September/October 2007

Welcome to the latest issue of Nutraceutical News from IFS.  In this issue you'll find our Industry Update about how the weight loss industry is cleaning up its image.  As for our other columns, we explain how happy employees are crucial to a successful business in the Fulfillment Notes section.  In our Marketing column, we discuss the misunderstandings of marketing, and in the Customer Service Corner we talk about the importance of a well developed customer service plan.

For more information about the content found 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:

• Industry Update: The Weight Loss Industry - Cutting out the "Bad Fats"
• Fulfillment Notes: Happy Employees are Crucial to a Successful Business
• Marketing: Marketing Misunderstood
• Customer Service Corner: A Good Start to Good Customer Service
• About IFS: For More Information, Contact Us

Formerly an industry of empty promises and less than mediocre research, weight loss supplements have begun to transition from the "magic pill" to an aid for a healthy lifestyle.  Still one of the biggest segments in the supplement market - about $2 billion - recent regulations from the Federal Trade Commission (FTC) have shaped up the industry's fraudulent reputation.  By targeting those supplements claiming positive results without any scientific evidence to back them up, the slate is being wiped clean to make room for the real deal.

According to a recent article in Nutraceuticals World by Marian Zboraj, although this industry has started to trim down the unhealthy players, the U.S. population hasn't exactly done the same.  The Centers for Disease Control and Prevention (CDC), reports that about 66% of U.S. adults are considered overweight or obese.

At least it appears that consumers are finally getting over the idea of a "quick fix" and adopting a better understanding for how to live a healthy, active lifestyle with a little help from a credible supplement.  Ms. Zboraj says this is likely the result of several factors-restaurants offering reduced-fat meals on their menus; snack companies producing 100-calorie portioned controlled packs; popular children's foods reducing sugar content; and even chains like Starbucks switching from serving whole milk to low-fat milk in its U.S. and Canadian stores.

Weight loss supplement manufacturers are starting to listen to their customers (and the FTC) by ditching the "fat blast" idea and gravitating towards specific solutions such as increasing the metabolism or the use of appetite suppressants.  The marketing of weight loss supplements has also taken a positive turn by educating consumers on how to get the best results while using their products, such as working out three days a week and eating balanced, sensible meals.

With several ineffective and unhealthy supplements still on the shelves today, however, consumers still need to pay attention to what they pop in their mouth. Luckily, the "magic pill" ideology has begun to fall behind the new desire for not just a smaller waistline, but a leaner, more energetic and all around healthy body.

In a fulfillment company, one of the most important ways to ensure success is to make sure your employees are happy.  Of course, your customers should always be top of mind but your employees are the ones running the ship.

Many business owners believe that as long as the customers are satisfied, the company will succeed. What they seem to forget is who specifically is responsible for making them happy.  In fact, according to a 2005 Salary.com survey, thirty-five percent of employees leave their companies because of a lack of recognition.

To keep your valued employees from leaving, here are a few tips that will really show them you care:

• Know their names - Although it may be difficult in a large company to know everyone's name, the respect it shows you have for your employees is extremely gratifying.
• Give quarterly evaluations - When employers overlook employee evaluations, it makes their staff feel unimportant.  Take the time to sit down with each employee and discuss their contribution to the company and areas in which they need to improve.
• Accept requests for scheduling - It may be difficult at times to plan for coverage when employees are making their own schedules but try to accommodate them whenever possible.  That is a huge perk for employees and the flexibility will make it hard for them to leave.
• Promote those who deserve it - When outsiders get the jobs current employees deserve, their discouragement will surely be the kick start to a job search.
• Give bonuses when appropriate - Giving your staff something extra for bringing in a new client or completing an exceptionally important project will encourage them to keep up the good work and remain loyal to the company.
• Be available - Not fitting time for your employees into your schedule is discouraging and can also make employees feel unimportant.  Be sure to make time for them so they don't feel ignored.

When it comes to a fulfillment company, every individual is a major player in making sure the customers are taken care of and the products get shipped on time.  It's easy to get caught up in satisfying your customers but don't forget about the root of your business.  When your employees feel appreciated, they will be eager to return the favor.

A common problem in today's business world is first time owners setting themselves up for failure right off the bat.  Why? Many don't think they need to market their products or services in order to be successful.  They assume people will flock to them just because they've introduced something they believe people will want.  What they don't seem to understand is if people don't know you exist, they are not going to buy from you.

For those that do understand the value of marketing, another reason new businesses fail is because of the constant misunderstanding of how to market effectively.  Although they may have a marketing strategy, many new business owners will simply implement a campaign that is a copycat of the guy next door.  They figure, if it worked for them, it'll work for me, right?  Wrong!

What's important to understand is, although virtually any kind of marketing is better than no marketing at all, you can't base your strategy on what everyone else is doing.  Even if it's proven to be successful for others, that doesn't mean it's the right fit for your business.  Which brings us to an even bigger question: How do you know what will work for you?  The answer - test, test, test again, and still test some more.

Learn from experienced, successful direct marketers like Lands' End, Eddy Bauer and The Sharper Image. Test your "control package" against other options. For example:

• test one headline against another;
• test one offer against another;
• test one ad against another; and
• test one sales approach against another.

These tests will help you understand what approach will work for your business and what won't.  But remember, the only way to know what is effective for your business is by testing it, and making ongoing improvements until it works consistently for YOU.

If you are a small business owner just starting out, a well developed customer service plan should be top of mind.  As we all know, customer satisfaction is the key to growing a successful business.  Even if you're a one man (or woman) shop, you still need to ask yourself, "How are we treating our customers?  Are we taking the time to listen to their needs?  If there is a customer service issue, are we promptly offering a satisfactory response/solution?"

To create a customer service plan, start by asking yourself a few questions on the following topics:

• Quality:  Can you identify the exact features of your product or service that will define quality for your customers?
• Communications:  How will your prospects be able to tell you they want more information before they purchase. Can you insure they'll get it quickly?
• Supplier:  When you've set your standards of quality, can you be sure your suppliers of products, materials and services will uphold those standards?
• Personnel:  Do you have the right people to help you?  Are they team players who also have a "customer first" mindset?

After you've answered these questions, the best way to move forward is to put your customer service plan in writing. You may feel it's unnecessary but when new hires come along, you'll need it to inform them of your standards, what you expect from them and how you will work together to satisfy your customers.

It is crucial for you, your employees, your suppliers and everyone involved in your business to personally be true to your customer service plan each and every day.

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.