Friday, May 27, 2005

"Thank You For Calling Beachbody"



These are photos from our first "Executive telemarketing summit" for management to experience and improve the way our inbound telemarketing calls work. Beachbody President Jon Congdon (in the foreground of the first photo), SVP of customer service Jorge Molina, super-sales-guy Greg Walker, Director of Telemarketing Joe Camarillo and I took P90X phone calls all morning to experience what our inbound telemarketing agents do when they get calls from our infomercial viewers.

To say the least, it was enlightening, and marked the start of a new era in how we approach this critical piece of our business. THIS is where "the rubber meets the road", as new customers respond to what they saw on TV. It was one of the most exciting mornings I've had at this company since we started -- because for the first time, I got to speak with customers (anonymously) and get a better understanding of opportunities and challenges created by the offers we broadcast.

I kind of feel stupid for not doing this fifteen years ago, or at least six years ago when we started Product Partners. It's like I was a restaurant owner never waiting a table, or a shop owner never walking the floor of his store to hear what customers are saying. Actually, we have intended that every new employee was going to go through customer service training and even take calls for a week a year. But so far that plan has not materialized as rapid growth required us to get people in, trained, and on to the specific task they were being hired for. But now I can see the advantage to this process. And we will certainly revisit that training concept.

For me, something about getting my mind into "sales mode" - which means getting real people excited about what's possible when you really "Bring It" with a fitness program like P90X - got me back into the spirit of what it takes to radically change the trend of obesity. People don't need a little nudge or a new food pyramid, they need true belief in the solutions they are considering and the momentum created by enthusiasm to make the commitment it takes. People don't want to waste their time - and if the program really works, they need to hear that confidence when they call to order.

As I answered calls, I heard people hemming and hawing, questioning the price, questioning the company they're dealing with. And that's when I would really get excited, because I know that if people go for it, if they follow the P90X program as it is outlined, (or one like it... oh, there is nothing else like it) they WILL get into the best shape of their life! The price is just not the point when compared to the cost of being out of shape. And when people consider the short and long term benefits of being lean, strong, and seeing how well their clothes fit, or when they consider what people are spending for big multi-station machines, gym memberships, or even surgery, our systems are the absolute best value offered anywhere to achieve real, healthy body transformation. It's not just about the information or the equipment you need to get results, it's about whether the system you're using supports you through the challenging times when you'll want to give up. That's where we win every time, because we stay there with people to support them at every step. That's where we're unique, and that's what I got to tell people on the phone today.

This was an exciting morning as other Beachbody management and staff visited our mini-test lab to witness the process. And as usual, everyone who stopped by also pitched-in with suggestions for making things better and to cheer on one of us when they could hear us struggling to answer questions on the fly.

And with this effort, Beachbody has once again demonstrated its commitment to improve everything it does at every turn, and to treat its customers with respect throughout the process. So the next time you order from Beachbody, listen close, you may just be talking to headquarters!

Wednesday, May 25, 2005

The Next Big Thing?

I get asked often by associates and customers “What’s the next frontier for Beachbody? What’s the next big thing the CEO is working on?”

It’s interesting to prospect for opportunity – it comes with the “CEO” title, especially as a creative guy who relishes the start-up process. It’s my job to keep an eye on the horizon for the next opportunity. But in an industry that is enamored of “what’s hot” and “what’s new”, one of the distinguishing things which has made our company successful is our persistence and focus, facilitating growth at the same time we are living within our means.

The more I have kept my eye on maximizing investments we’ve made and doubled-down by investing in fixing the problems which are causing customer grief, the stronger we have grown.

Right now I find myself in that very same situation: Maximize the business at hand more than prospect for “the next big thing”.

We have a great catalog of products which have a compelling marketing message and which are effective solutions for the customer. But what used to be a simple business of one or two offer set-ups has matured into a complex matrix of options. From “Try it free” to “Buy the entire thing today for this special price”, the complexity of offer structure is daunting when you multiply it over all the variations, and the ripple effect of issues all the way through marketing, operations, finance, and customer service gets very complicated. Last year we felt like we were at the top of our game. In an effort to better serve the marketplace, we added this layer of complexity, and the challenge is being felt in every corner of the business – and that means it's also being felt by the customer.

Lately I’ve seen emails from some frustrated customers, some who didn’t really understand an offer, others who didn’t appreciate the way they were treated by a customer service rep. It makes me wince every time I get a customer email that says something like “you obviously don’t care about the customer at your company”, because I wake up caring about the customer, and I spend the day caring about the customer, as does the entire management team of this company. But when you’re growing customer service by 10% a week, the process of training and retaining quality people is a race against time and volume. We’re doing our best. We answer every email. We’re adding technology. We're clarifying offer structure. We’re hiring more people, and investing more in training. And as we inch toward 24/7 customer service hours, it’s a daily struggle to maintain quality. So far, the team is doing a great job, and the entire company is working to improve everything.

