![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
<\/a><\/p>\n<\/p>\n
This month, the hair wellness brand started selling in Sephora. It\u2019s one of the first big wholesale relationships Nutrafol has made. Though it\u2019s been around since 2014, Nutrafol \u2014 which sells supplements to help with hair loss and other health issues like menopause \u2014 has sold predominately on its own site, as well as Amazon and in certain physician offices. This has remained the case even after it got sold to Unilever last year.<\/p>\n
According to Giorgos Tsetis, co-founder and CEO of Nutrafol, \u201cthe Sephora partnership is really serving as credibility, but also just brand awareness overall.\u201d That is, it gets the brand\u2019s name in front of more people than it ever could before.<\/p>\n
Tsetis joined the Modern Retail Podcast this week and spoke about the company\u2019s evolution. Nutrafol started as a laser-focused wellness startup. It had two formulations to help both men and women with hair loss. A few years ago, it expanded to help with more ailments but has aimed to stay true to its promise of providing researched and lab-tested wellness products.<\/p>\n
\u201cThere\u2019s skepticism with supplementation in general,\u201d he said. \u201cAnd that\u2019s for the right reason because there are a lot of companies that are manufacturing supplements and making claims that they cannot substantiate.\u201d But, he said, Nutrafol has been focused on educating its customers to explain how it works and what exactly it does.<\/p>\n
That\u2019s easier to do on its own website, but now the company is trying to tell its story to more people by expanding retail channels. But not every channel will have the same expectations as the others. For example, about 85% of the customers on Nutrafol\u2019s website are subscribers. That\u2019s not the same with Amazon customers. \u201cAs we scale, understanding the ratio between these channels is going to be very important,\u201d said Tsetis.<\/p>\n
For now, the focus is on figuring out how to make each channel work and growing Nutrafol\u2019s presence. While the company is dead set on making its Sephora partnership work, it may have some other announcements soon.<\/p>\n
\u201cWith the Unilever infrastructure and resources available to us, I think the most impactful move in the next few years is going to be about scaling globally,\u201d said Tsetis.<\/p>\n
Here are a few highlights from the conversation, which have been lightly edited for clarity.<\/p>\n
Why Nutrafol was so focused on DTC for so many years<\/strong> The metrics of success for different sales channels<\/strong> Diversification is key<\/strong>
\u201cWe were very DTC driven. The reason why that was always an important strategy for us wasn\u2019t necessarily because it was easier to scale \u2014 it was simply because it goes back to the ethos of our brand. We will do everything in our power to set people up for success, to have them succeed with their goals \u2014 in this case with their hair goals. So it\u2019s very important for us to be able to have all these touchpoints and make sure that we\u2019re there for them. We describe ourselves as a partner in progress for people. So in order for us to do that, you need these touchpoints. And you need to be able to interact with them if that\u2019s necessary. If people, for whatever reason, do not experience the results that they would like to achieve, we\u2019re there for them. This is not about selling products. This is about, again, setting people up for success.\u201d<\/p>\n
\u201cOn nutrafol.com our retention is incredibly strong. Our subscription models, they\u2019re incredibly strong, because it\u2019s also powered by a very compelling value proposition \u2014 which is we go beyond product; we\u2019ve got doctors on staff who are setting you up for success. And that approach is incredibly personalized. So that is by far the strongest on nutrafol.com. That\u2019s why our subscription ratio there is incredibly high; like 85% of the people that are checking out on nutrafol.com are subscribing, which is quite unheard of. On Amazon, it\u2019s a different behavior, because on Amazon it\u2019s also a different customer. People are typically buying other products at the same time, it\u2019s more of an on-the-fly type of purchase. So the Subscribe and Save ratio is way lower there, which is quite typical. But at the end of the day, we\u2019re looking at the business on this degree. And as long as our blended CAC and our blended LTV across all these channels are in a healthy place, we\u2019re doing a good job. As we scale, understanding the ratio between these channels is going to be very important.\u201d<\/p>\n
\u201cFrom a marketing perspective, there are a few things that not just we are doing but I think everyone should be doing. It\u2019s all about diversification and making sure that you\u2019re diversified from a marketing perspective. The more channels the better. It\u2019s too turbulent. And with some of these changes, you want to make sure that you can pivot as quickly and as fast as possible if you see inefficiencies. We\u2019re incredibly diversified. We\u2019re [on] over 30 channels from a marketing perspective \u2014 where we advertise. So we\u2019re able to pivot quickly. So if you\u2019re able to do that, and use data to power that, you\u2019re going to be in a much, much better place.\u201d<\/p>\n<\/div>\n