How Living Proof is Conquering the Ultra-Competitive Beauty Industry
Traditional beauty products players and direct-to-consumer brands are in a constant and fierce battle for market share. Instagrammers, YouTube sensations and social media stars are winning the daily attention of consumers — driving purchase patterns towards the latest trendsetters.
Living Proof takes an alternative approach.
The company is led by biotech scientists pioneering a line of breakthrough, silicone-free products — all available via subscription. It’s the brand’s way of creating its own direct-to-consumer channel after years of selling only in stores like Sephora and Ulta Beauty.
To engage more shoppers to their site, Living Proof offers an in-depth haircare quiz and curates products for each specific consumer. After consumers find products that work for their hair type and texture, they’re enticed to sign up for subscriptions on product detail pages and in shopping carts so they never run out of the products they love.
By the Numbers
+116% in subscriber base year over year
+144% in recurring revenue
The company has leaned on Ordergroove’s data and analytics to dive into Living Proof’s metrics to see where buyers typically dropped out of subscription programs. Ordergroove found that it takes about 4-5 usage cycles before consumers were ready to commit long-term to products they felt were essential — and recommended that Living Proof make fourth orders free. They promoted the incentive across email campaigns, targeted social media ads, influencers, and podcast ads, which also increased subscriber enrollment rates.
Subscriptions have thus helped their DTC sales become a major growth driver for the company, seeing Gross Merchandise Volume (GMV) climb even higher than the previous year’s Black Friday levels. Average Order Value (AOV) has increased 24% with the subscriber cohort — proving that when consumers subscribe, they are buying more too.
Living Proof is also experimenting with Ordergroove’s Instant Upsell, allowing customers to easily add new products into their upcoming subscription orders. In just the first few months of implementation, it’s seen average value increases of 99%
Inside Living Proof’s Commerce Stack:
“We give customers a prescription for products designed specifically for their hair type. That builds equity, trust, and makes signing up for a subscription a no-brainer.”
-John Winer, Global Head Of eCommerce & Media at Living Proof.