It Pays Too Be Healthy! 2009

Rewarding People For Becoming and Staying Fit

• Vision: Sweat Equity Network provides core motivation in individuals to trigger and sustain healthy behaviors…

• Provides consumers with a end to end healthy motivational system, which fuses healthy behaviors, activities into relevant and meaningful rewards…

• Aligns too corporate wellness strategies beyond traditional incentive models

• Align with all fitness chains as a retention and loyalty strategy

• Become a powerful marketing channel for all healthy and active lifestyle brands seeking deeper penetration and segmentation

Universal Healthy Living Incentive Platform

• SEN captures, converts and monetizes any biometric data from body sensing technology i.e. Polar Heart Monitors, Garmin, Timex, BodyBugg and converts inputs into cash

• SEN provides consumer engagement strategies which energizes, motivates, connects and rewards healthy living practices

• SEN integrates with all active healthy behaviors

• SEN is a Partner of Microsoft Health Vault

Consumer Value Proposition

• It’s free, fun, rewarding, social, and personal…

• SEN engages members with a compelling value proposition: earn “Meaningful Value” for becoming and staying fit!

• SEN engagement strategies include: motivational techniques, virtual events, challenges, achievement status levels, which builds recognition, and self esteem. (keys to personal adoption)

• SEN concept of “sustained engagement” applies incentive logic, with proven behavioral patterns. The longer you stay, the greater the personal vesting in the system

The Sweat Equity Network Platform

• The platform consist of: a social interface, where consumers actually earn for SN activities i.e. contents, contributions and achievement and status

• Business rules engine that allows sponsors to define campaign, offers and incentives to fit their business goals

• A rewards suite: 500 national brands 6,000 merchandise choices, including dining, concerts, travel, hospitality and 1700 unique experiences

Corporate Wellness Channel • The vast number of CWP

incentive approaches are one dimensional and fail to deliver more then an anticlimactic acknowledgement…

• SEN is the first and only sustained motivational engagement strategy which ignites interest, and sustains it through a comprehensive understanding of motivational dips, triggers and reuptakes

Fitness Channel

• Fitness Chain Operators share a population base of 40 million people

• Fitness chains rely on competitive pricing, strategic locations and value-added features. SEN provides fitness chains a way to reward without the full burden of funding

• As advertising has emerged in gyms, these same advertisers will be eager to get closer to highly desirable consumers

• SEN ability to drive business to gyms comes from the companies’ virtual event programs…

• As fitness technology converges and simplifies SEN has the ability to integrate performance data from virtually all devices

Active Lifestyle and Healthy Brands become “Earn Partners” in the SEN equation

• Airlines identified the typical business traveler experience, which included air, car rentals, hotels, dining, and activities.

• Synergistic “Earn Partners” benefited from bundling offers

• SEN provides active living brands with powerful tools to reach emerging audiences through early engagement strategies

• The new healthy living incentive media transcends all existing market offers

• SEN can drive specific traffic without violation of HIPAA compliance by linking to HRA data from corporate wellness

Engaging active lifestyle brands in the prevention discussion…

• In 1980 Cause Related Marketing drew it’s first breath, as brands which linked directly to social initiatives gained in public favor, and market share as brands with a conscious out performed those without…

• The 2010 version of CRM will converge brands and consumers into a delta of personal support, recognition and incentive in return for brand loyalty, culminating in a population to happier healthy lives.

• The issue with incentives is the funding requirements

• By applying free market principles, funding can be accomplished via an alternative advertising model, which promotes brand and individual healthy living

• Currently there are tens of thousands of active lifestyle brands in the marketplace, offering fitness, diet, nutrition services, apparel, supplement etc

End to End Data Feeds

• Biometric Data– Cardio, Running, Cycling, Swimming, Walking, other– Time, heart rate, distance, calories, steps– Sedentary, non-fit, fit, athletic profiles– Example:

• A cardio workout with a minimum distance and minimum time yields 100 points• A fitness workout with a minimum of calories burned yields 100 points• A minimum number of steps during a day yields 100 points

• Incentive Data– Non-physical activities, such as HRAs, EAP, – Example:

• Participation in an HRA yields 5,000 points• Contributions during a month to the online community yield 250 points

