Taking customer service to the next level.

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1 Newtown Athletic Club Employee Newsletter, January 2014 Welcome to Newtown Athletic Club s first employee newsletter, we proudly have named life changers chatter. Taking customer service to the next level. December 2013 Results (score average from 1-10) # Of Survey Participants 127 Likelihood to Recommend 7.9 Overall staff friendliness 8.5 Inside this issue: Medallia Results Comments New Employee Recognition Program: Life Changing Champions Kudos Korner 3 NAC Events & Promos 4 Employee Fun 4 Your name here. Life Changing Champion! 2 3 Back in September we held an all employee meeting to increase our communication throughout the club, connect our employees to each other, reinforce the importance of working as a team through a few team building workouts and most importantly, reinforce our mission to make lives better. As our members first point of contact it is important that you have all the information you need to deliver incredible customer service. This newsletter will serve as another avenue for communication; each issue will include information on NAC events, promotions throughout the club, a Kudos Korner sharing the good feedback we receive about you from our members- and a status update from our new Member Experience Management system, Medallia. Most people would consider the NAC to be part of the fitness industry, but if you were to ask Jim Worthington, our owner, he would disagree. He will tell you time and time again, we are really in the service industry. We will not be able to sustain or grow if we can t get customer service right. Medallia is going to take our service to the next level. It will allow us to hear the voice of our members so we can improve their experience based on direct feedback. Medallia is used by some of the top hospitality and service organizations, such as, Four Seasons, Nordstrom s, Macy s, Omni Hotels & Resorts, Lexus, and Lego, which are all known to be best in class because of their superior customer service! Our goal is to join these organizations and to be known as a leader in customer service; to...create the ultimate recreational, social and healthy lifestyle experience. It is important to realize that we all play a role in creating this ultimate experience. Whether you provide our members a clean and safe work out environment, coach them to achieve their fitness goals, and everything in between you are a life changer. (Hence the name of this newsletter!) We can build a beautiful facility and buy state of the art equipment, but it s you that makes us successful and it s you who will keep our business growing, most importantly, it s you who makes [our member s] lives better. I hope this newsletter serves its purpose to keep each of you informed, empowered, and appreciated. If you would like to contribute to this newsletter please reach out to me directly at kategolden@newtownathletic.com. All my best, Kate Katlyn Golden Director, People Operations

2 Life Changers Chatter Page 2 Medallia is only as powerful as the people behind it. In order to improve it is important for all employees to know where we stand in our members eyes. Each month we will post the results from the Medallia Survey in this newsletter. We have already started to make progress based on our member s suggestions. We will share the suggestions provided by our members and the actions we took to improve our member s experience. December Score Details (score average from 1-10) # Of Survey Participants 127 Likelihood to Recommend 7.9 Likelihood to be a member in months Value Received 7.3 Business Practices 7.4 Staff Friendliness Scores Overall staff friendliness 8.5 Front desk friendliness 9.1 Management friendliness 8.6 Housekeeping friendliness 8.9 Sales friendliness 8.8 Group exercise friendliness 8.8 Personal training friendliness 8.6 Child care friendliness 8.9 What do these numbers mean?! To the left you will find the average rating for each item on the survey. Congratulations to the front desk for having the highest friendliness score! We will utilize this information to set goals for each team to continually strive to improve our service. Below is a Report Card for the entire club; a big picture look at how well our club is doing compared to other clubs and other industries. The Actionable Loyalty Drives are the areas that we can improve have the quickest impact on our member s experience. We will set action plans to improve these areas and evaluate our progress quarterly. We have listed three goals for all of our employees that can make an immediate impact on these key aspects of the club: 1. Smile & say hello to everyone you walk by. 2. See trash in the club, in the parking lot? Pick it up. 3. Notice equipment not working? Tell a manager or fitness@newtownathletic.com. If we all chip in, we can make a difference. Member Satisfaction Metrics Overall experience 8.2 Facility 7.8 Staff Assistance 8.5 Equipment Selection 8.9 Equipment Condition 8.6 Locker Room/Showers 8.4 Gym/Club Cleanliness 8.7 Membership Services 8.4 Group Exercise 8.2 Personal Training Services 8.2 Child Care Services 8.3

