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Lessons from Tatcha, Unilever's $500M investment
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“Change before you have to.” - Jack Welch

In many ways, it’s now that time when marketers “have to” change….GDPR, iOS 14.5, cookies, blah blah. The strategies that worked a few years ago need to be updated.

These changes are opening up new opportunities now as well--9 interesting new trends impacting CPG and eCommerce brands summarized here by Exploding Topics.  

One change that you also expect yourself as a consumer: product personalization.

Based on Gartner research, 70% of top DTC subscription brands use quizzes to enable personalization, before or during the sign up process.

One of those brands: skincare brand Tatcha.

Founded in 2009, Tatcha is a luxury brand that incorporates Japanese self-care traditions with modern science. It has obviously found its niche, hitting $100M net sales 2019, and getting acquired by Unilever for nearly $500 million.

And like many skincare brands, Tatcha has a quiz at its core.
But Tatcha has a unique spin, in how it builds custom routines for shoppers.

Notes Tatcha CMO Adeline Leong: “There are a million skin quizzes out there, but fundamentally, we looked at what we had to solve for and what these other quizzes did not solve for...We had a lot of people who were loyal Tatcha clients and still  did not know what order they were supposed to use the 15 products they had from us or what to do in the morning and then at night. We had to figure out how we were fitting into her lifestyle and how much more we could engage with her.”

🔎 This is super interesting!

Tatcha is using their quiz to better understand customer habits, usage, and goals.

More specifically, Tatcha can identify who are the high LTV customers, based on their “beauty philosophy”:
And then some basics, like the customers skin type, goals, and existing Tatcha products they own:
Their Ritual Page is a slick interactive experience that is optimized for an easy purchase experience.

Between the morning and evening routine, I was recommended 15 products that totaled $1075.

After a short convulsion of sticker shock (clearly I’m not in their target demo), I can see the beauty of this Ritual Finder.

Here are just a few quick pointers of why it’s such a slick experience:
You can go directly to that page here.

The takeaways are applicable to any type of product:
  1. Use a quiz to learn how your product fits into your customer’s life.
  2. Optimize your recommendation for an easy add-to-cart
  3. Maximize Average Order Value by recommending as many relevant products as possible -- with compelling rationale

Tatcha showcases what’s possible with their routine.

Sam Hulick of UserOnboard visualizes this beautifully, how you ideally want to position your product:
He writes, “People don't buy products; they buy better versions of themselves. When you're trying to win customers, are you listing the attributes of the flower or describing how awesome it is to throw fireballs?”

Sell the benefits, not features.

The easiest way to figure out what benefits actually matter to your customers is to ask them directly!

Happy quizzing 😎

Gen







Gen Furukawa
Co-Founder, Prehook

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