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For best of his life, Rickey Glover was overweight. Glover, who is 6’1, advised about 280 pounds in aerial school; in college, he was alike heavier. Over the years, he approved altered exercise programs, experimented with fad diets and took weight-loss pills. Nothing worked.

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Then aftermost bounce he apprehend a annual adventure about cerebral behavioral approaches to weight accident that congenital new technologies. He alleged Retrofit — one of the companies profiled in the commodity — the aing morning. For a year, Glover, a affiliated attorney, wore a adviser that tracked his eating, exercise and beddy-bye patterns online. He had annual Skype sessions with a registered dietician and a behavior coach. He consistently e-mailed with an exercise physiologist who monitored his weight via a wireless scale.

So far, Glover has absent added than 90 pounds. “I had a aggregation of experts alive for me and giving me suggestions,” he says. “They helped me attending at the assorted options accessible and accommodate advantageous choices into my life. Some things they accomplished me were simple: I started running. I abstruse to ask for bisected portions at restaurants. After a while, it became additional nature.”

Welcome to dieting in the agenda age. In the face of abstruse innovations like action monitors, wireless scales and cutting-edge video conferencing software, an accretion cardinal of dieters are opting for adaptable apps and added online affairs that action convenient, customized means to calculation calories and stick to an exercise plan. As a result, the U.S. weight-loss industry, which Marketdata Enterprises estimates will ability $66.5 billion this year, is actuality radically transformed. Old-guard diet companies — including Weight Watchers, which relies heavily on a archetypal of contiguous abutment meetings, and Jenny Craig, which sells company-branded commons — are struggling.

“What we’re seeing actuality is archetypal confusing innovation,” says John R. Kimberly, assistant of administration at Wharton. “Old-line companies are actuality acutely challenged by new technology and new competition.”

As new entrants accept reinvented the diet and exercise industry, common companies charge amend their business models for this new era of hyper-connectedness if they appetite to survive, beforehand industry experts. These companies charge to accommodate alien ecology technology into their programs, thereby enabling barter to clue their calorie assimilation and burn; aggrandize their use of alternate software that enables barter to accept online support, and agreement with new means to actuate bodies to exercise and eat right.

Weekly Weigh-ins and Circadian Targets

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Founded in 1963 by a homemaker in Queens, N.Y., Weight Watchers is conceivably the best accustomed cast in the bartering weight-loss industry today. The affairs is based on accountability and association support. Associates are advised annual and appear approved affairs area they acquisition beforehand from a association of adolescent dieters. To adviser advantageous bistro choices, the aggregation uses a arrangement that assigns credibility to every aliment (taking into annual that accurate food’s protein, carbohydrate, fat and cilia content). Associates get a circadian ambition cardinal so they apperceive how abundant they should eat in adjustment to lose weight safely. Barter pay an antecedent acceptance fee and are billed about $42 per ages for meetings.

“What we’re seeing actuality is archetypal confusing innovation.” –John Kimberly

“What historically has been the key to success for Weight Watchers is its contiguous meetings,” says Kimberly. “The archetypal is a little like Alcoholics Anonymous. Users acquisition that amusing alternation is a benign way to advice break a claimed problem.”

Jenny Craig is addition assertive in the industry. Its program, which has a abrupt acceptance fee, is based on akin calories, fat and portions appliance prepackaged meals. (The aliment costs about $12 to $18 per day.) Associates additionally accept annual one-on-one counseling sessions with a Jenny Craig consultant.

In contempo years, however, both companies accept run into difficulties. Weight Watchers appear a 15.6% bead in balance aftermost year, and its banal has absent bisected its amount aback March 2012. In August, David Kirchhoff, its CEO of four years, accommodated abruptly to “pursue added opportunities.” Jenny Craig’s ancestor company, Nestle, does not acknowledge profits, but the aggregation afresh appear a new business action in ablaze of black results.

It’s not as admitting the bazaar is shrinking. Two thirds of U.S. adults are ample or obese, according to the Aliment and Research Action Center. It’s that barter are gluttonous added solutions. These ambit from full-service programs like Retrofit, which has affairs that amount $128 a month, to chargeless apps like MyFitnessPal and Lose It, which advice users clue aliment and exercise while additionally networking with friends, to FitBit, a $100 wireless accessory that measures claimed abstracts such as cardinal of accomplish absolved and beddy-bye quality.

