-minute seminars and lectures... quickly learn simple steps to

achieving a balanced life -2 5 -6 -3Complete workout experience in a clean environment with no complicated

machines 3 4 -4 5It's all about you... 30 minutes at a time 2 4 -1 2

Workout at your convenience… 24 X 7 keyless entry to a security monitored area 4 -4 5 8

Comfortable and friendly atmosphere for women of all ages and physical abilities 4 -4 13 4

Offers a wide range of fitness options including classes such as aerobics, yoga, pilates, self-defense and more 2 -6 5 5

A gym that combines strength training and cardio… a workout that works your entire body 2 -8 1 8

JUST AS I AM WOMEN (SEG2) – INTERESTED IN NURTURING PERSONALIZED APPROACH. INTIMIDATED BY COMPETITIVE ENVIRONMENT & TRADITIONAL

WORKOUTS.

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Conditional Formatting : Winners >+5 in green & Losers <-5 in redTotal

Sample

Segment 1

Busy Career

Women

Segment 2

Just As I Am

Segment 3

Result-Oriented Women

Base Size 380 102 84 194Propensity to Join 36 40 47 30

Comfortable and friendly atmosphere for women of all ages and physical abilities 4 -4 13 4

Supervised circuit workouts... our instructors will make sure you have a proper form so your time on the circuit is effective 1 -4 10 -1Burn up to 500 calories with our 30-minute workout 3 -4 9 5

Our fitness Instructors are knowledgeable about nutrition as well, and can recommend effective diet and supplement choices 3 -3 8 5

1 Month Free Trial Membership 5 -2 7 7Members have personalized meal plans created and tailored to their nutritional

needs 3 0 6 3Our active online community… find and share healthy recipes with other

members around the world 3 3 6 1Tune into 20-minute seminars and lectures... quickly learn simple steps to

achieving a balanced life -2 5 -6 -3Online meeting spot for our members... additional support when you need it from

members around the world — 24 hours a day, 7 days a week 0 6 -8 0Look Great, Loose Weight and get the results that you want with easy to use

equipment 3 -2 -9 10Gives you results that last 1 -1 -11 7

The 30-minute fitness center... the smart workout 0 6 -11 2We compute your workout data… see progress reports with your muscle strength, calories burned and how close you are to reaching your goals 3 2 -12 11Our program integrates the traditional components of weight loss, nutrition and

exercise - plus adds psychology, beauty and fashion 0 -1 -14 6

RESULT-ORIENTED WOMEN (SEG3) – INTERESTED IN CUSTOMIZED APPROACH TO REACH THEIR FITNESS GOALS. INDIFFERENT TO

GENERALIZED ADDITIONAL INFO.

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Conditional Formatting : Winners >+5 in green & Losers <-5 in redTotal

Sample

Segment 1

Busy Career

Segment 2

Just As I AM

Segment 3

Result-Oriented Women

Base Size 380 102 84 194Propensity to Join 36 40 47 30

We compute your workout data… see progress reports with your muscle strength, calories burned and how close you are to reaching your goals 3 2 -12 11We give you a full body, highly efficient workout… see how it’s worked for over 4

million women. 3 -2 -6 10Look Great, Loose Weight and get the results that you want with easy to use

equipment 3 -2 -9 10A gym that combines strength training and cardio… a workout that works your

entire body 2 -8 1 8Workout at your convenience… 24 X 7 keyless entry to a security monitored

area 4 -4 5 81 Month Free Trial Membership 5 -2 7 7

Gives you results that last 1 -1 -11 7Our instructors can custom tailor an exercise routine to address any physical

limitations you may have, or to target specific "problem areas" 1 3 3 0Offering a variety of classes, lectures and training, we will educate and motivate

you to exercise and maintain a healthy lifestyle -1 -3 2 -1A weight loss facility exactly for you 2 8 1 -1

