Nutrisystem 2014 Annual Report Download - page 12

Our food items have accounted for 99% of our revenue for each of the years ended December 31, 2014, 2013 and
2012. No other product or service has accounted for more than 1% of our revenue in any of the last three years.
In the years ended December 31, 2014, 2013 and 2012, approximately 99%, 99% and 98%, respectively, of our
revenue were generated in the United States.
The Customer Experience
Our sales, marketing, ecommerce and service operations seek to understand our customers’ needs throughout
their weight loss and management journey to help us develop effective, compelling and innovative products and
services. Through a combination of consumer research and data management, we personalize the introduction,
on-boarding, weight loss, transition and maintenance phases of our customers’ experience.
•Introduction/Acquisition
We attract new customers via direct response television, online marketing (search engine marketing,
search engine optimization, affiliate marketing, display advertising, partnerships, retargeting and
email), direct mail, print advertisements and a variety of other direct marketing efforts. We have a fully
integrated acquisition enterprise. Response is tracked to the specific vehicle, and analytic models are
used to attribute other orders back to the response source, in order to closely manage the effectiveness
of our specific direct marketing efforts.
The majority of our new customers buy via our website. We consistently seek to refine our sales
conversion funnel through thoughtful testing to improve the learning and buying experience for
prospects and to increase conversion rates.
We also have an in-house call center. Staffing levels fluctuate seasonally and are aligned to marketing
spend and consequent call volume. Sales agents, paid primarily on commission, take in-bound
responses from our advertisements, and personalize the weight loss plan for each customer. They also
make out-bound calls to our leads.
•On-Boarding
To help customers get off to a strong, successful and simple start, we provide both printed materials in
initial shipments of food (including a My Way Made Easy magazine, Expert Guides, a Quick-Start
guide, a Grocery Guide, a Dining Out booklet and a Daily Food Tracker) and a robust set of
personalized online tools and trackers. Customers are encouraged to join our large online community of
customers past and present and we are active in social media to engage in conversations with our
customers.
•On-Program
We use customer preferences to offer a variety of additional products and services that help customers
while on the path to their weight loss goals. These offers are made via our website, emails and
newsletters, and our call center.
We also offer complementary counseling services for our customers with trained weight loss
counselors, registered dietitians and certified diabetes educators. We seek to hire counselors with
backgrounds in psychology, sociology, nutrition, dietetics or other health-related fields and with
suitable, compassionate personalities to help and support our customers throughout their weight loss
journey. Counselors are trained in our programs, motivational techniques and problem solving.
Counselors take in-bound requests for help and also reach out to customers via email and phone.
•Transition and Maintenance
As customers reach their weight loss goals, we offer transition and maintenance programs that provide
products and guidance that combine the right amount of structure and flexibility. These programs are
offered online, via email marketing, and via our call center’s retention agents.
•Return/Reactivation
Because we realize that weight management is a lifelong process, and that customers may need our
programs again from time to time, we reach out to past customers to attempt to put them back on
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