Making parenthood easier with diapers on subscription
In partnership with HEMA’s Innovation Lab, we are exploring product-to-subscription models to reduce churn and improve customer experience. One of our initiatives: ‘De schone billen box’ (or ‘Babybox’) has just launched as HEMA’s first subscription business model.
The pilot is live! And we’re very proud of it. Check out https://babybox.hema.nl/ and order a babybox yourself.
Products-to-subscription can widen impact as well as improve customer churn. Young mums and dads are an ideal target group for this. Along with the needs of their baby, they can rediscover the full range of HEMA’s products. After extensive user research and translating the insights into a workable strategy, two concepts were put in front of two chosen target groups. Top choice progressed to simulated experiments in the market.
How can we help busy young parents with new products and services?
Which problem did we focus on?
‘New parents’ is still a very broad target group, so we distinguish two groups: pregnant women and young parents. Pregnant women are often very uncertain about what they will need once the baby arrives, while young parents who already have two or more children face a hectic and busy prospect, balancing work, kids and a social life.
What solutions did we think of?
We created two concepts with a new business model for HEMA: subscriptions. The first was a rental model for expensive baby products that only get used for a limited time. The second concept delivered high frequency baby hygiene products, to your door. Both concepts were tested through a panel discussion. The second concept showed most promise: The Schone Billen Box [The Clean Bottom Box].
How did the market respond to our solution?
In partnership with HEMA, we developed the concept into a landing page to test the proposition in the market for purchase intent. Here, we explained the proposition, chose USPs and a pricing strategy which we adapted for three channels: website, email and SEA. Visitors that subscribed for a pilot received a phone call to discuss their purchase intent.
The results were nothing short of spectacular. No sooner had we started the desirability test, or users were already asking where and when they could join this new service. Their enthusiasm was also visible during the simulation phase: 15.4% of all visitors are interested in the service (retail and e-commerce average notoriously low)!
Jan-Willem van Beek