Weighing in on the digital/offline balance at Weight Watchers
- Summary:
- Weight Watchers efforts to strike the right balance between digital and traditional meetings is an ongoing challenge, but one with some successes.
One of the benefits of an ongoing site such as diginomica is that we are afforded the opportunity to look at a range of digital transformation use cases and to continue to track and assess the progress - or otherwise - of those over time.
One of the most popular use cases that we’ve looked at has been that of Weight Watchers, an excellent example of a business model that dates back decades, was once disruptive in its own right, but is now in danger of being disrupted.
Back in November, when we last took a look at where the transformation journey currently weighed in, CEO Jim Chambers had stepped down. He’d been a vocal and evangelical advocate of digital change, essential for any successful transformation exercise, but I wondered if he’d not quite got the balance right. I wrote:
The firm is now at an interesting stage in that journey. Chambers made some good calls on the need for online presence and increasing the firm’s digital footprint, but perhaps took the corporate eye off of some of the more traditional aspects of the business model.
The search for a full-time successor to Chambers is still underway, but the message coming from the triumverate of executives who make up the Office of the Interim CEO at the firm is that striking the right balance between digital futures and the offline traditional meetings model is a top priority.
The latest revenue breakdown figures from the company make for interesting reading. New subscribers to the meeting model are up 10% year-on-year to 1.1 million, while online subscribers are up 9% to 1.5 million. So almost neck-and-neck in terms of how newcomers choose to interact with Weight Watchers, although Director Chris Sobecki makes it clear that the exception is still that online numbers are going to grow faster than their offline counterparts during the coming year.
So with that in mind, it’s essential that the digital proposition is honed. Or as Sobecki puts it, turned from liability into asset:
We have begun to transform our technology and product platform from what was once a competitive liability to what is now a competitive strength, aimed at engaging, empowering, and motivating our members.
His colleague Thilo Semmelbauer says that enhancing the digital experience is crucial:
We know how important digital is as an entry point for consumers. In preparation for winter season, we redesigned our visitor site to improve how program information and pricing are presented, which is resulting in higher conversion. Our mobile app is becoming a life line for members. We're seeing increases on already high levels of engagement and the app is now consistently scoring 4 to 4.5 stars across geographies.
Over the past two years, the team has made tremendous strides in enhancing the member experience, which includes upgrading the design, usability, features, as well as improving the stability of our digital products…Whether a Weight Watchers member attends Meetings or is Online-only, our digital tools have become a daily source for tracking, inspiration, information and support. With all the progress that's been made we know we can make the digital experience even better and will continue to invest and focus on our digital products throughout the year.
Talking to the customer
An ongoing challenge is in understanding what it is that the consumer actually wants from his or her interaction with Weight Watchers and this is also a focus for the firm, adds Semmelbauer :
This year we will be conducting extensive consumer research down the age curve to better understand what motivates them, what they're looking for, what tools, what type of engagement, and support they want. And these insights will inform how we innovate both our digital products and our face-to-face experience. We believe there is great potential to widen the funnel of who we attract and accelerate member growth further.
One of the learnings the firm has made is around how important first impressions are. Getting it right from the get-go is going to shape a consumers ongoing engagement with the firm, says Semmelbauer:
One of the most important parts of the member experience that we're focusing on is the first week, which is a critical time for new members. We know that if we can improve the on-boarding process in the first week, both online and in meetings, our members will be more likely to achieve success. And if our members are more successful, they're likely to stay engaged with the program for a longer period of time and become brand advocates. Length of stay is eight to nine months on average, and even a modest uptick has great incremental potential for the business.
In recent years, the face of Weight Watchers, particularly on social media, has been Oprah Winfrey and this is still seen as a win for the company. To that end, there have been new digital initiatives introduced to enhance this, such as the firm’s Live Fully outreach campaign. Sobecki explains:
Starting with North America, our Live Fully campaign featuring Oprah Winfrey has been a great success. The campaign has brought to life how Oprah and other members are losing weight while eating the foods they love and enjoying a fantastic and full life on our Beyond the Scale program.
The start of this year saw another Oprah-centric offering launched:
For our busiest season in January, we launched Connecting with Oprah, a members-only video platform designed to spark inspiration and connection for each step in our members' journeys. Each weekly video centers around a theme and provides insight from Oprah on topics and concepts that have helped her live her best life with Weight Watchers.
The power of social media and video has an enabling impact on consumers, concludes Sobecki:
Members have found clarity and connection through topics like intention, positive thinking, and envisioning success. The addition of this feature has been enthusiastically received by our members, who then keep the conversation going on our member-only social media platform.
My take
I remain impressed by Weight Watchers efforts to ensure that neither online or offline tips the scales in the wrong direction. Getting that balance right must be one of the specs in the new CEO’s job description.