Steve Fife, CEO of nutrigenomics company LifeVantage, discussed the recent decision by Rodan + Fields to abandon its multi-level direct selling model, noting it was largely driven by the rise of the "gig economy" and changing consumer preferences for more personalized approaches.
Operating in the direct selling channel, Fife said LifeVantage’s compensation plan that was developed 15 years ago suited the company well for that time period, but in order to survive, sometimes businesses have to evolve with the times.
“What always comes to mind is Blockbuster and Netflix, and if you look at those two companies and where they are today, their ability to pivot and see what was ahead of them kind of formed their destiny or their future with Blockbuster now being out of business and Netflix moving away from mail order DVDs," he said. "They saw it coming and they recognized it and they pivoted. And fortunately, we've done the same.”
Last year, LifeVantage made a strategic move to streamline customer and consultant experiences. Fife shared that the company has invested in digital tools to provide a seamless customer and consultant experience, streamlining processes through LV360, a holistic approach to improving business processes and supporting consultants. The goal is to remain true to its roots while offering flexible opportunities that can compete economically with other options in the market. This update has enhanced customer engagement, improved consultant support and driven sustainable growth, Fife said.
While Rodan + Fields and LifeVantage both demonstrate two very different approaches to addressing the modernization of direct selling, Fife noted that companies can learn from both.
“I think it's just critical to know your customers, know your constituents," he said. "For us, it was seeing this macro trend and then understanding how we could leverage and support our existing consultant base while taking advantage. And I think that that's what every company needs to do, regardless of what you're in.”
Fife also highlighted LifeVantage's flagship product, Protandim Nrf2 Synergizer, which has remained a key revenue driver for over 15 years. The supplement is clinically proven to reduce oxidative stress by 40% in 30 days. In addition to keeping up with the modern consumer, Fife credits the company's success to the focus on science-backed ingredients.
“Ingredients matter, science matters, and people are much more educated today,” he said. “I think other supplement companies need to be very cognizant of that and make sure products are meeting the standards that consumers have grown to expect."
To hear more on the implications for the direct selling industry, what dietary supplement companies learn from this and a new offering LifeVantage will debut this fall, listen to the NutraCast.
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