LifeVantage Vitality Stack Packets drive double-digit growth in order rates

By Mary Ellen Shoup

- Last updated on GMT

Consumer adoption of LifeVantage's single-serve Vitality Stack Packets has been strong since launching five months ago. ©GettyImages/AntonioGuillem
Consumer adoption of LifeVantage's single-serve Vitality Stack Packets has been strong since launching five months ago. ©GettyImages/AntonioGuillem

Related tags Direct selling Multi-level marketing Biohacking Earnings Call

LifeVantage, an international multi-level marketing firm, is seeing strong consumer acceptance of its single-serve Vital Stack Packets that provide a personalized dietary supplement experience.

LifeVantage Vitality Stack Packets were launched in January​ of this year and feature the same four supplements found in the company’s multi-serve products (Protandim Nrf2 Synergizer, Protandim NRF1 Synergizer, Physiq Probio, Omega+), in a single-serving packet design.

Since introducing the new line, order rates have grown by 23% and the Vitality Stack Packets product range now accounts for 16% of the company’s global revenue of $50.6 million for Q3 2018 with sales primarily in the US, exceeding its initial targets of 15% by fiscal year-end of 2018.

“We're seeing higher average basket sizes, and we have already exceeded our targets for our stacking product initiative,”​ CEO Darren Jensen said to investors during its Q3 2018 earnings call this week.

“We continue to plan for additional stack releases in the future, which are becoming the primary protocols to support the biohacking culture we are creating across the company.”​ The term 'biohack,' which PBS Silicon Valley correspondent Spencer Michels described​​​  as "citizen or do-it-yourslef biology," ​​ has been trending upwards​ in Google searches for the past seven years.

International expansion, with focus on 'greater China'

Jensen added the company will also continue to expand its reach into other international markets outside the US.

“As we get additional products that are part of that package or that sachet approved in international markets, we'll continue our global rollout with it,” ​he said.

LifeVantage’s “greater China strategy”,​ for example, includes expanding its current operations in Hong Kong and developing its presence in Taiwan.

To further drive customer acquisition, the company introduced an“auto-assign customer program”, ​which allows new customers to order directly through without being required to go through an individual distributor on their initial order.

Distributor network growth

LifeVantage has also seen an uptick in distributor retention and enrollment driven by its mobile app launch that streamlines the selling experience, as well as its Red Carpet program, the company’s recruitment platform designed to attract new distributor leadership members to LifeVantage.

“We continue to see a strong response to our Red Carpet program, with related sales tripling during the third quarter when compared to the second quarter,”​ Jensen said.

“This custom-developed platform is pioneering new ways for us to attract or to interact with our distributors and customers and gives us and our distributor leadership unprecedented insight into the activities of our distributor base.”

As a result, distributor retention rates measured by first-year activity during the quarter increased to 51%, up from 38% a year ago.

The rollout of the digital LifeVantage mobile app has delivered tools to simplify business activities and communication by walking new distributors through starting their business, improving prospecting, as well as closing new clients and distributors, according to Jensen.

“There is more to come on the LifeVantage digital platform. The next phase to be rolled out will integrate artificial intelligence in an effort to further increase distributor productivity and sales success,”​ Jensen added.

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