We offer a fun and safe place for your children while you work out 0 6 -5 -1Supervised circuit workouts... our instructors will make sure you have a proper

form so your time on the circuit is effective 1 -4 10 -1Tune into 20-minute seminars and lectures... quickly learn simple steps to

achieving a balanced life -2 5 -6 -3It's not your mother's gym anymore -3 10 1 -11

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THE PANEL’S STRONGEST EMOTION IS HOPEFUL

Intimidated Healthy Attractive Hopeful Energized

IntimidatedOur fitness Instructors are knowledgeable about nutrition as well, and can recommend effective diet and supplement choices 6 7 5 8 0

Tune into 20-minute seminars and lectures... quickly learn simple steps to achieving a balanced life 6 6 5 8 2

Simple online supplement assessment tool… develops a customized supplement program just for you 6 4 4 12 1

HealthySupervised circuit workouts... our instructors will make sure you have a proper form so your time on the circuit is effective 3 9 3 10 3

It's not your mother's gym anymore 4 9 3 6 4

Look Great, Loose Weight and get the results that you want with easy to use equipment -1 8 5 9 5

Works every major muscle group… a total body workout 4 8 0 12 4

AttractiveOur instructors can custom tailor an exercise routine to address any physical limitations you may have, or to target specific "problem areas" 2 4 6 12 2

Complete workout experience in a clean environment with no complicated machines 2 3 6 9 6

Hopeful

Offers several nutritional programs to provide you the best fit for your busy lifestyle. 3 6 2 14 1When you join, you will be given a personal fitness assessment and exercise orientation with one of our certified staff 3 4 2 13 3

Comfortable and friendly atmosphere for women of all ages and physical abilities -1 7 5 12 5

1 Week Free Trial Membership for you and a friend 3 3 4 12 5Offers a wide range of fitness options including classes such as aerobics, yoga, pilates, self-defense and more 3 5 3 12 5

Workout at your convenience… 24 X 7 keyless entry to a security monitored area 4 3 2 12 5

It's all about you... 30 minutes at a time 1 6 4 12 4

EnergizedWe compute your workout data… see progress reports with your muscle strength, calories burned and how close you are to reaching your goals 2 3 4 10 8We adjust to your body's endurance level so you stay continually challenged and achieve your potential on every machine, during every workout. 3 7 4 6 8

1 Month Free Trial Membership 3 2 5 10 7

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USING ADDRESSABLE MINDS AT CURVES

You meet a potential fitness club member.How do you communicate the benefits of

joining Curves?

How to uncover mind-set to correctly classify a person who you’ve never met

before?

Knowing the specifics guides you…what to say and do

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INTRODUCING CUSTOMER ENHANCEMENT TOOL

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INTRODUCING CUSTOMER ENHANCEMENT TOOL

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INTRODUCING CUSTOMER ENHANCEMENT TOOL

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INTRODUCING CUSTOMER ENHANCEMENT TOOL

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SALES APPROACH TO BUSY WORKING WOMEN

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SALES APPROACH TO JUST AS I AM WOMEN

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SALES APPROACH TO RESULTS ORIENTED WOMEN

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ON LINE EXAMPLE

Typing Tool Link

USING ADDRESSABLE MINDS 1- Identify prospect 2-Come to Curves 3- Close with the right

message

Addressable MindsSales Process

Prospect at Home is identified by

segment membership

1 – Print customized coupon at home

Prospect comes to Curves – presents customized coupon with segment identified on coupon

2 – Come to Curves

3 - Right Messages to close the sale

Staff uses the right messages with that prospect to close the sale

Three Phased Approach to reach practical implementation to deliver business value

Phase IIIImplement Live

Use with Customer &

Prospect Interactions

Phase IIDevelop Use of

Addressable Minds

Phase ICreate

Addressable Mind Segments

Increase revenue by adding loyal membership

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CONCLUSIONS

The use of Addressable Minds by Curves identifies three distinct segments with each segment having different hot buttons

Curves owners can adapt the use of this technique into their business to increase membership & improve retention

We should look at using the first study results

Additional work needs to done to do a complete Curves implementation