March / April 2005

Welcome to the latest edition of Nutraceutical News from IFS. In this issue you'll see our Case Study revisits long-time client CardioTabs, since they've experienced 50% growth over the past year. You'll also find tips on how to save money on shipping (hint: ship from the Midwest!), how to make the most of "back end" marketing opportunities, and considerations that can help you improve your customer service.

For additional information about what we write here or about any of our products and services, you can always visit our website, www.ifssolutions.com. To share your feedback about this newsletter, please click here. To unsubscribe, please use the link at the end of this issue.

In this issue:

• Case Study: CardioTabs - Experiencing 50% growth in the past year
• Fulfillment Notes: Looking to save money on your shipping? Look to the Midwest!
• Maximize Your Marketing Effectiveness: "Back end" marketing opportunities you can't afford to miss!
• Customer Service Corner: Staffing for Peak Call Center Periods
• About IFS: For More Information, Contact Us

Although CardioTabs was the featured case study in our inaugural issue of Nutriceutical News, now - more than a year later and with the steady growth the company has experienced - it's time to revisit the story of this fine client.

Cardiovascular Consultants, a group of cardiovascular doctors at St. Luke's Hospital in Kansas City, Missouri, formed CardioTabs in early 1999. The new company soon engaged Formation Strategies, Inc. www.formationstrategies.com to help them introduce, market and manage distribution of their CardioTabs products. The first product, a multi-vitamin now called CardioDaily, was formulated based on the latest cardiovascular research concerning heart disease. Each capsule of CardioDaily contains high-quality nutrients in the exact quantities cardiologists recommend.

Since launching CardioTabs five years ago, the company has grown steadily and has since introduced several new products under the CardioTabs brand that have attracted interest from thousands of consumers. They are:

• Omega 3 - A concentrated fish oil supplement containing essential fatty acids in a ratio designed to mirror that found in naturally oily fish.
• CardioTea - Tea, especially green and black tea, has been proven to be a potent source of antioxidants, which also supports the body's immune function and cardiovascular health. CardioTea with Policosanol is the equivalent of 35 cups of green or black tea in a single daily dose, but with one half the caffeine found in a cup of tea. .
• CardioSterol - CardioSterol is a unique, all natural nutritional supplement that contains phytosterols and fish oil. Phytosterol esters are FDA-approved and recommended by the National Cholesterol Education Program of the National Institute of Health to improve blood cholesterol.

Ever since CardioTabs was first launched, Formation Strategies has chosen to focus on the sales and marketing of their products rather than managing the challenges associated with warehousing and fulfillment. That's why IFS was contacted in the first place - for its expertise on those "back end" issues.

"We knew our expertise was on the sales and marketing side of the business," said Formation Strategies President Ron Bremer. "We had learned about IFS and believed they had the fulfillment knowledge and capabilities that would support our efforts for CardioTabs. They've done a terrific job. As our company has grown, IFS has continued to add the level of support necessary to provide superior customer service."

With the expansion of the CardioTabs brand, IFS's experienced Call Center staff has undergone continual training on all the new products so they can answer customer questions as well as upsell items. As a result, CardioTabs' sales have climbed consistently, increasing the volume of shipments in 2005 by more than 50 percent over the same time as last year. So, CardioTabs expansion is a win - win - win situation:

• the company wins with increased sales;
• the consumer wins with valuable new products that positively impact their health; and
• IFS wins, having CardioTabs be such a terrific client for over five years!

"CardioTabs is a very valued client for our company and they were our first introduction to the nutraceutical industry," said Keith Milburn, President of IFS. "After providing services to CardioTabs for some time, we recognized a natural fit with their ethical products and our "high touch" customer service. With CardioTabs as a model, we have continued to expand our nutraceutical capabilities, and now serve a number of respected companies with similar ethical standards and quality products."

Are you frustrated that it's taking too long for your nutraceutical shipments to reach your customers in various parts of the country? If so, you might want to consider shipping from a more central location.

It typically may take five or more days to ship ground packages via UPS between the east and west coasts, and even longer using the Postal System. If that delay causes your customers too long a wait, there are ways you can cut that time down by a day or more. PLUS, you can save some money, too!

Consider shipping your products from the Midwest. Take a look at the chart below.

As your company may be shipping hundreds or thousands of packages each year, it makes sense to ship from the most cost effective location, which is from the center of the United States. Just as a ripple in a lake takes equal time to reach all shores, it takes equal time to ship to all points in the U.S. when you ship from the geographical center. Save time and costs by locating your fulfillment in the Midwest, especially when you can also receive outstanding service.

Most people think all marketing efforts take place before the sale. But it's important to remember that great marketing can happen after the sale, too. And it can mean additional revenue when it's done correctly.

Take for instance package inserts. Just because you generated an order for your nutraceutical product doesn't mean that customer will never have to be "marketed to" again. Consider enclosing special offers with your orders - offers that will generate quicker repeat business and/or larger orders. For example, a package insert sent along with an order carrying a single bottle of nutritional supplements could offer either free shipping or a complementary subscription to an online health-related newsletter with the customer's next order.

Don't overlook what can be printed on the invoice that is included in each customer's package. For instance, with our IFS invoices, clients can add up to a four-line message that appears on their packing list/invoice. That message can be a product promotion, a "cross-sell" opportunity, a special price for an item you're discontinuing or helpful product information.

Package inserts and invoices are two ways to help your "back-end marketing" achieve results.

Do you have a customer who is planning a big direct mail campaign or public relations blitz? It's important to plan for staffing your phones.

That's where constant communication between clients and their Call Centers is critical. At IFS, we make a point of communicating weekly - if not daily - with all of our clients. That way, we're always prepared for any upcoming spike in Call Center traffic. Whether it's an infomercial, a PR blitz or a direct mail campaign sent to thousands of new prospects, we're always prepared to help our clients get the most out of their phone response.

Although we typically staff Monday through Friday, special accommodations are made when necessary to ensure customer calls are handled evenings and weekends. In fact, we work closely with two other local call centers to ensure our clients' staffing needs are met.

If you want to make the most of your advertising and marketing efforts, make certain your phones are staffed to take care of your customers. If new customers aren't well taken care of during their first interaction with your company, who knows if they'll give you a second chance.

IFS is a world class, full service fulfillment operation with a track record of success. A woman-owned business, we proudly serve some of the country's most respected corporations. With a special expertise in the fulfillment of nutraceuticals, we can help you run your nutraceuticals business more efficiently and more cost effectively.