My job as CEO is to make sure management is focused on maximizing the commitments we've already made, including attending closely to the customer experience, not just looking for the next new thing. We have to maximize the customer relationship, live up to our promises, and above all else, support the customer in achieving the REAL point of our relationship: the achievement of fitness and weight loss.

Right now I am working on making sure as many people as possible are hearing about the products and programs we have created. At the same time, I am making sure that the people who are responding to our offers are getting the attention -- the same kind of service they would get if this company were just me sitting at a card table with one product and enough cash to break a hundred dollar bill. Bigger will not mean a dillution in overall customer satisfaction -- not here anyway.

That’s not the glamorous priority of the title, CEO, but it’s the part of the job that helps the whole enterprise feel good about the work. That doesn’t mean we don’t have a few new things on the drawing board. Clearly, TurboJam™ has the potential to be a blockbuster. And when that product gets added to the catalog this summer, it will get the benefit of a fortified infrastructure and solid business approach that treats the customer with respect, maximizes investment in development, and stays focused on what’s really “the next big thing”… our growing list of real customer success stories.

Thursday, May 19, 2005

Supplement Swallowing Tip!

A smart friend gave me a tip the other day about taking supplements so the body gets the most out of them: Let the pills sit in your mouth for a moment before swallowing. Supposedly letting your saliva contact the supplement before you swallow them does two things: (a) the saliva gets the breakdown of the supplement started efficiently and (b) the enzymes in the saliva transmit so the body knows what sort of nutrients it's about to assimilate. (This is unconfirmed by any scientist or study that I know of - so take it as educated conjecture).

So if you're doing the right thing for your body and taking a high quality vitamin supplement, consider giving your mouth a second to send the rest of your body the "heads up!"

Wednesday, May 18, 2005

The Ernst & Young Entrepreneur of the Year

Every year Ernst & Young stages its Entrepreneur of the Year awards, recognizing business-building and innovation accomplishments in a series of regional events, leading to their national awards in November. A few weeks ago we were nominated by a friend who took it upon himself to submit our names. Then the Beachbody marketing team got involved to put the information together, and since then Jon Congdon, President of Product Partners, and I were formally “in the process” of meeting judges, describing our strategies, and meeting some of the brightest business minds in Southern California.

We learned yesterday that as a team, Jon and I are in the final running with fourteen other contenders to win Entrepreneur of the Year in the “Greater Los Angeles Region.”

What’s most exciting about this kind of recognition is that you get to meet bright visionaries and “change agents,” and learn new strategies for innovation. These are people who take chances, pursue dreams, and make things happen. The whole thing is an inspiration. And we are honored to be in contention of the award.

I’ve already got my tux picked out for the June 28th awards ceremony where they will announce the regional winners. What do you think, too much?


Tuesday, May 17, 2005

TurboJam is in Production


 Posted by Hello
Just moments before they started to shoot one of the first TurboJam workouts, "TurboJam Cardio Party", I snapped this shot with my cell phone. And then the party started - the music is off the hook - the energy is unprecedented - and you cannot help but want to get up and join in.

Honestly - Chalene and the cast are awesome, and everyone involved has done a great job pulling everything we've learned together to make these the most fun you can have sweating off inches. I am very impressed. (Which says a lot, because I've had as little to do with this development as anything we've produced.)

Andrea, the director on this shoot, is the "go-to" director on fitness videos. If they're noteworthy, she does them. And I am always impressed how, even though she's shot workouts for all "the biggies", she still defers to us and the specific details that make a video a "Beachbody" workout. She's a pro, and we're lucky to work with her.

Sunday, May 15, 2005

Snack Magic

Snack magic

My five year old daughter and I had a big day planned yesterday, including some beach/sandcastle-building time, the Santa Monica fair, and a movie... Within all that, I knew it had the potential of being a day long fight to avoid junk food vendors. So I decided to make a preemptive strike. As she climbed into the car I challenged her to guess the "celebrity snack of the day". I gave her some hints... "they grow in the ground"... "they are really good for your eyes and might even give you xray vision"... "they're the choice of celebrity rabbits like Bugs Bunny, Roger Rabbit, and even the Easter Bunny himself"...

"CARROTS!" She guessed

No, not just carrots... Mini carrots!

Long story short, she ate this bag of carrots all day, from point-a to point-b... Emptied it. No prodding, no begging. The concept of them being special, and available all day trumped the urge to "think of a snack" if she got hungry.

