EP091 - Boxed Wholesale Head of Reengagement Nitasha Mehta
An interview with Nitasha Mehta, Head of Reengagement and Boxed Wholesale. Boxed is bringing the wholesale club experience to e-commerce, is based out of Edison, NJ and has raised $132m in capital.
In this episode we discuss Amazon's Whole Foods acquisition, disruption of CPG, private label, mobile, customer acquisition tactics, and customer retention tactics.
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Episode 91 of the Jason & Scot show was recorded on Wednesday June 29, 2017.
Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at Razorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.
New beta feature - Google Automated Transcription of the show:
Jason: [0:25] Welcome to the Jason and Scott show this is episode 91 being recorded on Wednesday June 28th 2017 I'm your host Jason retailgeek Goldberg and as usual I'm here with your Coho Scot Wingo.
Scot And Nitasha: [0:40] See Jason and welcome back Jason Scott show listeners in this week show we have a very timely guest, nitasha Mehta is head of reengagement at boxed she previously held positions at Samsung in Amazon box is bringing the Wholesale Club experienced e-commerce based out of Edison New Jersey and is raised over $139 in Venture Capital welcome nitasha. Thank you.
Jason: [1:06] Soonest Natasha we always like to kick out these interviews by having our guest share a little bit about their background and and how they came into their current roles can you talk to us a little bit about how you got here.
Scot And Nitasha: [1:20] Sure, so I leave here and marketing at Fox I've been off for 2 years now which is been an amazing ride it's been really great to see Nvidia, be part of that tremendous growth that we've seen over the past two years.
[1:45] Where in New Jersey part of, companies on Amazon on in Seattle on the content marketing team for Mobile Electronics, both been in the e-commerce and retail space for quite some time it seemed like a natural extension to. I joined by a couple years ago and really excited to be part of the team.
Jason: [2:14] Pretty cool and you have sort of the unique title how did you arrive at that title.
Scot And Nitasha: [2:21] Sure thought of Engagement really has a few different facets, my main focus is really customer retention and so hyper focus on customer really trying to understand how to find the light messages and promotion, for a customer at the right time until about one hundred percent of my focus, an email and push notifications are some of the channels that I meant along with programmatic direct mail and polka Matic display. I'm so if a pre-owned Compass Bohemian title for the customer experience.
Jason: [3:04] Very cool and I always is it I was like it when you invent your own titles so then you can be the the the absolute industry Guru of that title.
Scot And Nitasha: [3:16] Absolutely tell us a little bit more about what you did Amazon, sure so I managed a couple of our Mobile Electronics, Sanders and campaigns and so worked really closely with apple and Nike on MP3 players and GPS watches as well as Garmin and TomTom not going, population in 2010 Pacific or GPS devices, and though many of our on-site popcorn campaigns on the pop form as well as email probably manage over 100, weekly campaigns across multiple different brands and inventors Regal how. What do you think about Nike selling on Amazon since you can work for them on the device side maybe you have a point of view on on shoes. Yes but we home yet actually I'm actually not sure if if not user icon shoes yet but we were the first category with an Amazon to bring them on Direct, we had a relationship with with, GPS devices and so when they launched their campaign with TomTom we were able to bring them on which was really exciting at that point but to bring on the he has a venue one of the first category to do so.
[4:46] And then how about a Samsung what did you do over there. I was on the Punic marketing team for tablet and so it's kind of on the opposite end of the spectrum working with Amazon as one of our customers and so Amazon was one of our largest suppliers, of iron tablets on other work today cuz they would Best Buy and Walmart on the channel marketing side. Managed promotions for tablets and this was also in 2012 when tablets, they still are but when tablets are really On The Rise and was a really exciting place to be at that time. Then see if it boxed for two years imagine you seen some pretty crazy growth were you like me were you in the first handful of employees. Boxed is only a couple years old right. That were about three years old I'm almost four actually and I started when we were almost. I would say and since then we've. More than quadrupled so tremendous girls were already running out of space at our third office and so it's been a really exciting ride to you there from you know the very early days. Free Colts and then does your role change or you've held the same role and just kind of taking over more and more pieces. Yeah I started in this little a lot of what I've done in the past really like me to.
[6:23] Focus on being gagement in particular and so if I go so slow I've been taking on more over the past couple years and I also have a, rebagg ball and thunder marketing for work very closely with many of our Brands and suppliers that box as well. So so imagine boxed has like a typical retail that category teams and all that kind of stuff and even relations you guys have a fun center or is that, you don't do any of your phone that it's kind of 3 p.m. or something. No we do have our own system in it and you have 4 at Sears across the country and so we recently just launched our fourth in Dallas, a few months ago International in the contiguous 48 states. Are these kind of Amazon 1.2 million square feet kind of Caesar these are iMagic pile of it smaller a little bit smaller that we're pretty close.
Jason: [7:29] Nice and for listeners that maybe aren't totally familiar with box but I what's the how do you describe the the value prop with the elevator.
Scot And Nitasha: [7:38] Sure, and once on the last where the online mobile version of your wholesale Shopping Club but we don't have any membership fees and we have free shipping so anything that you normally go to the Wholesale Club on, and spend your entire Saturday shopping we will deliver on average in two days you and all your books eyes. As favorite.