3 Taking Action. The 3rd floor bathrooms in the Youth Plex need updating. Quick Fix: We will replace fixtures and stalls and give it a fresh coat of paint by February. Long Term: Our Architect, Hervey, will be designing a few options for us to possibly expand or re-capture the space allotted to the bathroom facilities. Estimated completion date: Spring Diversify Group Exercise class types and intensity levels. We offer more than 200 classes a week and have added 8 new classes effective January 6th. Also, all classes are now categorized into two levels (Beginner and Intermediate/Advanced) to better educate our members about the variety we offer. We also launched Fitness On Demand so members can take a class during off-peak times, all you need to do is pick, click & play! Parking lot problems with Parking With Small Children & 30 Year Spaces. Why do we have Parking With Small Children (PWSC) spots? We are a family club and want to ensure the safety of our children. Only 8% of our 700+ spots are allotted to PWSC. We randomly monitor the parking lots and we are as frustrated as our members, however we must rely on our member s, in good faith, to follow the guidelines. Need more showers in the ladies locker rooms. This is a large multi-million dollar project that will take place, but not until 2015/2016 when we build out the fitness facility to Penns Trail. For more information on the next renovation be sure to read your Monday messages from Jim Worthington! Teens and Tweens need their own space and/or programming. We do not have a solution for this problem so we will be holding focus group meetings at the end of January to hear directly from the teens and tweens themselves what they would like to see both indoor and outdoor at the NAC! Requests for free or cheaper guest passes. We are beginning to do monthly community events that allow guests to come to the NAC for free during a special event (i.e Winter Solstice). We are also going to look into providing free guests passes that could be used during limited hours and days (non peak hours, October-May Know the reason why. Why do we not offer a separate membership for the pool? Over 3 years ago, we surveyed our members to gauge their interests in the outdoor pool complex, 600 people responded and over 85% were in favor of the pool. However, the township would only allow us to build if we agreed to offer only one membership, citing traffic impact as their reasoning. Offering a separate membership is out of our control. However, having only one membership allows the cost of improvements and amenities (i.e. Both Big Build Projects: Fitness Center & Pool Complex) to be spread over the entire membership base. Both expansions together allowed us to grow our membership by 40%, reducing the increased cost per membership. Will we be building an outdoor lap pool? It is an option we are looking into, however it would not be until 2015/2016. The pool could be outside in the pool complex or we are thinking of building one on the outside pool deck next to the indoor pool; you would be able to swim back and forth without getting out of the water! Unfortunately, pools (for the most part) do not make money, they only cost money. Therefore, it is hard to secure a loan from the bank when we cannot show how we will produce enough revenue from the pool to pay back the loan. Also, since only about 2% of our members utilize lap swimming pools; we cannot justify a price increase to pay for the pool that would apply to all members. Why does the NAC cost more than other gyms in the area? We know the NAC is more expensive than other gyms in the area, but comparing the NAC to any local facility is like comparing apples to oranges. There is no club within 200 miles that offers the facility, programming and services that we do. We are one of the Top 5 Clubs in the U.S. and among all of the top clubs we are one of the least expensive. Many in the industry wonder how we can keep our prices so low. If a member takes advantage of only a few of the services, amenities and facilities we provide they are actually saving money in comparison to what they would pay separately for all these service at other facilities.

4 Newtown Athletic Club Employee Newsletter, January 2014 Page 4 Life Changing Champions. Your name here. Monthly Champion! The NAC s mission is to make lives better by creating the ultimate recreational, social and healthy lifestyle experience. Many of you make lives better on a daily basis and we want to take this opportunity to reward you for helping us achieve our mission. This new program will reinforce these behaviors and recognize your hard work. This will not be a typical recognition program where only your manager recognizes you. We are going straight to the source, the very lives you change, our members. The NAC s top priority is our experience and the incredible customer service you provide, so who better to nominate our Champions than those who receive this service? This program will acknowledge the extraordinary efforts made by our employees to fulfill our goals, values and mission of the NAC. It will serve as a formal avenue to highlight the excellence that exists in all areas across the NAC, but customer service, passion, and high standards of excellence are at the heart of this award. Our members will be invited to begin submitting nominations for our Champions this month! A page has been created on the NAC website where members can submit their nomination online. We will ask them to submit a few sentences describing why they are nominating a particular individual. Managers are not eligible to be nominated. This recognition program is designed for highlighting all of you who work on the front lines every day. An arbitrary selection committee made up of your colleagues and co-workers will review the nominations in order to choose one monthly Ultimate Life Changing Champion. Look for our first winner to be announced in February! Good luck to all of our life changers! Kudos Korner. We appreciate what each of our employees does on an everyday basis. The following employees have been mentioned in comment cards or the new Medallia survey over the past few months for being super star employees and each of them deserves KUDOS. If you see any of these colleagues around the club, be sure to congratulate or recognize them for a job well done. Thank you for investing in Group Ex! Andrea & Steffanie are doing phenomenal! We can see the difference already! Danielle I love Eileen from the Kid s Club! Makes me have a very relaxed and enjoyable workout! Danielle Thanks to Anne Marie Argentieri for helping to get my MyZone belt up and running! - Robin S. Thanks Denise for recommending Kim Carje as my personal trainer! She is the best! Very professional & knowledgeable. Also, very kind and non-judgmental. - Cynthia I just wanted to give a shout out to Jan in the Kid s Club. When I came back from my workout she had my son and 12 other kids playing a game. The kids were happy and engaged and Jan is so happy, loving and patient Anonymous Please give us more classes with Rebecca! She gets my heart rate up & She can DANCE! - June, Jackie & Janine Leslie s Zumba class is awesome! Great energy and enthusiasm - Ellen L. I just wanted to call and tell you that Meg makes my day when I see her Monday nights. She always makes me smile. Keep her! Dan Love Kathi s Pilates class good variety & guidance. Ellen L.

5 Wednesday, Jan 22: Community Zumba Day (Guests are Free!)

6 EMPLOYEES ONLY: $20 Donation to Participate Can t attend? Donate any denomination (even $1) at the Program Desk or Front Desk. Writing a check? Make payable to Augie s Quest for your tax deduction.

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