Case Study
How do We Reach 40% Repeat Purchase Rate
Only Organic
https://www.onlyorganic.co.nz/
– Case Description
Founded in New Zealand, Only Organic has been providing premium certified organic food for babies and toddlers since the early 90’s. As the NO.1 baby organic food provider in Australia and New Zealand, they are committed to providing the best quality food for the little ones.
Only Organic partnered with eSharp to grow their business in China.
Evecutive Summary
The baby food market is very competitive in China, which is dominated by a few large brands. We used baby pureed meat as the breakthrough product and partnered with Tmall to distribute paid samples to the target audience. The brand awareness was quickly increased as a result. A fully bespoke loyalty program was designed to deliver an enhanced customer experience and successfully double the repurchase rate.
Challenges
The baby fruit puree market has been dominated by a few large sellers in China. It is difficult for new brands to enter the market and directly compete against established brands.
At the same time, although the baby snacks market is large in China, these products usually have a very short shelf life. Counting in the international delivery time, there is only a short period of time before the products expire. For the brands that have not yet established brand awareness, the inventory turnover is usually low. Short shelf life makes it challenging for baby snacks products to win the Chinese market.
Process
Created a winning market entry strategy
After comprehensive market research, we decided to promote baby pureed meats as the flagship products. Baby pureed meat is not as competitive as fruit puree. It should prominently bear the brand name in the launch campaign.
The strategy proves to work really well. We achieved a 60% monthly growth in the first 3 months, and the meat puree contributed more than 60% of the total revenue.
Designed the Fully Bespoke Loyalty Program
To increase the customer retention rate and offer a more personal customer experience, we’ve designed a fully bespoke loyalty program. The 18th of every month is set to be the members’ day. The results of the program are tangible:
1. The average repurchase rate increased from 20% to 40%;
2. The number of monthly new members vs. the number of monthly new customers increased by 500%.
3. More than 60% are high-quality members, which is way above the industrial average.
4. The average transaction value per member is 200% higher than the average transaction value per customer.
Distributed Paid Samples to Continuously Grow the Customers Base
In order to deliver an enhanced customer experience and increase brand awareness, we have partnered with Tmall to distribute the paid samples to target users. The strategy proves to work really well:
1. 3,500,000 impressions were reached and 1,000 samples were sold out within 2 days.
2. More than 1% of the users who participated in the trial returned to purchase the products within 7 days.
Final Result
Achieved a 60% monthly growth by creating a winning market entry strategy.
Achieved a 40% repurchase rate by designing the fully bespoke loyalty program.
Continuously grow the customers base by working with Tmall to distribute the paid samples.