Rashida
2012.
The year the world was supposed to end, the iPhone 5 launched, and Dollar Shave Club came out with their viral launch video.
Dollar Shave Club started in 2012 with a goal to disrupt the razor market with an affordable subscription model. Their launch video “Our Blades are F***ing Great” now has over 27,158,120 views, and in 2017 the company was sold for $1 billion.
So…it sounds like they did achieve their goal. But how?
The Iconic Video (and Model)
Creating a witty marketing video was not a brand new idea, but it was one the Dollar Shave Club did exceptionally well. The brand markets to men and took a unique approach compared to competitors. Typically, those marketing to men either took a luxury approach or a very dumbed down dopey vibe. Instead, the Dollar Shave Club created an authentic, relatable video that was funny without trying too hard. They told you everything you needed to know about the products and services in a way that was just enough offbeat.
There’s no doubt that their video helped, as it triggered 12,000 signups in the first two days, but they had more than a great marketing video. They also had high-quality products and an exceptional model. In a time where we can buy nearly anything online and have it on our doorstep by the next day, a razor subscription may not seem all that iconic, but remember they launched in 2012.
Great Value
Dollar Shave Club offered a real solution for consumers. Typical razors and shaving products are too expensive and annoying to shop for. With DSC, you get a high-quality alternative automatically shipped to your doorstep for as little as $3.00 a month. Cancel or change frequency at any time. The solution is simple but highly attractive for shavers around the country. DSC didn’t invent the razor, but they did disrupt the industry with a simpler, more affordable way to get one.
The CLUB
Another area DSC excelled is in customer experience. You enter the “club” after all. The brand had a clear personality that was simple, sleek, and relatable. Along with your razors, you get to be part of the “in.” Upon signing up, you get a confirmation email with more information on how to get the most out of the community. Your box includes playful welcome notes, information on upgrades, sometimes free samples, and the DSC monthly lifestyle newsletter, The Bathroom Minutes. DSC provides an experience that customers love.
How Dollar Shave Club Gets New Customers
To gain new customers, DSC focused on the channels that made sense: social media and referrals. The brand reposts UGC of monthly boxes and sometimes even sends free t-shirts to members that post. This encourages people to post and interact with the brand on social media.
DSC focuses heavily on the customer lifetime value, which leads to happy customers that are excited about sharing their experiences with friends. They pour many resources into building on existing relationships so they can keep customers coming back and delighted. DSC founder stated, “50,000 people a month refer a friend to the club.” WOW.
What About Women’s Razors?
DSC is geared towards men with its color waves, brand voice, and marketing as a whole. However, they describe their products as unisex and have posted a “his and hers” social media post that cleverly showed the exact same product under each label. They’ve also remarked that a razor doesn’t need to be pink for women to use it. While DSC is certainly targeting men, they do not want to exclude women.
Many women appreciate this approach and have tried the brand, but now they have some competition. Billie was launched in 2017 as a brand to offer a similar premise but marketed toward women. According to Billie co-founder Georgina Gooley, “We looked at the shaving categories and we saw a lot of companies focused on providing a better shaving experience for men. Women have been kind of an afterthought in this category.” Billie does something that DSC does not, they create and market razors that are pretty colors and come with features many women like, but without the notorious “pink tax.”
Yet, DSC still generates $247.5M more revenue than Billie each year, most likely because they appeal to men without excluding women. As DSC feels the pressure from Billie and other similar services geared towards women, they have responded with some marketing that includes women. 9 months ago, they released “our razors are borrowed for a reason.” While they do show a woman using the razor, it’s under the premise that it’s meant for a male but being “borrowed.”
Overall DSC is an example of a clever brand that disrupted the market by:
- Providing a solution
- Creating an experience
- Marketing in a funny, relatable way
While many of their strategies may seem commonplace now, they were one of the first of their kind to offer the model they did and do it well.
