Cellese AnteAGE Serum & Accelerator: Loyalty program AO
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free skin care · Tue May 15, 2012 1:20 pm

erg wrote:

yes, loyalty and sales are different. But really, do you hear us when we say 5% won't really make a difference? 10% may for some, but I would think that would be the bare minimum.

I'm listening.

free skin care · Tue May 15, 2012 1:21 pm

loopylori wrote:

DarkMoon wrote:

The birthday gift with purchase I mentioned is a FULL SIZED product, and they are in the pricey range!

DM am I right in thinking you would like a birthday gift?
I am not 100% sure that I am reading your posts correctly. Wink

LOL. I was pointing out in an earlier post the discounts, samples and B-Day gift Sephora offers, so I added that in my second post!

B-day gift to loyal customers are quite nice IMHO! Laughing

free skin care · Tue May 15, 2012 1:23 pm

sigma wrote:

I believe most companies sell to practitioners with 40%-50% discount rate, and still make money.

So imho to make it a truly attractive and affordable the loyalty discount has to be around 30%-40% percent (it could be binding - a person agrees to buy at least for 6 months to get that type of a discount, and a failure will automatically up the customer's cost).

Just my 2 cents...

Hmm. interesting idea. I guess you might achieve the same thing by backloading the discount (e.g. the third in a series of 3 over 6 months would be deep discount

free skin care · Tue May 15, 2012 1:27 pm

I don't personally like sales contracts where you are pre-committed to purchasing. Always feels heavy handed to me. I like pay-as-you-go but know that as a loyal customer you are getting the best possible deal.

free skin care · Tue May 15, 2012 1:29 pm

sigma wrote:

I believe most companies sell to practitioners with 40%-50% discount rate, and still make money.

The practitioner is basically buying in bulk, as a retailer would. They are taking on the inventory risk, and have to invest in marketing. So bit of a different deal.

free skin care · Tue May 15, 2012 1:29 pm

DrJ wrote:

I don't personally like sales contracts where you are pre-committed to purchasing. Always feels heavy handed to me. I like pay-as-you-go but know that as a loyal customer you are getting the best possible deal.

So does that mean you will or will not announce a loyalty discount?

free skin care · Tue May 15, 2012 1:32 pm

DrJ wrote:

sigma wrote:

I believe most companies sell to practitioners with 40%-50% discount rate, and still make money.

The practitioner is basically buying in bulk, as a retailer would. They are taking on the inventory risk, and have to invest in marketing. So bit of a different deal.

Yes true, however as long as the product sells they gain the advantage of making a profit, not true for customers.

free skin care · Tue May 15, 2012 1:38 pm

DarkMoon wrote:

DrJ wrote:

I don't personally like sales contracts where you are pre-committed to purchasing. Always feels heavy handed to me. I like pay-as-you-go but know that as a loyal customer you are getting the best possible deal.

So does that mean you will or will not announce a loyalty discount?

No, we are committed to doing this. Just working out the structure.

free skin care · Tue May 15, 2012 1:41 pm

DrJ wrote:

DarkMoon wrote:

DrJ wrote:

I don't personally like sales contracts where you are pre-committed to purchasing. Always feels heavy handed to me. I like pay-as-you-go but know that as a loyal customer you are getting the best possible deal.

So does that mean you will or will not announce a loyalty discount?

No, we are committed to doing this. Just working out the structure.

Thanks for the answer, and if I seem difficult remember my father owned a wholesale/retail operation for close to 50 years and I worked there, we had different discount amounts based on volume. We never sold to any customer at full retail price! Very Happy

free skin care · Tue May 15, 2012 1:57 pm

Quote:

The practitioner is basically buying in bulk, as a retailer would. They are taking on the inventory risk, and have to invest in marketing. So bit of a different deal.

That is usually not the case in alternative medicine field - neither the quantity discount, nor marketing is expected from the practitioners. Most skincare companies have a "minimum order" policy, and it is not a huge amount either; some do not have even that - they are just happy to distribute their product.

Personally I hate all these coupon/"buy 1 get 1 free" techniques (seems for someone with an intellect and free time from a "New Jersey Housewives" show); I prefer to know in black and white what my options are.

One can derive a formula - that for a single purchase - price X, with commitment for 2 months - price 0.9X; for 3 moths - 0.8X, for 6 months - 0.6X.

Just some thoughts...

