Revenues for the Fort Washington-based company have declined from $776 million in 2007 to $401 million in 2011 and were flat for the first three quarters of 2012. Its fat bottom line slimmed down even more, with net income of $104.2 million in 2007 shrinking to $12.3 million in 2011.
Zier spent 20 years at Reader's Digest, running many different divisions, including International with $750 million in revenue and about 1,000 employees. Reader's Digest was often in turnaround mode during those years, and Zier said she was in the thick of it, trying to manage costs while using data gathered from customers to hone the company's direct-marketing efforts.
In an interview in the test kitchen at NutriSystem headquarters, Zier acknowledged the difficult job ahead but noted that "turnarounds can be fun."
When I suggested that not all executives within organizations might share that feeling, Zier added an important corollary. "If you know which way you are going, it is. When you don't, it's hard," she said.
With a bachelor's degree in engineering and an MBA, Zier loves nothing more than to solve problems. Improving profit margins is important to her, and she has pledged to scrutinize the income statements of every department to find savings.
But to Zier, the key to Nutrisystem's revival involves a return to the basics of any direct-marketing business: knowing who the customers are, tailoring marketing to reach and keep them, and analyzing the effectiveness of those marketing efforts.
As an example, she pointed to the 8 million names in Nutrisystem's customer database, which she said has been "underleveraged."
Diet and fitness firms often benefit from New Year's resolutions, because so many involve losing weight. I asked Zier whether she had a resolution for 2013, and she said, "To turn around Nutrisystem."
Contact Mike Armstrong
at 215-854-2980 or firstname.lastname@example.org, or @PhillyInc on Twitter. Read his blog, "PhillyInc," at www.phillyinc.biz.