Lifetime Fitness 2012 Annual Report Download - page 17

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Pre-Opening Phase. We generally begin selling memberships up to five months prior to a center's scheduled
opening. We market to prospective members during this period primarily through a portfolio of broad-reach and
targeted consumer and business-to-business media as well as referral promotions. To further attract new members
during this period, we occasionally offer lower pre-opening joining fees.
Grand Opening Phase. We deploy a marketing program during the first month of a center's operation that builds on
our pre-opening efforts. The campaign culminates with households in a strategically designated trade area - based on
local access considerations, housing density and travel patterns - receiving targeted advertising. Simultaneously, new
members receive special invitations to post-grand-opening activities designed to assist them in their orientation to
the center.
Membership Growth Phase. After the grand opening phase, marketing activities and costs generally decrease as
drive-by visibility and word-of-mouth marketing become more influential. The goal of each center is to achieve
consistent membership growth until targeted capacity is reached. Once the center has reached its targeted capacity,
marketing efforts aim to keep membership levels stable and grow other in-center services. Marketing plans for each
center are formulated on an annual basis and reviewed monthly by marketing and center-level sales employees. At
monthly intervals, a comprehensive situation analysis is performed and adjustments are implemented, as necessary,
to ensure sales and retention objectives are meeting the goals of the center's business plan.
Ongoing Member Retention Phase. When a new member joins, we initiate a comprehensive connectivity and
engagement process aimed at helping them to achieve their total health objectives, athletic aspirations and fitness
goals by engaging in their areas of passion. We are in the position to help them achieve this by providing the best
places, people and programs of exceptional quality and value. We have created dozens of specific interest areas,
along with connectivity programs, including, but not limited to, our dedicated member website, myLT.com; our
periodic offerings of various athletic and social events; access to national and local Member Advantage discounts, a
program designed to provide our members with discounts at select local and national partner businesses; and access
to myLTBuck$, a member loyalty or rewards program.
Leveraging the LIFE TIME FITNESS® Brand
We continue to build our brand nationally and internationally through expansion of our portfolio of centers, and by
delivering high-quality products and services in the areas of education, exercise and nutrition.
Centers. As of February 28, 2013, we operated 105 centers in 28 major markets in the United States and Canada
under the LIFE TIME FITNESS® and LIFE TIME ATHLETICSM brands.
Education. Our educational initiatives include in-center classes and seminars; a vast array of online content (at
lifetimefitness.com, experiencelife.com, revolutionaryact.com, myLT.com, myhealthcheckonline.com and
lifetimeendurance.com), including articles, videos, blogs and e-newsletters; social media offerings; and our award-
winning magazine, Experience Life®, which is distributed to more than 650,000 of our members. The publication,
with a total circulation of over 700,000 copies, is also available to a general consumer audience by subscription and
on newsstands nationwide. Published 10 times a year, Experience Life® offers approximately 90 full-color pages of
forward-thinking health and fitness wisdom, including articles on nutrition and healthy eating, health and wellness,
exercise and active adventure, stress-management, personal development and many other quality-of-life topics. In
addition, each issue includes approximately 30 pages of national advertising. The magazine is also available in a
digital edition, and launched its first mobile app, “101 Revolutionary Ways to Be Healthy,” in 2011. In continuous
publication since 2001, Experience Life® is considered by many health experts to be one of the country's leading
health and fitness titles, and has earned dozens of national and regional awards, including two gold Folio awards and
numerous top prizes from the Minnesota Magazine and Publishing Association.
Athletic Events. We produce athletic events for members and non-members, both inside and outside our centers. The
primary focus has been on endurance activities, including running, cycling and triathlon. In 2012, we produced over
100 events, serving over 90,000 participants. Our events range from entry level to ultra endurance events and draw
from local, regional, national and international markets. Our larger events include triathlons such as the Life Time
Tri Minneapolis and Life Time Tri Chicago, as well as the iconic Leadville Trail 100® Mountain Bike “Race Across