An amazing tactic to reduce CAC selling cosmetics
April 19 2023
DTC brand Recode has found an innovative way to acquire customers: free make up classes at 5 star hotels with lunch and a 19 USD goodie bag of cosmetics. This bridges the gap between customers' wants & needs, leading to a profitable
How does make up classes at a 5 star hotel with lunch lead to selling cosmetics in a highly competitive market ? Read on.
The key to profitable growth for a DTC brand is to find cost effective ways to acquire customers, that is reduce Customer Acquisition Costs. At Konigle we are big fans of brands that find innovative ways to lower customer acquisition costs.
Recode (shop.recodestudios.com), a DTC cosmetics brand from India co-founded by Dheeraj Bansal & Rahul Sachdeva , doing almost 5 million USD in yearly revenue has found an outstanding low cost customer acquisition tactic.
Recode conducts make up classes from make up artists at 5 star hotels and offers lunch and cosmetics worth 1500 rupees (19 USD) in small town India. During these make up classes, young women are taught how to use various Recode cosmetic products to perform different kinds of make up. Recode also offers the participants a goodie bag with cosmetics worth 19 USD. They train on an average 1000 young women a month.
This is a classic implementation of using the profitable niche marketing enabled by deep empathy towards their customers by the founders of Recode. This empathy bridges the gap between the wants and needs of their customers into a profitable go to market strategy. The offer to young women is pay 19 USD to learn how to do make up at a 5 star hotel with food and go home with 19 USD worth of cosmetics.
Absolutely brilliant.