HTH

A

free skin care · Tue May 15, 2012 2:18 pm

sigma wrote:

Quote:

The practitioner is basically buying in bulk, as a retailer would. They are taking on the inventory risk, and have to invest in marketing. So bit of a different deal.

That is usually not the case in alternative medicine field - neither the quantity discount, nor marketing is expected from the practitioners. Most skincare companies have a "minimum order" policy, and it is not a huge amount either; some do not have even that - they are just happy to distribute their product.

Personally I hate all these coupon/"buy 1 get 1 free" techniques (seems for someone with an intellect and free time from a "New Jersey Housewives" show); I prefer to know in black and white what my options are.

One can derive a formula - that for a single purchase - price X, with commitment for 2 months - price 0.9X; for 3 moths - 0.8X, for 6 months - 0.6X.

Just some thoughts...

HTH

A

I like it, but, there is another variable. Usage differs. Some people will go through 3 in 6 months, others 4.

free skin care · Tue May 15, 2012 2:26 pm

True - but one can get more creative ( same as before but time period (within 6-8 months, within 4-6, ...).

free skin care · Tue May 15, 2012 3:36 pm

Thanks, That helps. Any examples from leading edge biotech companies?[/quote]

Lifeline skin care had a buy one get 50% off the second one at Valentines Day. I was going to buy it but I hadn't used the product yet and I didn't want to got stuck with something I didn't like. So maybe on special holidays you could have a sale, but I agree that it needs to be at least 10%. I also don't like being locked into a contract but that's just me.

free skin care · Tue May 15, 2012 3:44 pm

Keep in mind that you are at the early stages of adoption...right now your top priority should be encouraging repeat buyers and overall brand awareness (through word of mouth, beauty bloggers, etc.) That may mean that you have to discount a bit more up front to get that word of mouth going across a bigger audience for your early adopters....especially when it takes a long time to see results.

I know you are not a fan of Dr. Obagi and the Obagi Medical products, but you should look at the business model that Dr. O came out with when he launched his own ZO line. He said that he wanted to be the best product line out there, but essentially priced himself right out of the consumer-focused market and the products are now gone from most retailers. Now they are focusing on the professional and spa markets because ordinary consumers just aren't going to cough up the money. I think there are some lessons to be learned there.

It comes down to volume...do you want to make a larger margin on a small volume of sales, or do you want to make a smaller margin and have higher sales?

I would have your agency do some pricing and loyalty research and see what the market will bear for a NEW higher end brand (since you really can't compete with La Mer right now). You can do that via web panels or focus groups.

free skin care · Tue May 15, 2012 3:48 pm

And for the record, I think the discount needs to be 20% for repurchasers...especially if they buy more than one thing at time. Buy more, save more.

If we like the product, we'll stock up.

free skin care · Tue May 15, 2012 3:55 pm

I vote a definite no on contracts. Reminds me of the "convenient monthly replenishment" programs that are a royal PIA to stop if you don't want any longer.

free skin care · Tue May 15, 2012 3:59 pm

rileygirl wrote:

I vote a definite no on contracts. Reminds me of the "convenient monthly replenishment" programs that are a royal PIA to stop if you don't want any longer.

A second VETO on contracts! If we are happy with both the product and the price you will have loyal customers!

free skin care · Tue May 15, 2012 4:06 pm

Speaking of stocking up. What is the expiration date of these products. So if we were to buy 3 or 4 bottles at one time, would it still be good/active by the time we used it.

Also if you are going to do some kind of focus group or survey you would have to talk to people outside of Orange Co. I live there and I'm always amazed by the amount people spend.

free skin care · Tue May 15, 2012 4:08 pm

BTW, many loyalty programs are tiered meaning that if you spend $/year you get this reward, and if you spend $$/year you get a better reward.

Sephora does that....I belong to their VIP level, and get better discounts because I spend over $350/year (your tiers would obviously need to be higher!).

You might also want to check out the Botox Brilliant Distinctions Program, since that is a loyalty program for a higher priced product designed to encourage repurchases over a designated time period (like every 3 or 4 months I think).

free skin care · Tue May 15, 2012 4:24 pm

If I had a choice I would vote for a better pricing, period.

In the absence of that, I am not sure that 20% discount would be sufficient to ensure mass purchasing of the products on the continuous basis - since one still needs additional products - cleanser, sun screen, etc.

