Omnichannel in a box – How brands are leveraging subscription boxes in the era of “banner blindness

1. Omnichannel in a box – How
brands are leveraging
subscription boxes in the era of
“banner blindness”
NGRetail Summit, October 18-20, 2017 | Fairmont Mayakoba, Mexico
© 2017 FabFitFun

2. Hello, I’m David Oh
Chief Product Officer & Head of Growth @ FabFitFun
@davidyoh david@fabfitfun.com linkedin.com/in/davidoh
In the past 3+ years, I’ve lead Product Management, Marketing,
Engineering, Data Science, and at times, even our IT
infrastructure. I’ve been involved in some kind of subscription
based business for the last 20+ years.

3. Topics Covered Today:
• Subscription Commerce 101 (3 min)
• FabFitFun Basics: Commerce, Content, Community (5
min)
• Omnichanel in a Box – a detailed look at the customer
journey from the feed to the front door. Personalization,
Customization, and Feedback. (10 min)

4. Topics Covered Today:
• Collaboration and Partnership - The symbiotic
relationship between subscription companies and
brands. Why we need each other. (5 min)
• Focus groups 2.0. The convergence of big data,
online and the offline (5 min)

5. How many of you are
involved in some kind
of subscription model?
Whether it’s your business, marketing efforts in that business,
etc

6. What are benefits?
What are some
drawbacks?

7. Who we are.

8. We are…
FabFitFun is a direct-to-consumer demand generation
platform that inspires happiness and personal growth
through discovery. The multi-platform lifestyle brand
is the go-to community for everything women need to
feel good from the inside out.
(We send boxes every season to our members, 4 times a year for $49.99
each.)

9. -OUR COMPANY
FabFitFun is female co-
founded and amazing women
make up 71% of the entire
company.
- OUR LEADERSHIP
is 75% women (director level
or higher) and our senior
executives (VP or higher) is
43% women.
We are Diverse

10. The Box, Content, and
Community.

11. The Fall 2017 Box
2-2 items we build ourselves. 1-2 items are
sponsored (cottonelle), rest we work with
our partners to provide these items at cost

12. The Box

13. We are also an online magazine…

14. We are also an online magazine…
Approximately 750,000 unique
visitors on a month.

15. And a Video Factory
Roku, Apple TV, Amazon Fire

16. And a Community

17. Our Growth Story. March 2013 - September 2017
Censored

18. We are have startup growth, but…
We are cash-flow positive.
We’ve only raised $3.5 in outside capital.
We are going to reach 120-130m in revenue this year.
We hire slowly– we’ve only reached 160 employees
including warehouse employees recently. Most of our
directors were promoted from within.

19. We are have startup growth, but without the
burn. We are a stable company.
Our blended CPA (cost per customer acquisition) is equal
to the COG (cost of goods for the box).
With OPEX, we just need about 10% of our customers to
come back the next billing season to recoup all of our
costs. This means that we are 100% ROAS positive on
every new customer we acquire.

20. Omnichanel in a Box – a detailed
look at the customer journey from
the feed to the front door.

21. Marketing Onboarding
Survey,
Choices,
Customize
Receive First Box
Feedback
We take data and
create models.
Engagement/Sales
Addons,
Content,
Giveaways, Events

22. Marketing
•Influencers, Facebook, Pinterest, Snap.
•Retargeting
•Events, Pop-up Stores
•Placement during Events

23. O u r I n f l u e n c e r N e t w o r k

25. Onboarding

26. FabFitFun sends out post-box surveys to gather detailed information
about each product in the box
Your brand has the option to questions in the survey
FabFitFun receives over 25% completion rate on surveys for each
season
Each brand receives a custom wrap-up report detailing the results from
the survey as well as the number of impressions garnered from the
overall campaign

27. PARTNERSHIP OPPORTUNITIES

29. S P RI NG 2 0 1 7 :
MO RE
T HA N ME
M O R E T H A N
M E V I D E O
W I NTE R 2 0 1 6 :
S T A RL I G HT
FOUNDAT ION
FA L L 2 0 1 6:
P E NCI L S O F
P RO MI S E
p h i l a n t h r o p i c p a r t n e r s
FabFitFun is committed to partnering with charitable organizations each season and promoting
their causes to its community. See a highlight below of past partnerships.
S UMME R 2 0 1 7 :
JOYFUL
HE A RT
FO UNDA T I O N

30. How we help brands beat banner blindness.
• Sampling + Product Placement (Better than any
Focus Group)
• Custom Content to Millions of Women at
ridiculously low CPMs
• Access to FabFitFun Influencer + Blogger Network
(We have the best in class network)

31. We haven’t forgotten about experiential marketing, straight
into mobile with AR

32. Addons

33. 523k likes
449k followers
152k followers
134k followers
60k+ followers
Promoting your brand through our social media
channels is an effective way to build customer
awareness, generate social impressions,
increase brand engagement, and create a fun
and positive image.
TOTAL REACH: 1.3MM+*
*Numbers as of August 28, 2017.
s o c i a l m e d i a

34. d e d i c a t e d e m a i l s
- Target our newsletter of 2MM+
- Your brand owns 100% of the messaging
- Option to geo-target
PARTNERSHIP OPPORTUNITIES

35. - Sponsored content on fabfitfun.com (2MM monthly uniques) or our network of blogs
- Branded content series on fabfitfun.com
- First-person articles, reviews, and recommendations from our editorial team
- Amplification on FabFitFun and / or blogger social media channels

36. Leverage the power of video through branded content on FabFitFun TV and across our social media channels.
FabFitFun TV is a members-only streaming service that provides our members with access to exclusive video
content anytime, anywhere. Promoting your brand through video is a creative and organic way to engage our
audience.

