In fact, we saw gross margins ratchet up each month of the second quarter, a very good early indicator that our strategy is sound. We anticipated that there would be a learning period for both customers and Nutrisystem alike once we flip the switch on the new rate card. Since we were introducing a new pricing strategy that customers had not seen before, it has taken us some time to optimize conversion.In fact web conversion has been a challenge all year. We are seeing fairly good response across the board to our marketing efforts but conversion has been challenged as we educate new customers about the internal [ph] of the Nutrisystem program and now educate all of our customers new and returning about our new three-tiered pricing program. Mike Amburgey will talk in a moment about some steps we have taken to optimize conversion and how we expect to further leverage the new rate card in an upcoming new third quarter promotion.
NutriSystem's CEO Discusses Q2 2012 Results - Earnings Call Transcript
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