A Beauty Box Company Boosts Retention by 20% with Hugo

The Client

A rapidly expanding beauty subscription service is transforming the cosmetics industry by delivering personalized, curated beauty products to thousands of subscribers each month, making discovering new beauty essentials easier and more exciting.

The Challenge: Enhancing Customer Experience and Retention

As the client’s business scaled, they encountered increasing difficulties in meeting growing customer expectations while maintaining retention rates. To address these issues, the client partnered with Hugo to tackle the following challenges:

1. High Churn Rates Due to Limited Subscription Flexibility: Customers struggled to modify subscriptions,  such as skipping boxes or adjusting plans, leading to higher cancellation rates.
2. Unmet Product Preferences: Despite the demand for more personalized items, customers frequently received products that didn’t match their preferences, which led to increased complaints and lower retention rates.
3. Inefficient Influencer Marketing: The client faced the challenge of an unstructured influencer marketing program, resulting in inconsistent brand messaging and underperforming campaigns.

The Solution

Hugo implemented a comprehensive strategy leveraging industry expertise to address each challenge and enhance the overall customer experience.

Optimizing Efficiency in Flexible Subscription Management

• Hugo addressed this by deploying a team of 100% dedicated support specialists with specialized knowledge of beauty trends (the team included make-up artists, skincare experts, and several dermatologists). They developed clear guidelines for handling subscription changes, such as skipping, pausing, or modifying plans.
• Hugo enhanced the self-service portal with more comprehensive articles and FAQs, enabling customers to manage their subscriptions independently and improving flexibility and convenience. Automated reminders before renewals or deliveries were also set up, allowing timely adjustments.
• The team made proactive courtesy calls to check customer satisfaction and offer subscription changes when needed, further enhancing retention. Feedback from these interactions was used to continually refine the process and ensure customer satisfaction.

Improving Product Preference Management

• Hugo first developed a comprehensive system for capturing and managing customer preferences. Based on customer feedback, a form was created, allowing customers to specify their preferences and dislikes, which was then integrated into the client’s CRM system.
• The team utilized this form during periodic check-ins and routine interactions to ensure preferences were accurately recorded and updated. After each delivery, feedback on the received products was collected to refine customer profiles further and enhance future product selections.
• The system was also modified, allowing agents to flag products customers no longer wanted to receive, making this information readily accessible for future interactions.
• Additionally, before each shipment, agents contacted customers to confirm the contents of their upcoming box, offering alternatives if needed to ensure satisfaction.

Enhancing Influencer Marketing Efficiency

To tackle inefficiencies in influencer marketing:

• Hugo created a dedicated team to identify and research potential influencers, ensuring they align with the brand’s values and goals.
• A checklist was created to evaluate influencers based on brand fit, audience demographics, and engagement, ensuring that selecting the most suitable partners was an effective and efficient process.
• The team created a database to track key metrics like engagement, audience growth, and conversions for each influencer campaign, with real-time updates from team members.
• Hugo also set up dedicated channels on Instagram, Twitter, and live chat for influencer inquiries, staffed by agents well-versed in brand guidelines and campaign details to ensure quick, informed responses.

The Outcome

By addressing key challenges with targeted solutions, Hugo  achieved substantial improvements:

• 22% reduction in cancellation rates within six months due to improved subscription flexibility and support.
• 12% increase in customer retention and a 25% boost in CSAT scores.
• Vetted 500+ influencer applications in one month, enhancing brand visibility and engagement.
• 33% faster response times for subscription changes.
• 10% increase in customer reactivations from outbound SMS campaigns and courtesy calls.

Maintaining a Strong Client Collaboration

Hugo’s partnership with the client has been defined by consistent communication and collaboration. As the Head of Operations noted, “Hugo’s team feels like an extension of ours. They understand our brand and customers so well that working with them is seamless. From improving customer interactions to refining our influencer program, they consistently go above and beyond.“