Likewise, we continued the game of imagining who would eat carrots. Horses, Mickey Mouse, Britney Spears... I was selling. But when the day ended and I realized Ava had not ramped up into a single sugar high for the day, it seemed like the plan worked.


So Sunday, I am thinking of dedicating the day to the "amazing case of the disappearing Cherry Tomatoes".

Friday, May 13, 2005

The Kids of El Faro

Below are some photos taken at the orphanage at El Faro, which we have supported financially from time to time for the last thee years.

I intend on visiting in the next month or so. Tonight was the big annual fundraiser, and these photos helped display the amazing work of Leigh and Adam Smith, friends who have taken it upon themselves to focus enegy on this endeavor... Amazing, inspiring people..

Amazing inspiring work. If you care to or participate, check it out at www.friendsofelfaro.com









"Pump It"



The large workout room at Beachbody is reserved all day today as we prepare for a new product shoot next week. Beachbody’s VP of Development, Lara Ross, and Director of Production, Heather Church look on as Chalene Johnson demonstrates her signature “Pump It” abs move. It's one of her Elite 11 which will be featured in the TurboJam routines we’re shooting next week.

Based on a meeting yesterday I think the entire TurboJam product will be ready to ship in July. All I know is, the entire production staff is into this product - from the heavy investment we've made into the music, to the high-energy vibe Chalene puts into her workouts. I love to see how the Beachbody team improves with every new shoot. They've realized that we're not only in the fitness and weight loss business, we're in the entertainment business - People need to enjoy the workouts they're doing. And based on the reactions we're getting from rehearsals, you are going to love this product.

Thursday, May 12, 2005

"Houston, we have a problem"


Maybe it's me... but when there's an obesity crisis in the US, especially in Texas, and your Amarillo, TX restaurant is challenging people to eat a 72-ounce steak, salad, shrimp cocktail, baked potato, and roll in under an hour, you're not really helping things. I guess if a customer eats this monster in under an hour they get the $54 meal comped. I wonder how much the agony of digestion is worth for the next two days?

 Posted by Hello

View from the top



Beautiful spring day in Beverly Hills. (We're actually on the East side of Beverly Hills... the ghetto of BH, if you will). Anyway - I thought you might appreciate seeing what we see from the 10th floor as we work at Beachbody headquarters.

Wednesday, May 11, 2005

Not a bad anniversary celebration!

Had a chat today with the Beachbody community, and I am always blown away with how great it is to reconnect with people who have been a part of this family for years, and meet "newbies" who are on their way to becoming the next Beachbody stars. It was a great celebration of the sixth anniversary of this amazing community called Beachbody.

And in the midst of the chat, as I answered questions about "how do I lose the last five" or "when's the next product launch?", it occurred to me that what this place is about is not just body transformation, but a mental transformation as well. In fact I traded emails with a favorite customer later that night, and she told me how she has struggled with her results over the years, despite motivating literally thousands of people with her success in the first place. The advice I gave her might be helpful to anyone who wants to know how to not just be successful with a weightloss program, but to be HAPPY with the results:

(A) STOP JUDGING YOURSELF ON THE WAISTBAND-O-METER AND INSTEAD ACCEPT YOURSELF, IN FACT LOVE YOURSELF, SO IT WILL BE EASIER FOR OTHER PEOPLE TO LOVE YOU TOO. YOU'LL ENJOY THE WORKOUTS MORE, AND CONTINUE FOR THE LONG TERM TO GET MORE FROM THE HEALTH BENEFITS LONG AFTER THE WEIGHT LOSS AND BODY TRANSFORMATION IS ACHIEVED.

(B) STOP ABUSING YOURSELF WITH FOOD WHEN YOU GET BORED OR SAD. DON'T PUNISH YOURSELF WITH FOOD OR LAZINESS BECAUSE YOU HAVE FEELINGS. DON'T BE THE VICTIM. DON'T GIVE AWAY YOUR POWER LIKE THAT. AND DON'T LET THOSE KINDS OF FEELINGS BECOME AN EXCUSE TO NOT TAKE CARE OF YOURSELF. STOP THE CYCLE OF FAILURE/FEAR OF FAILURE BY PROMOTING YOUR OWN SUCCESS WITH HEALTHY HABITS. YOU KNOW WHAT THE HABITS ARE. EXERCISE. PORTION CONTROL AND GOOD FOOD CHOICES. THAT'S THE PART BEACHBODY CAN HELP YOU WITH - GIVING YOU THE TOOLS TO MAKE GOOD CHOICES AND FORM GOOD HABITS. ACHIEVING THE MENTAL AWARENESS OF YOUR OWN PATTERNS OF ABUSE OR NEGLECT IS YOUR JOB.

