In this blog, I will talk about How Dollar Shave Club uses data analytics to ensure its digital marketing strategies, and I will cover their e-mail marketing and video content marketing as these were the main important part of their digital marketing success as a startup business.
Dollar Shave Club is a company started in 2011 by Michael Dublin and Mark Levine in Venice, California. Their business is selling cheap blades than the ones available on the market. However, instead of using traditional retail channels they have decided to sell directly to their customer using a subscription model. As an online business, increasing their conversion rate as well as the number of products ordered by their current customers are the Dollar Shave Club’s goals. As any startup business, Dollar Shave Club faced a problem with implementing sampling program strategy. The company had a program where it sent samples to customers to entice them to buy new products. Dollar Shave Club found that blanket sampling is very costly. Moreover, the company didn’t have the right tool to analyze data that might help it better target the samples. Hence, they decided to use Looker Data Sciences Inc. SaaS to analyze all their data to leverage this business opportunity.
“The result is impressive; Dollar Shave Club’s sampling program is able to achieve a 100% return on investment.” (1) Dollar Shave Club is now able to know exactly what sample their clients will like based on their previous purchases and types of subscriptions.
Email marketing:
Dollar Shave Club used data analytics to better personalize email marketing. Data was being collected from email promotions, Web site traffic, and volume of customer help requests, but unfortunately, Dollar Shave Club couldn’t take advantage of that data. Dollar Shave Club was starting using Looker to analyze data and provide a better business solution. As a result, Dollar Shave Club discovered that customers who buy the Shave Butter product are likely to buy other products as well. As well, Dollar Shave Club used Looker to do A/B testing of email campaigns. Dollar Shave Club made some optimizations to the collected data to improve targeting, the brand persona, and content creation strategies. Better data analytics has helped Dollar Shave Club to strengthen its e-mail marketing program based on customer preferences.
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Video marketing:
Everyone knows how video marketing has shaped the success of Dollar Shave Club. YouTube was where they began back in 2012. Basically, their first video went viral. As a result, within the first 48 hours of their video going live, the company generated 12,000 new customers. This one of the most successful startup story that utilizes digital marketing to target their audience.
Everyone knows how video marketing has shaped the success of Dollar Shave Club. YouTube was where they began back in 2012. Basically, their first video went viral. As a result, within the first 48 hours of their video going live, the company generated 12,000 new customers. This one of the most successful startup story that utilizes digital marketing to target their audience.
“We do use irreverence and humor as a really critical mechanism to deliver that relatability,” says Dollar Shave Club CMO Adam Weber, “That’s what we really aim to do from a tonality standpoint that I think is different than how brands have talked to guys in the past.”(2)
Dollar Shave Club uses video as an amazing platform for storytelling. Videos reach a large number of consumers and establish a much deeper emotional connection with video than you can in other creative venues. Telling stories via video offers a lot of unique capabilities that something like television doesn’t offer.
Unlike traditional TV advertising, people are watching Dollar Shave Club video. The 94-second spot is entertaining, engaging, and hilarious. Dollar Shave Club uses humor, social media, and originality to connect with customers.
HubSpot shares a number of compelling stats that show why diversifying content marketing to include video are a smart move:
- 92% of mobile video consumers share videos with others
- More than a third of all online activity involves watching videos
- More than a third of consumers trust video ads
- 80% of users can recall a video ad they viewed in the last 30 days
- Enjoyment of video advertising increases purchase intent by 97% and brand association by 139%
What the FAQ Marketing Campaign:
On their latest marketing campaign, which is called “What the FAQ?”, It’s a video series that Dollar Shave Club has basically used to address a lot of barriers that were hearing their customers talk about as to why they didn’t want to sign up.
“The videos answer questions around contracts, quality of razors, what members think of the razors, if it's possible to switch razors, what happens if you don't grow enough hair to justify a monthly subscription, what makes DSC so special compared to other services and why people should try DSC in the first place.The campaign will live online in pre-roll ads and other formats, including use as modules serving as actual FAQs on the website, Mr. Brownstein said, adding that it has production quality that would allow adaptation for TV if needed.”(3)
As a startup business, Dollar Shave Club has a unique idea and business model that cannot be duplicated. It is true, at their beginning data analyzing and interpreting were their real struggle. However, after implementing the right business analytics tool, Dollar Shave Club had leverage that opportunity to derived massive growth in ROI and number of subscribers. Video marketing and email marketing were their most powerful tool that Dollar Shave Club has utilized to engage with their customers and that made a difference in the company success.
I like this ad, Dollar Shave do good marketing strategy.
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