By "a contract" I meant - a smart software (corresponding to the smart skincare), which is a breeze to write - You click one button, and your commitment is "activated"; if within an allotted period of time you have not purchased according to the plan - it automatically adjusts your plan and either bills your CC for the difference or sends the bill to you. The worse you can end up with is paying an original full price for the one purchase. I understand the inconvenience of remembering to cancel the contract by a certain deadline, etc. No PIA - here, unless clicking on a button is too much to ask.

It was just an idea, but there needs to be a consistent ongoing way of purchasing the products on a regular basis if the mass distribution is desired.

I bought a set for my mom, and would have gladly bought another one for myself, but at that price point choose to wait a bit to do it.
And I am a high end cosmetic consumer, but at that price and having other effective (granted less effective, but never the less) skincare products in today's economy it would give a pause to most people I know.

For myself - 20% would probably do it, for most of my girlfriend - would not.

So, as Bethany had so eloquently put it - it is a choice of lesser amount of items at a higher price or more products at a lower price point.

free skin care · Tue May 15, 2012 4:37 pm

DrJ IIRC you have said you would like to make your products more widely available, but obviously you are constrained by the need to make a profit and practicalities such as EU regulations

Introduce a Friend deals would be a turn off to some because
- intimates new customers are more important than existing clientele
- easier for people with wealthier friends and relatives to get a discount than those with less wealthy friends and relatives
- easier for people who are willing to invent fake friends and fake accounts
- not realistic for those overseas customers who are already using a forwarding service and risking customs attention to persuade their friends or family to do the same so easier for US citizens
- it is uncertain/ makes budgeting difficult. Some potential customers might be persuading their spouse to 'allow' a first purchase based on the net cost of subsequent bottles. There are plenty of husbands who don't know or care what your competitors charge
- doesn't encourage customers to rave about your product on forums or to acquaintances. If the customer service and discount is second-to-none you tell anyone and everyone.

free skin care · Tue May 15, 2012 4:48 pm

Firefox7275 wrote:

DrJ IIRC you have said you would like to make your products more widely available, but obviously you are constrained by the need to make a profit and practicalities such as EU regulations

Introduce a Friend deals would be a turn off to some because
- intimates new customers are more important than existing clientele
- easier for people with wealthier friends and relatives to get a discount than those with less wealthy friends and relatives
- easier for people who are willing to invent fake friends and fake accounts
- not realistic for those overseas customers who are already using a forwarding service and risking customs attention to persuade their friends or family to do the same so easier for US citizens
- it is uncertain/ makes budgeting difficult. Some potential customers might be persuading their spouse to 'allow' a first purchase based on the net cost of subsequent bottles. There are plenty of husbands who don't know or care what your competitors charge
- doesn't encourage customers to rave about your product on forums or to acquaintances. If the customer service and discount is second-to-none you tell anyone and everyone.

Not to mention that those programs statistically don't perform well because most people referred are not qualified candidates - meaning they may not be ready to buy, may not even be interested, or may not be open to the pricepoint.

free skin care · Tue May 15, 2012 4:51 pm

Here are some examples of skin care company loyalty programs:

http://www.dhccare.com/DHC/CustomerService/LD_Description.aspx

http://www.greenorganics.com.au/green-organic-reward-points-voucher.php

http://www.voilaskincare.com/loyalty-program/ (OMG Dr. J don't look at the products on this website you will gag!)

http://www.touchofskincare.com/environ-discounts.html

I would like the AnteAGE program to be more generous than 5 or 10%. I think at least 20%. And I would like to see them right away. I don't want to wait to buy a certain number of times before I start getting a discount. I don't want to see anything that requires a contract or having a credit card automatically billed. Maybe don't have it for a certain number of times that you buy the product over a year maybe just keep track of the number of times a person orders over any period of time. Then you could give an "anniversary" bonus. Like every five times you buy the product you get an extra 10% off.

free skin care · Tue May 15, 2012 5:13 pm

Something else that should be considered the number of views on the Review thread alone in just under one month are 18298, we have 154 guests reading the forum as I type, which is common on a daily basis. So AnteAge is being noticed by people who choose to only read but have yet to join EDS. My thoughts on that is with a decent discount a number might just be inclined to join and try the product seeing that a discount is being offered. Just a thought?

free skin care · Tue May 15, 2012 9:27 pm

I've always liked how EDS increases the discount you get the more that you post. I'd be interested in a program that increases your discount as you buy more, not necessarily at one time, but total purchases.

Also, consider "refer a friend" discounts.

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