HerbalifeCompany overview

Digital Transformation Strategy

Herbalife focuses on transforming its distributor network digitally by providing them with insights, knowledge, and technology to better understand and connect with the customers, and grow their business. To implement this strategy successfully, they aim to capture as much consumer transaction data as reasonably possible.

(Source: Herbalife Investor Day 2021)

Understanding the Customers

Herbalife strives to improve its customers’ experience. They analyze customer transaction data to understand the goals, behaviors, and profiles of customers better.

Herbalife also plans to understand the customers’ product preferences. This data combined with artificial intelligence helps to auto-suggest the next best actions to the distributors as they build relationships with their customers. These activities are intended to improve customer activity and retention.

(Source: Herbalife Investor Day 2021)

Nutrition Clubs - A Nutritional Service

Herbalife has come up with ‘Nutrition Clubs’, brick and mortar locations owned and operated by distributors, where customers can visit and enjoy single servings of Herbalife products. Nutrition Clubs create a sense of community among distributors and are a great way to help the customers experience the products beforehand.

Herbalife has developed a suite of applications for these clubs called the Nutrition Club Experience. This feature allows distributors to provide an integrated physical and digital experience to their customers. Customers can place orders using their mobile devices and have their orders ready on arrival.

Software applications enable the multi level marketing distributors to operate their clubs more efficiently with a strong point-of-sale system and also deliver a personalized customer experience. With the point-of-sale system, distributors will receive customer information so that they can greet the customers by name and engage in healthy conversation.

(Source: Herbalife Investor Day 2021)

Data-driven Training

Herbalife focuses on building data-driven capabilities for its distributors. They are using the customer data such as goals, behaviors, and profiles of customers in distributor training. It helps the training team to figure out if that training has resonated with the distributors and whether it has translated into sales. This data drives the training team to create more tailored programs for distributors to meet their learning needs and effectively improve their conversion rates with customers.

(Source: Herbalife Investor Day 2021)

Bizworks - Tracking and Analysis Tool

Herbalife supports its distributors with the digital application called Bizwork. It helps distributors to analyze and track their business growth and downline performance. Bizwork uses predictive analytics and artificial intelligence to provide key insights to distributors, to help them manage their organizations. With Bizwork distributors get automated recommendations to follow up with their down line who require leadership support and guidance.

(Source: Herbalife Investor Day 2021)

Order Predictability

Herbalife has an order predictability AI tool that can notify distributors about the downlines who are likely to place an order, which could lead to additional volume. This tool is used by Herbalife’s most successful distributors too.

(Source: Herbalife Investor Day 2021)

Educating the Distributors

Herbalife educates its distributors all around the world, with a digital learning application called HNGrow. HNGrow has learning modules that can impact personal development in distributors, and educate them about products, nutrition, lifestyle, and the business. New distributors can take their businesses to the next level with the guided curriculum in HNGrow, showing them where they can focus their sales and leadership efforts. Experienced distributors continue to learn and grow their business with the application.

Herbalife plans to make this learning platform better by building personalized learning paths and content recommendations to distributors based on their tenure, the marketing plan level they're at, product knowledge, and business experience.

(Source: Herbalife Investor Day 2021)

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Pineapple We've been investing in tools and technology to capture customer transactions for a while. But we're in the early stages of using data-driven capabilities to enable our distributors to cross-sell and upsell in an intelligent way driven by analytics and AI.

—John DeSimone

President, Herbalife

Pineapple We are continuing to invest in our CRM platform powered by Salesforce in the US, as well as other investments in internally developed tools, such as our proprietary POS tool and our customer loyalty program.

—John DeSimone

President, Herbalife

Pineapple The demand for customer data increased significantly across multiple applications. Our users not only wanted the data, but more importantly, the insights. And they wanted the insights in an easy to access way, which led us to the realization that we needed to modernize our infrastructure and change the way we're building our tools for our distributors.

—Frank Lamberti

Chief of Staff and Executive Vice President of Distributor and Customer Experience, Herbalife

Pineapple At Herbalife, we've been building digital tools for more than 15 years now. Tools that support point of sale transactions, analytics, e-commerce capabilities, online wellness questionnaires and many other functions to support the success of our distributors and their customers.

—Frank Lamberti

Chief of Staff and Executive Vice President of Distributor and Customer Experience, Herbalife

Pineapple Our AI and IT capabilities do not end with our distributors and their customers. We can use data for predictive supply chain visibility, enabling us to manage our inventory levels more efficiency while enhancing the experience of our distributors and customers by providing visibility and tracking on their orders, which can lead to greater affinity and trust.

—Rhonda Vetere

Executive Vice President, Chief Information Officer, Herbalife

Pineapple E-commerce has expanded into the world of social media. Consumers will not only engage with distributors as they are today through social media, but they'll also expect to- the ability to transact directly within that social media platform.

—Rhonda Vetere

Executive Vice President, Chief Information Officer, Herbalife

Pineapple Our distributors trust us to equip them with the tools and knowledge to help them build and grow their businesses, and with information literally at their fingertips, our distributors are able to provide knowledgeable and personalized support to their customers, enhancing their role as trusted wellness coaches

—Kent Bradley

Chief Health and Nutrition Officer, Herbalife

72,000 clubs

Herbalife’s distributors operate at approximately 72,000 clubs worldwide, with over 11,000 in the US alone.

10,000 employees

Herbalife Nutrition operates in more than 90 countries with over 10,000 employees around the world.

120 product types

As of December 31, 2020 Herbalife marketed and sold approximately 120 product types.

6.2 million members

Herbalife has approximately 6.2 million Members, including 1.7 million preferred members and 1.5 million distributors in United States, Brazil, India, Russia, and Italy