Quote: Originally Posted by
Lulubelle107 /img/forum/go_quote.gif
Yes, I think it's a learning process for every company that gets into the subscription box arena. However, I'm also thinking it's fine for a company to tell customers "this service may not be for you". Especially high end brands that are focused on more niche markets. If the company has their own vision for what they want the service to be, that's valid, IMO. It would be best if they didn't make people pay upfront if they are going that route, however, so people can opt out when they see the subscription isn't for them. I'd be very surprised if the second year (if it happens) doesn't evolve to reflect lessons learned. I'm curious to see if those changes also mean a lower value product wise. I'm speculating that the honeymoon is over on both ends of the spectrum.
Another thing I've wondered about is if the second year would send out totally different products or if there would be duplicates? This is a single brand with limited products, so it would be hard to avoid sending out duplicates, especially if they stay with the concept of building a core collection. Maybe they'll just go with the kaleidoscope subscriptions instead. Okay, </speculation>.
Quote: Originally Posted by
mishmish /img/forum/go_quote.gif
I saw an interesting article recently featuring the MSA blog, and I thought this particular line was on point for subscription boxes:
"For retailers, monthly boxes are like offering shoppers a plate of appetizers: Sample what you like, come back for more – and if you don’t like something, give it to your friends"
This in no way is meant to devalue anyone's feeling on here about LMdB in particular, but perhaps to offer another perspective on boxes in general and our expectations. True, there needs to be level setting upfront if there are colors/shades, etc. Perhaps it wasn't their intention a year ago to send items that would be suitable by profile, but perhaps it evolved as they would like to get more product out. It is a relatively new company. I am guessing they would adjust that this time around (if they even offer the program again after this year's experience). I know that I have gotten colors in other boxes that were absolutely not for me - but I gave them to friends. But I do not have this subscription so cannot speak to it specifically. I think with the price point being so high, it touches people on a different level. I like the post above that broke this one out into $20+/month.
Anyways, thought this was an interesting article.
Source:
http://www.newsobserver.com/2014/04/08/3768430/subscription-services-grow-in.html
Read more here:
http://www.newsobserver.com/2014/04/08/3768430/subscription-services-grow-in.html#storylink=cpy
Hopefully, the trade boards will help in matching people's colors? Maybe they will establish more norms in their customer service responses so they don't send wording that would be hurtful to the customer and the experience. I think they are learning and growing....
I really enjoyed both of your posts. Mishmish, I hope that you subscribe to VIP if they offer it again. Love your perspective! Wish you were getting the product.
/emoticons/
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~~ Here are just a few of the questions that I consider when thinking about the company's side of the VIP subscription box equation....
1. of the approximately 2k who signed up for the beauty vault program - how many subscribers have purchased other products from the brand during the past 9 months?
2. of those people, how many purchased the products at full price versus at Nordstrom Rack etc at a substantial discount?
3. how many of the VIP subscribers gave away product to friends to try or even talked to friends and family members about the products that they received? I need to reach more than just the 2k to make this a decent marketing strategy...
Anyway, after thinking about this program from a purely business perspective with no personal bias considered, I can't see how VIP was the best use of LMdB's marketing dollars.
As Lulubelle107 stated so well, this is a niche market product line.... with the little marketing that this company does, LMdB has to reach a demographic with the money available to purchase their product, and then they have to get those few people who have the money and who will spend $75.00 on face powder (using this month's product as an example) to buy the products; AND they have to make this happen while going up against competitors who are advertising the crap out of their products in every women's magazine on the newsstand.
Call me crazy, but I doubt that most women who have that type of bank AND will drop that type of cash on face powder make up the majority of women who are subscribing to this service. I believe that most of the subscribers are like me... women who loved the idea of getting great makeup for a great price. I don't think LMdB's core customer is worried about price, much less $29 a month. In my ten years of divorcing rich women in Dallas, most tip the valet in front of Neiman Marcus that much on a monthly basis so that they don't have to park their own car in downtown Dallas to go in and buy LMdB products. They wouldn't think twice about giving a product away to a friend if it doesn't work for them. It's just a good excuse to go to Neimans and buy another product.
While I found the email that bellatrix42 shared to be rude and in poor judgment, I also read it as frustration being expressed that the program hadn't worked out as the company had hoped.
The comment about generosity on their part was the one that I found particularly telling. I had assumed from the beginning that we would get lip products, mascara, eyeliner, single eyeshadows, etc., with product that they were discontinuing or updating formulas to fill in our boxes such as Starlooks sends in their birthday gifts. Never in a million years did I think that they would send out hundreds of dollars in product over the last nine months for $350.00.
When I consider the costs to the company for executing the program, I cannot see how they are making a dime off this.... starting up the program, signing up the subscribers, time by employees spent on personal notes to everyone, time spent by employees for packaging, money spent on packaging and shipping costs, repeat shipping costs to subscribers who had an issue with their products, time spent by employees dealing with those issues, cost of the development of the quality products that we have received plus cost to make the products, and finally taxes paid on the income from the subscribers and all the employment taxes paid to service the subscriber. I am sure that there are plenty of other costs that I haven't taken the time to consider.
Furthermore, for every product that they send me, this is another LMdB product that I don't need! It will take me forever to use the powder they sent, and the concealer, and the makeup remover, so on and so forth.
If I were the marketing people at LMdB, I would spend my future marketing dollars sending product to more beauty bloggers to reach their readers and who hopefully show my products in use (very important step that they are missing with most of us - Lulubelle107 and OiiO excluded) and who always need more product to review or putting my products in Birchbox so 200K can hope to be one of the lucky few each month who receive one, unlike VIP subscribers who have already been spoiled by my amazing products. I just don't see the benefit to sending products to a select few and hoping that they will spread the word or buy more product. I don't see why subscribers would want to pay full price for my products when they are getting a great deal from my subscription service.
All that said, I will be thrilled if they continue the VIP program, and I will sign up in a heartbeat if it's offered to me. I don't care if I get repeats. I feel like I got my money's worth a few months into the program. I did sign up for the first kaleidoscope quarter. Got an email for the second round, but not going there until I see what comes this month. If it fills up, it fills up. I am guessing that LMdB phases out the VIP program and sticks to the quarterly kaleidoscope program. I hope I'm wrong.
Sorry for the lengthy post.