37. This is an example of custom content we made for one of our box partners.

38. Target our entire community of women by offering a digital offer/coupon that directs to your site.
FabFitFun features offers as an exclusive perk for members only. Members simply click to copy the
code and conveniently access your brand’s website to redeem the code and complete their
purchases.
e x c l u s i v e o f f e r s

39. Live Events
If you are a box partner,
you will be included in
that seasons event
Sponsor a FFF event
through branded activations,
signage,
and / or digital content
FFF can curate an event
exclusively featuring
your brand
1
2
3
Access our coveted network of celebrities, media, and top tastemakers through our events.

40. p a s t e v e n t i m p r e s s i o n s
FabFitFun Launches: ISH
*125,000,000+
Impressions
Above SIXTY, Beverly Hills
High Tea Q+A with Whitney Port
*84,961,828
Impressions
The Peninsula, Beverly Hills
Fall 2015 Event
*70,000,000
Impressions
Dream Downtown, New York
Winter 2016 Holiday Party
#90sEdition
Presented by Cottenelle
*84,679,977
Impressions
Palihouse, West Hollywood
FabFitFunTV Launch
*47,823,522
impressions
E.P. & L.P., West Hollywood
Spring 2017 Event
*54,000,000
Impressions
Malibu Wines, Malibu

41. FabFitFunbrandedinsert(frontandback)
brandedenvelopefeaturingbrandlogos
- FabFitFun provides a modern direct mail with an on -brand, contemporary look and feel
- The mailer is curated with only a few select spots available
- Elevated brands with similar goals

44. curated box | bringing the call to action to life through products

45. press release | a ton of buzz generated
http://www.businesswire.com/news/home/20170825005715/en/FabFitFun-Teams-MTV-Co-Branded-Curated-Box-%E2%80%9C2017

47. Focus Groups 2.0
& Data Science
NG Retail Summit

48. FABFITFUN CHOICE/CUSTOMIZATION
CHOICE
Choice AssignmentData Warehouse© 2017 FabFitFun Looker

49. SMART CHOICE ASSIGNMENT
CHOICE
© 2017 FabFitFun Looker Choice AssignmentData Warehouse
...for Summer 2017, we dynamically
assigned choices to a group of customers
and then compare their satisfaction and
retention rates to a group with randomly
selected choices

50. STEP 1 : Train/Test Machine Learning Model
CHOICE
© 2017 FabFitFun Looker Choice AssignmentData Warehouse
1. Pull survey/demographic data from
users who participated in choice
2. Divide this group into training (80%)
and test (20%) groups
3. Using the training group, develop a
model that uses user data to predict
which choice they are most likely to
make
4. Test model on Test group
a. Choice 1 Accuracy : 60% (vs. 33%)
b. Choice 2 Accuracy : 75% (vs. 50%)

51. STEP 2 : A/B Test
CHOICE
© 2017 FabFitFun Looker Choice AssignmentData Warehouse
1. We selected 40k people to participate in
this test
a. 10k : We pick Choice 1 Only
b. 10k : We pick Choice 2 Only
c. 10k : We pick both choices
d. 10k : We randomly pick both
2. Compare customer survey results and
retention rates among the 4 different
groups to see if there is any significant
change
20.1% Improvement
in rating score

52. What differentiates us:
Unlike traditional CPG and retail companies, we own our
customers data and we know all the relevant differentiators such
as name, email address, physical address, age, etc. as well as
beauty, fashion, and lifestyle preferences for all our members as
evidenced by our onboarding profile which has 90%+ completion
rates. We partner with Experian, Axciom, and Mastercard (not
Equifax)

53. We attract a highly desirable customer base:
• Millennial and Gen X female e-Commerce shopper who WANTS to
engage with brands and discover new products
• 80% of our members are new to brands in the box and 70% say they
would purchase a brand again after receiving it in their box
• Our members range across all different age groups, income brackets, life
stages, equally distributed across the US
• Everything you would look for in a best-in-class consumer testing panel :)

54. Leveraging member data to make decisions:
• We tap into our member base to get early signs on which
products they like, which brands resonate with them, which
influencers will appeal to them
• Because we already know so much about our members we’re
able to see which products and brands resonate or perform with
different segments of our audience (e.g. fitness lovers 25-34 vs.
fashion lovers 45+, etc.)

55. Leveraging member data to fuel AI/machine learning:

56. Everyone likes mascara
20 40

57. Next Generation Data Analytics. We use this data to inform what kind of
products we should source or build. How could this information help
you?
Older you get, the more
you dislike highlighter
Lipgloss: Teens and
Older Moms
20 40
20 40

58. Questions / Comments?
• We also have 50 free 1st box coupons!
• Just find me.
• Cancellation is easy. Just do it online.