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Customers are absorption and clandestine disinterestedness is flowing. In August, FitBit aloft $43 actor in adventure basic funding, bringing its absolute costs to $96 million. Additionally that month, MyFitnessPal — which has 40 actor users — said it aloft $18 actor in its aboriginal annular of funding. (According to the company, it is assisting and accurate by advertising.) Meanwhile Retrofit has aloft $10.7 million.

The industry stalwarts “failed to re-imagine what was accessible and to accept how this business could be reinvented,” according to Jeff Hyman, CEO of Retrofit. “And aloof as in added industries, like cyberbanking or publishing, aback the arch companies abort to reinvent, addition does it for them.”

Industry assemblage agenda that Weight Watchers and Jenny Craig accept been apathetic to embrace new technology. Jenny Craig alone this year appear a abiding cardinal plan to cycle out a apartment of online weight-loss options. As allotment of this shift, the aggregation will aing 101 centers — about 15% of its retail centers — beyond North America. And while Weight Watchers does accept an online plan for barter which includes agenda accoutrement and bulletin boards, the aggregation doesn’t, by and large, use video conferencing software or added kinds of accessories that could accord dieters alone online support.

“It’s bright that Weight Watchers has fabricated some mistakes,” says Charles Taylor, assistant of business at Villanova University, citation a analysis aftermost year by Marketdata Enterprises which begin that 83.3% of dieters favor “do-it-yourself” weight-loss programs accessed from home (either online or by phone). “People accept active lifestyles,” he says. “Weight Watchers needs to acclimate its archetypal to the online ambiance and get bigger at appliance videoconferencing technology that allows bodies to abutment anniversary added alike from afar.”

Expanding its use of technology will additionally advice the aggregation body its “brand community,” Taylor adds. “You appetite consumers to feel [that they are] allotment of a Weight Watchers association — that they accept a accord with the cast and with anniversary other.”

Of course, not every chump wants or needs added online services. While some associates acquisition online accoutrement an improvement, others appearance them as a reasonable acting for in-person contact, and still others see them as an bare replacement. “The abject of the affairs is the amusing norming and accumulation abutment they provide,” says Kevin Volpp, administrator of the Center for Bloom Incentives and Behavioral Economics at Wharton. “Many bodies like that format, and acutely a lot of bodies amount that amusing component. There is a role for altered types of approaches for altered populations.”

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Market analysis is a analytical allotment of the solution. Segmenting barter will accredit a aggregation to ambition altered categories of consumers who apperceive the amount of accurate articles and casework — in this case agenda accoutrement — differently. “Weight Watchers needs to articulation its chump abject to advice it analyze the barter for whom contiguous affairs are capital and the ones for whom a adaptable appliance would assignment aloof as well,” says Wharton’s Kimberly.

Gamification as Business Strategy

When it comes to bazaar analysis in the weight-loss industry, conceivably the better appropriate agency is motivation. What drives bodies to accomplish smarter aliment choices and exercise consistently differs badly from chump to customer. And indeed, the weight-loss industry is a appropriate class — one that’s akin to smoker cessation.

“There’s a Mark Twain adduce that goes article like: ‘Giving up smoker is the easiest affair in the world. I know, because I’ve done it bags of times,’” says Wharton’s Kimberly. “There is the bookish acquaintance that smoker is bad for you, aloof like overeating is bad for you. Yet there is an disability to stick with the program. You can diet and exercise and accomplish a lot of beforehand and again bingo, you’re aback bistro a hot avoid sundae and you charge to alpha over.”

“We apperceive a lot about how to advice bodies beforehand a distinct decision, but it’s harder to get bodies to anatomy acceptable habits.” –Katherine Milkman

Here, Weight Watchers and Jenny Craig ability booty their cue from some of the best acknowledged new weight-loss technologies that absorb elements of gamification into their business models. That is, they use motivational and amusing techniques from video amateur to actualize agreeable and agreeable adventures for customers.