• Transactional Data (POS)– Any currency based transaction– Membership dues, personal training sessions, massages, physical therapy, pro shop

purchases, etc..– Example

• Membership Dues, 3% converted into points• Pro Shop Sales, 5% converted into points• Personal Trainer Session, 10% converted into points

The Rewards System

• Data Feeds– Biometric for physical

activities– Incentives for non-physical

activities– Transactions

• Business Rules Engine– Configuration to drive desired

behavior– Flexible across user profiles

• User Profile– Fit Score

• Redemption Systems– Travel, hospitality, concerts,

dinning – 500 national brands, 6000

items– 1700 unique experiences

Delivery Internet 2.0

• Engagement and retention are key challenges when it comes to offering fitness and wellness programs. People need the inspiration to engage with these programs, and ongoing motivational and educational support to stay with the program and succeed.

• The Sweat Equity Network is a comprehensive loyalty marketing, retention and rewards platform specifically designed to address the needs for corporate wellness programs and the healthy living market.

• It uses viral social interaction to build a vibrant online community to inspire, motivate, educate, support and share the experience.

Virtual Events

Programs Driving Membership and Traffic

• Activity uploads– Members visit often to update data

• Rewards– Visits to check rewards status, redemption

• Sub-communities– Special interest sub communities, e.g., for

running, cycling, swimming, weight loss, Yoga...• Virtual Events / Challenges

– Spark interest in the site, drive traffic to check status, chat with friends, etc.

• Community, blogs, articles, experts, groups, friends, pictures, videos

– Online social media - user generated content• Facebook interface

– Bridge and FB plug in• Sweat Equity Mall

– Special offers of endorsed products / services

Programs & Rates

Projected Site Statistics

• Members visit the site 3 -4 times / week to upload activity data, participate in events, connect with friends, read blogs, check rewards status, etc.

• Membership growth driven by B2B and B2C marketing programs• Go live in Q4 2009

Coalition PartnerCommercial Fitness

Coalition PartnerCorporate Wellness

Title Sponsor

• One year exclusive contract• permanent ‘sponsored by’ top

page brand • 10% of tower banner ad• 12 email newsletters

‘sponsored by’• 4 banner ads in e-newsletter• 2 virtual events• 4 opt-in direct mail campaigns• Co-sponsor for all members

• $25k / month, 1st year contract for 18 months

Event Sponsor

• Minimum 1 month contract• Virtual Event• ‘sponsored by’ brand – on

event page and home page• 25% of tower banner ad• Weekly (4) email newsletters

‘sponsored by’• 4 banner ads in e-newsletter• 1 opt-in direct mail campaigns

to participating members• Sponsor for participating

members

• $25k / month

Advertising

• Tower Ad – Home Page– CPM $3, minimum $250

• Tower Ad – Sub Community– CPM $3, minimum $250

• Banner Ad – Sub Community– CPM $5, minimum $500

• Mobile Banner Ad– CPM $3, minimum $250

• Sweat Equity Mall (not displayed here)

– Minimum $500 / month

Business Rules Engine

• Converts biometric data feeds into points

• Applies user profile• Applies thresholds• Checks limits• Manages points accounting• Customization

User Distance Time Points

Sedentary NA NA NA

Non Fit 1 mile 15 min 100 pts

Fit 3 miles 30 min 100 pts

Athletic 6 miles 50 min 100 pts

Points = Business Rule (Sponsor, Activity Type, Upload Mode, Actual Data, User Profile)

III. Consumers Redeem …

I. Partners / Customers Underwrite Rewards

II. Consumers Earn Reward Points

Points / Rewards

Consumer

Corporate WellnessProgram

Invite

Marketers Coalition Partner

Visa Gift CardCash

Fitness MerchandiseTravel, Hospitality

Visa

POS PurchasesTransactions

Biometric Datae.g., HR, time, distance

How SEN Works

Incentivese.g. HRA, EAP, Community

Financial Strategy Strategy

• The SEN model sells incentive points to employer groups, fitness chains, active lifestyle brands and coalition partners. The classification of earn vs. burn partners provide brands with powerful new ways to reach their audience

• SEN business model enables it to scale quickly as a pay as you go model,

which enables organizations to make decisions quickly with little to no risk. Companies define their own unique business rules and reward criteria

• SEN charges a management fee, advertising revenues, anticipates significant breakage consistent with or exceeding industry norms