And for the record, I am as guilty of these weaknesses as anyone. That's where the community and the inspiration of the people within it come into play. They will show you that you can succeed in the first place. And in the second place, you can just as easily slip back into the old patterns. And finally, these amazing people will show you that you're always welcome and encouraged to get back to "the first place", without judgment or guilt. THAT'S the Beachbody community.

The chat ended with a great WOWY session with a great group of friends. Not a bad anniversary celebration!

A toast to Beachbody!


Jon and I toast to our 6 year anniversary, appropriately with chocolate and vanilla meal replacement shakes!

(Note: Jon had to make himself a lot shorter to fit into this frame with me. It's got to be awkward, if not simply annoying for a tall President to work beside a miniature CEO.)

My Blog Launch - Happy Anniversary Beachbody.com!

On May 11th, 1999, Beachbody got its very first customer order from a woman named Hope Putnam. She ordered the Great Body Guaranteed™ collection, and a fitness and weight loss company was born.

When Jon Congdon and I got started, we didn't know what direction the company would take, except that we wanted to use direct marketing to build a strong relationship with our customers with an eye on the evolution of the Internet for ongoing communication. With the launch of our first product, we started to get feedback from people thanking us for creating "fitness programs that work." Soon after we decided to focus, and go deeper in this category to see how much of an appetite the marketplace had for "real" fitness and weight loss solutions, with an end-game of being so successful that our customers would be "walking billboards."

Later that year we launched a product called "Winning Results." We had a test group, produced an infomercial, and learned a lot about marketing a comprehensive fitness and diet solution. But that was only a 21 day program. I pitched Jon an idea for a straight-forward 90 day program for people to focus - not for the rest of their lives pre se, but for a fixed "transformation period". That led to the development of the "Power 90® in-home boot camp for total body transformation" in 2000 with Tony Horton. I pitched the idea as a system just for men, but Jon strongly urged me to expand it to appeal to both men and women . . . thank God for that. Tony got to work designing the routines. I can remember the first time he put two pieces of tape on the floor of his apartment to explain the idea of "X-work" cardio. Easy, good stuff. (We even originally planned to sell a roll of tape with the program!) Jon and I went through the first 90 days along with Tony, tweaking the routines to meet the expectations of "anti-exercise" people like us, and reading everything we could get our hands on to make the diet plan easy and effective. We had amazing results, and when we finally tested the advertisement for Power 90, we knew we had created something exciting. It seems people were craving an approach to weight loss that appealed to their sense of logic. "For 90 days you follow these videos, eat this way, and you will lose this much weight." Simplicity, without an expensive piece of equipment to store under the bed.

In 2000, we launched Beachbody.com, and in 2001 then our Message Boards at Beachbody.com and were pleasantly surprised when real customers answered posts by people who thought any program that promised these kinds of results might be a scam. (The first post like that is still there on the boards, posted by Ashlee on 8-30-01!)

Once we had the momentum of a winning Power 90 infomercial, plus a growing community of customers, the momentum really started to pick up. We announced the first Power 90 Hawaii trip to celebrate customer success, and started to develop Slim in 6® with Debbie Siebers, based on a new "muscle tone without muscle bulk" training technique we had created, called Slim Training®. Slim in 6 took off just like Power 90 did, and the story continues with programs like P90X®, Fast 10™, Kathy Smith's Project: YOU™, Yoga Booty Ballet™, and soon-to-be-released Turbo Jam™!

Now, Beachbody has more than 100 full- and part-time employees, ships over 25,000 packages a week, and has a skyrocketing community of people that support each other in overcoming the obstacles that so often derail our fitness and weight loss goals. What started as an idea at Sunday brunch on the back of my restaurant placemat (still hanging on my wall, by the way!) has taken on a life of its own. We have overcome incredible operational issues from our fast growth, and managed to maintain the most fun environment to work that any of us have ever encountered.

But Beachbody is no longer mine, or Jon's, or even the original 20 investors who made it all possible. Now it is yours—the Beachbody community—whom we have worked to serve for six great years, and whom we are committed to serve as we strive to reverse the trend of inactivity and obesity.

Our goal is to help you make living a healthy, active lifestyle the norm. And we appreciate all the feedback you give to make us better.

In this blog, I will share the inner workings of Beachbody, including how I cope with the demands of work, life, and the ongoing pursuit of health. It's not any easier for me than it is for anyone else, except for the fact that the reminder that the need to choose to be active and eat well is "in my face" all day long.

Visit my blog from time to time, and it will be in your face too, and along the way we'll succeed at this together.

Meanwhile, happy anniversary to Beachbody, its employees, investors, customers, and friends, and to everyone who has signed-on to make this a great place to gather to achieve real results!