Nutrisystem Provides Strong Customer Experience, Customer Engagement

For a company to record 10 straight quarters of year-over-year revenue growth, including its second consecutive year of double-digit revenue growth, means its management of customer experience and customer engagement must be clicking.

That’s the case for Nutrisystem.

During the company’s Feb. 25 fourth-quarter conference call, CEO Dawn Zier offered her perspective on the positives surrounding Nutrisystem.

“Our multi-lever strategy makes our business model one of the most predictable and foundationally sound within our industry,” Zier said, according to Seeking Alpha. “We’ve consistently delivered value to both our customers and shareholders. Throughout 2015, we continued to strengthen our business by investing in new product innovation, improving the customer experience, and marketing breakthroughs. Both our direct-to-consumer and retail channels had double-digit growth with 85% of the growth coming from our direct channel.”

Zier noted that Nutrisystem attracted new and more profitable customers in 2015.

“New customer revenues were up more than 15%,” she said. “Additionally, reactivation revenues were up 7% due to growing customer pool and higher reactivation rate. Both new and returning customers fuel 2016 growth. Our Uniquely Yours plan, which gives customers the ultimate flexibility in food choice, continues to exceed expectation. With more than half of our customers now choosing this premium frozen option, this is another major driver in 2016. To support the increased demand in our fresh-frozen product, we’ve just opened the new frozen warehouse in Troy, Illinois. We excelled that executing efficient and successful marketing campaign. Our team is highly effective, engaged driven marketing and analytics, created expectation and implementing pricing and office strategy to resonate with both existing and new customers. We looked into and understand what the customer wants and there is more we will do on this front in 2016.”

Zier said that the word ‘diet’ continues to be one of the most searched for items on the Internet.

“And at Nutrisystem, we believe that lifelong change happens one step at a time and that first step making the decision to lose weight is a very positive start,” she said. “Obesity tops the list of health issue that our country faces and the easiest and fastest way for large majority of Americans to achieve a healthy outcome to reduce their chance of getting Type II diabetes, to reduce their chance of a heart attack, to improve their energy to sleep better and the list goes on is by losing 10 to 20 pounds. And we are proud to be a proven, committed, and innovative leader in the growing weight loss space.”

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