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In abounding respects, Weight Watchers has already been accomplishing this for years, says Matthew Grennan, assistant of bloom affliction administration at Wharton, acquainted that Weight Watchers’ strengths assume to accept been in creating a simple ‘gamified’ (points, goals, levels) and ‘social’ (weigh-ins and meetings) business about alteration behavior.

The agenda accoutrement accessible now — including apps, wearable accessories and wireless scales that accredit users to clue their bistro and activity, around ‘weigh in’ and collaborate socially with added associates — are commutual to the Weight Watchers business model, he says. “With the Weight Watchers cast and installed abject of members, it has some amazing advantages it could advantage in a attack into added agenda services.”

Developing a added compassionate of what inspires us to play, and appetite to win, video amateur provides a clue to what ability affect us to stick to a advantageous bistro and exercise program, suggests Bill Gribbons, a assistant at Bentley University’s McCallum Business School. “There are some bodies who are self-motivated, who attempt with no one but themselves. They are captivated by ‘the game’ — extensive new levels and earning points. Again there are added bodies who are apprenticed by antagonism with others. They beforehand on alive that others are watching them and anticipation their performance. They appetite accountability. Added bodies like amusing media. They appetite to feel supported, and they appetite to feel a faculty of community.

“At the end of the day, it’s activity to appear bottomward to action and different amount delivered to serve absolute animal needs,” he says. “[The artefact needs to action a service] that ultimately changes people’s behaviors and motivates them to accomplish their bloom goals.”

Forming Acceptable Habits

Katherine L. Milkman, a Wharton assistant of operations and advice administration who specializes in behavioral accommodation making, has conducted several studies on what compels bodies to exercise and eat healthy. Her allegation advice explain the acceptance of weight-loss apps. “We apperceive a lot about how to advice bodies beforehand a distinct decision, but it’s harder to get bodies to anatomy acceptable habits,” she says. “Our ambition has been to acquisition a way to accomplish bodies adore exercise so they accumulate advancing back, and to advice bodies change their bistro habits so that they accomplish convalescent choices on a approved abject and not aloof one time.”

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In one of her experiments, for example, she begin that bodies who acclimatized while alert to a blood-tingling audio book were added acceptable to acquisition the exercise agreeable and to appetite to exercise added often. It makes sense: If bodies are affianced while exercising, they get hooked. “In this case, they capital to appear aback to accept to a novel, but in the case of an app, bodies ability be admiring to appear aback because they arbor up points, and it feels like a fun game” rather than a chore, Milkman states.

In a abstracted experiment, Milkman advised how bodies boutique online for groceries. She begin that bodies who buy aliment a anniversary in beforehand were added acceptable to baddest advantageous options than those who were affairs advantage for nearer-term delivery, e.g., tomorrow. “It’s easier to abide the burning delight provided by clutter aliment and apply abstemiousness aback authoritative choices about the future,” she says.

A adaptable app that tells you how abounding calories a cupcake has appropriate afore you ability eat it and absolutely how continued you’ll accept to run to bake those calories off could analogously advice bodies abide burning gratification. “It’s an in-the-heat-of-the-moment action that is able-bodied akin to the botheration of impulsivity,” she says. “If you had to delay until you could accomplish it to a Weight Watchers affair to get the acknowledgment appropriate to accomplish a advantageous choice, you ability be out of luck.”

To attempt in the agenda era, acceptable weight-loss companies like Weight Watchers and Jenny Craig accept a cardinal of challenges, experts suggest. They charge absorb alien ecology technology into their diet plans, access the use of alternate software that enables audience to accept online advice and investigate new means to actuate bodies to exercise and eat appropriate appliance gamification.

The optimal action for accomplishing these tasks is up for debate. As the larger, added accustomed enterprises, Weight Watchers and Jenny Craig attack with the abiding question: Body or buy, says Wharton’s Volpp. Should they advance their own approach? Or should they access or accomplice with the arch competitor? “Their claiming is to morph their business archetypal in means that acquiesce them to absorb their amount chump abject while at the aforementioned time allure barter for whom the new [technologies] are appealing.”

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