Achieving 1.000% growth for an e-commerce brand

Client

Healthbox (currently JouwBox) is an e-commerce company introducing their community to innovative health products and supplements by periodically shipped boxes. Visit site: jouwbox.nl

Challenge

Healthbox succeeded creating a fanbase eager to try new health products at a discount through their periodical boxes. Unfortunately, the demand fluctuated immensely, causing Healthbox to struggle with finances, logistics and brand relations. While one month’s edition sold out within minutes, the next edition didn’t move from it’s shelves (causing losses). Healthbox asked marketing guidance to achieve revenue growth and predictability.

Work

During the first conversations with the Healthbox team it quickly became clear there was a lack of clarity on which factors made editions popular and which did not (e.g. product types, brands, product value, ambassador). The products of some editions were selected and endorsed by a well-known health authority functioning as an ambassador, while a next edition was selected by the team itself. Some editions focussed on a certain topic (e.g. gut health, hormones, healthy snacks) where others did not.

We suggested a thorough client research amongst the 5000+ previous buyers. An online survey (qualitative and quantitative) made us understand which factors were decisive in making Healthbox clients buy; purchase motivation, health goals, diets, product selection criteria, product type interests, price sensitivity, timing, information needs, demographics, favourite health authorities, improvement suggestions and more. Based on the clear outcomes of 362 participants, we could formulate a new strategy for Healthbox. The strategy included clear product selection criteria, the ideal price point and timing per edition, the most relevant themes and ambassadors and above all; website and advertising messaging directly targeting the driving purchase motivation and health goals.

Impact

We presented the new offering to Healthbox’s fans in a redesigned website and campaigns, focusing on exactly those factors that made clients buy. The business model moved from monthly to quarterly editions (shipping the value of multiple smaller editions combined, saving margin on shipping costs) at the right increased price point, with the right ambassadors and products.

Revenue increased by 1.000% that quarter. Subscription was introduced and chosen by 90% of that edition’s buyers locking in the higher revenue and ensuring dependable recurring revenue. The extended timeline per edition allowed for better campaigning by the ambassadors and sourcing of products, while the subscription model’s stable sales numbers made sure no costs and products were wasted.