A Case Study in Ecommerce Innovation & Growth
2020.01.20
ECI奖

Expert Comments:



Viveca Chan/ Chairman & CEO, WE Commerce&WE Marketing Group


Glam Glow is a new brand of mud based skin mask that was able to build a loyal group of followers was successfully acquired by Estee Lauder group within four years of operation.  Innovation in its use of e-commerce technology service allowed the brand to grow quickly established loyalty strong word of mouth.  Specifically, the use of advanced integration with Instagram allowed Glam Glow customers post engage Instagram uses on homepage of its e-commerce site, micro segments of brand followers who share their content.


This use of social engagement target segmentation in e-commerce is a good example on how new brands can establish its position in established highly competitive segments.


Expert Comments:

Stephan Horvath/ HackerAgency Global CMO


Implementing a tool as an upgrade is quite common but to able to do increase sales and creating buzz which leads company to be bought takes another level.  Plum Tree’s solution to the Glam Glow’s website social media tools help increase their sales fan base.  Leveraging Instagram geo-targeted store locators, they were able to harness loyal customers to attract new customers by their own social testimonials ultimately increasing their CRM capability.  This is a good case in how technology company can enhance client’s brand their company value…  a true partnership.


Background challenges

Glam Glow faced with a problem that plagues most emerging brands as they try to manage their growth – how can Glam Glow more effectively capture their own customers a higher profit margin on each product sold, rather than giving away margin while creating new customers through major retailer distribution partners like Sephora?


Thus, finding innovative ways to engage with consumers was a key reason for the Estee Lauder acquisition. it is the unprecedented levels of repeat purchases stemming from brand loyalty. So, the solution that Plum Tree offered was to an ecommerce store that would capture the customer while also providing a new distribution channel through which GlamGlow could deliver product.


Plum Tree developed an advanced integration with Instagram which allowing GlamGlow to post engage with Instagram users on homepage of ecommerce site. Meanwhile,  allowing GlamGlow to a micro community of brand followers who share their own content. GlamGlow focused on d a branded social community experience through branded short films, advanced social integrations into the site, incredible video content, some additional social tactics that lured customers toward the brand (GlamGlow) rather than the distributor. Additionally, Plum Tree configured functionality within the site that allowed GlamGlow to serve a personalized offer to capture new users within the brand email database, a separate offer that was personalized to returning customers once the configuration recognized them on site.



Innovative idea

Our purpose was to establish multiple new revenue channels that feed into the GlamGlow ecommerce site while also aggressively building the email list for GlamGlow. Our strategy was to capture GlamGlow fans customers on proprietary GlamGlow digital platforms so that GlamGlow could own those customers lists begin enabling repeat purchases through the brand’s more profitable online channels.  To lure customers away from distributors towards the brand itself, Plum Tree deployed innovations to capture the attention interest on online users away from the retailers.


Our KPIs included:

Revenue

Transaction

Email List Size


implement the course

Finding innovative ways to engage with consumers was a key reason for the Estee Lauder acquisition the unprecedented levels of repeat purchases stemming from brand loyalty.  Plum Tree developed an advanced integration with Instagram allowing GlamGlow to post and engage with Instagram users on homepage of ecommerce site, allowing to GlamGlow to a micro community of brand followers who share their own content...


Additionally, Plum Tree configured functionality within the site that allowed GlamGlow to serve a personalized offer to capture new users within the brand email database, a separate offer that was personalized to returning customers once the configuration recognized them on site. These optimizations provided a 6% increase in sales from the email channel by retargeting existing customers capturing new prospects through email -- while also directly contributing to a 20% lift in social community size


Being able to deliver free shipping to consumers is a major competitive advantage -- one that most emerging brands cannot afford because of logistics costs economies of scale, which often makes it very difficult for indie, niche brands like GlamGlow to compete with major competitors.  With an product retail price range of $29-$59, this makes things even more difficult, however Plum Tree was able to deliver a fulfillment chain that enabled GlamGlow to deliver products with free shipping in the United States through PT’s ecommerce activation services. This was a key factor in the massive success of the ecomerce program during 2014.


Additionally, Plum Tree was able to integrate all global retail locations for GlamGlow distributors into the website so that consumers we’re still provided the option to find product in their local stores -- GlamGlow was able to placate retailers who were upset by the competition d by the introduction of the brand’s ecommerce channel.



Effectiveness evaluation


Average ecommerce conversion rate of 3.45% -- well above the average expected in this industry, and even further above the expectation an consumer-targeted ecommerce site in its first year

B2C Website revenue surpassed website costs after just 28 days

Set a single-day record for Revenue in the online channel direct to consumers of $232,000 on November 10th, which was a GlamGlow record for any online channel, not just GlamGlows wholly owned channels.

Revenue clear $2 million in total ecommerce revenue in only 9 months 6 products in 2014 after have $0 in total online sales through wholly own channels prior to 2014.

Average Order Value nearly doubled during Q4 (holiday shopping period) exceeded the single-product pricing by several dollars -- meaning advanced merchandising and personalization tactics convinced online consumers to purchase significantly more products

The growth rate of the Email List increased by 20% during 2014, while engagement across all social platforms increased significantly as well


The end result of the entire strategy was GlamGlow being able to exit their existing distribution arrangements as they were purchased outright by Estee Lauder, providing them with a whole new distribution network new resources to scale their growth in ways they wouldn’t have been able to do before, and huge reason why Estee Lauder was interested in the purchase was because of the incredible ecommerce performance that GlamGlow was able to post in their first year, combined with the strong community engagement that the brand had generated on its social platforms.