Dan Chard: Yeah. Typically what we do is, and this rotates depending on what we’re trying to test, so we work quite consistently with our coach leadership to identify different things that we want to test. So, these coaches were selected based on their ability to pivot, to test a new message, and based on their, I’ll say, performance in the past of being able to generate activity from their client base. So, they’re not — so, we didn’t go out and try to find — we didn’t pre-screen them to find out whether they were open to the idea. We took a small sub-sample of our over 40,000 coaches and with a very specific focus on understanding how clients that they pulled in would respond, and also how coaches would respond to this new model of creating a partnership between clinician, coach, and client.
And what we found was very positive. I think there was initially a lot of questions from our coaches about how this might work. And as we have proceeded through the pilot, what we have found is that there are — there is an increasing number of clients who are being coached, who are currently on medical weight loss, and that this addition of the ability to offer this service, if you will, of a prescription for medically-supported weight loss along with the program supported by an OPTAVIA Coach has significant appeal. So, with that in mind, we have moved from phase one of that pilot to phase two. So now what we’re really specifically focused on is understanding what a medically-supported weight loss client or customer looks like as they move through their health transformation journey with the coach.
But initial results were positive enough for us to move to the next phase. And we have a strong belief that there’s some — that the OPTAVIA program — lifestyle program that now includes the ACTIVE line is actually more relevant than it ever has been before, but it requires us to be able to offer that ability for that 50% who want medically-supported weight loss to be complete.
Jim Salera: Thanks. That’s helpful color. Maybe since you mentioned the ACTIVE line, if I could shift to ask a question or two there? It sounds like it’s really meant to be complementary to someone who’s already engaged with the broader program. Do you have a sense for if there’s an opportunity to lead with ACTIVE for maybe a customer that’s at kind of their target weight already but wants to help — wants to maintain that and wants a kind of a collaborative environment where they can work with a coach? Or is it really something that comes in after the client has already signed up for the broader program, and that just kind of helps them as they get closer to their weight loss goal?
Dan Chard: Actually, a little bit of both. What it does is it expands our addressable market significantly, and it does that by — both the examples that I used. For those who are coming in and interested in weight loss specifically, it allows our coaches to include the habit of healthy motion or exercise as part of that program. From that standpoint, it helps drive up lifetime value both by increasing expenditure while they’re on program, as well as extending the lifetime value as they transition off. It also allows us to extend that target to those who are already closer to their healthy weight and are focused on moving more towards an optimal health state in their health journey. And so in that case, it can take somebody who is already at a healthy weight and improve their overall health by adding exercise to it.
Equally important, and the third reason that we’ve talked about this, is adding the ACTIVE line and an ACTIVE program completes our overall lifestyle management solution. I don’t think it’s lost on anyone that all of the research that was done, clinical research by the medical weight loss pharma companies, their claims are tied to healthy diet or reduced calorie diet and increased activity in addition to taking the GLP-1 drugs. And so, the addition of the ACTIVE line and coaches who can coach to increase physical activity completes our offer from that standpoint as well, allowing us to be very complimentary and even at the center of the long-term solution for those who are using GLP-1 drugs.
