This afternoon I got off a call with one of the largest IP license holder in Asia for a collaboration on an upcoming new product category we’re launching at doe. It’s a brand defining moment for us. For a tiny brand that we’ve built with $500 to collaborating with an IP with a reach of 600 million people worldwide, it was a dream come true. I can’t speak on the specifics on it yet, but you guys will know it here before I post it anywhere else :)
While I was figuring out whether this new product category we’re releasing is actually worth it, I did something simple that I implore everyone to do before they launch a new category – survey your customers.
I sent out a 5 question survey with some simple logic flow. I asked them questions like – have you worn lashes before, and have you used product X before, if yes, what brand do you use and what do you like about it, if no, what is your hesitation? I sent out this survey to our customers on social and collected a few hundred responses – enough to get a statistical significance for my next experiment.
Next, I ran a mathematical model to figure out what is the LTV lift if the number of customers who said they’d try the product from us actually buys, and replenishes with additional orders at a conservative rate. This model concluded that we’d have a 24% lift in LTV if we introduced the new products. Of course, it’s not going to be perfect, but it’s enough assurance that it’s worthwhile to pursue the new product category.
I imagine something similar went through Lululemon’s expansion plan (of course with much more money and data behind it). Last week, they announced
they’re releasing a footwear line for women to compete against the likes of Adidas, Nike, and Under Armor. It makes perfect sense for a brand like Lululemon, who has done incredibly well as a lifestyle brand to introduce footwear and complete the outfit. They know how many of their customers wear athletic sneakers, and how many complaint that they’re not well made for women. It’s quite literally in their DNA to innovate athleisure, so it shouldn’t have come to a surprise to anyone.
Solving the right problem for the right people
I just released my seventh podcast episode on my shower Building Blocks! It is a founder to founder conversation with my good friend Ben Jabbawy where we jammed out on early mistakes that he made at his company, including trying to please everyone instead of picking a specific niche. We also talked about how your 1 and 2 star reviews are actually the most important people you need to talk to – after all, they had so much hope for your brand and they were ultimately let down, you should prove yourself even more to them.
It’s out now on my site and on all podcast platforms. Check it out here
Hope you guys are having a wonderful rest of the week! I’ll be in Vegas for Shoptalk in a couple of days. If you’re gonna be there, ping me!