Jason: [8:07] Don't you imagine the answers both but do you feel like are you primarily trying to take visits away from, Costco and Sam's Club so you're getting people to recreate that brick-and-mortar experience online or are you you trying to take visits away from Amazon or maybe Prime Pantry.
Scot And Nitasha: [8:26] I think it's Holloway coexist with all four, Costco fans and DJ's they don't have a strong online presence if they're putting a lot of focus on and so we also are targeting Millennials that may not necessarily, not on the ferry started shopping at his Wholesale Club yet and so. City dwellers and Millennial moms for example are really a huge Target of ours and and. A new that we can coexist with all four of these other retailers.
Jason: [9:06] Got you in what are the things that somewhat unique about the club stores that some listeners may be very familiar with and others might not is they tend to have different product configurations then art. Typically sold.
[9:21] At what grocery stores or or even that are sold in Amazon Pantry so you know you might have A4 pack or an 8-pack, on a grocery store shelf and you might have 104 count in the club club store so we tend to call those Club packs is boxed primarily offering Club packs is that, are you getting the same configurations or something in between what's the.
Scot And Nitasha: [9:44] Yeah so we primarily focus on Club packs or the Bahamas you and so we work very closely with our suppliers on, customized packaging Pacific to eat, but still you know what's in the Fun Pack.
Jason: [10:01] Got you and is it has it been difficult like I I know traditionally in the old days Costco has a lot of Leverage I mean you know with a very small store account there the second largest retailer in the US.
[10:14] I feel like they used to have these. These kind of draconian vendor agreements where they were the only ones that were allowed to carry a particular configuration so they had exclusivity on this card packs art are you finding it that's less true today or are you you getting.
[10:29] That's like like a slightly different version of Quebec or how is that working are you.
Scot And Nitasha: [10:33] Yes yes, spell largely true what we do is negotiate a slightly different variation or size count for the econ version and so we wouldn't necessarily get a soda. cut exact size but we would have this form or variation different packaging specific for us.
Jason: [10:57] Got it in in in general is are you finding like is a big part of your value proposition. The value of the products that because they're buying, Club PacSun you're encouraging them to get a bigger cart that you're able to offer really aggressive pricing or is it the convenience and not having a slap all that big stuff from the store and to the car and all those sorts of things like what what what are the primary things that you think are really driving consumers to use you.
Scot And Nitasha: [11:26] I said was definitely convenient but I would say that's probably one of our, biggest differentiator is and trampolines that are not having for Lego these bolt size 3 six packs of paper towels home especially for myself living in your, I need to go around the corner to CVS every other day for items but I can just buy one time and had to deliver and open Venus was definitely one of our biggest value Problem by overall, we don't strive to be the cheapest prices online but the value of having the Club Vive, RX delivered to your door and not having to pay the annual membership fee is huge Michael. Imagine you being an ex Amazon person and you guys are in the kind of cpg category with a lot of your offerings what did you think about the whole Whole Foods Amazon acquisition any thoughts on. Hey I thought it was brilliant and it was 1030 now. Solution they haven't really nailed down the flash category I'm gone fast food. Growing but doesn't have the brand yet and so I think this really helps them and help them gain credibility within the fresh-faced and I'm usually beneficial cuz.
[13:00] Because Whole Foods generally have a ton of presence of any and digital and for listening they're really going to help each other and. Smart across-the-board.
[13:14] And then um the Amazon does have an offering it's it's left I found a lot of people don't know about it and it's kind of under serve but it's the Prime Pantry, and it seems like that kind of is there trying to solve, yeah kind of some more problem you guys are with a very different kind of a mechanism I've tried it before and it's like this weird gamification of fun the box and it's like hard to connect. So it's a lot of work it felt like to kind of like Phil the boxing and going to optimize it. You feel like you guys have a bit of a white space from Amazon that they haven't really solved the what you're doing or is there some overlap. Yeah it's a tough I think so I think Prime Pantry and doesn't it's like you mentioned has a brand awareness, have a very unique brand effect and the fact that we only focus on full and so that's her name differentiator from you, time pantries yet Enough full disclosure I'm a customer we will use it at my office so we have a startup and. Yeah it's the food is great for for that. My family is not quite big enough to eat it that much but booked through the guys have that it works great in an office of 20 people you know we get our and then ordering is is really nice to see you guys have done a good job of. Be able to reorder things.
Jason: [14:38] And for lizards that don't know Scot goes through a lot of snacks so that that's that's a meaningful.
Scot And Nitasha: [14:43] They were perfect for you, and B videos is the flying a huge focus of ours as well and so he's a pretty significant portion of our business that's dedicated to start up like yours.
Jason: [15:01] Nice I want to dive just a little bit more into how how you're interacting with Brands and how they view you the one thing on that last question I actually think you're.
[15:13] Prime Pantry is almost the opposite of you write like the pantry is really.
[15:19] A way for Amazon to sell the small packs and entice the customer to bundle enough small packs together that it's cost effective to ship them. And you're you're selling the big packs which are the things that Amazon normally is willing to sell as eaches even even on there.
[15:36] They're the normal website if you will but. Honesty Bee Gees I think one of the interesting things that happen is when when Amazon announced the Whole Foods deal all the immediate talk is how that affects retailers right and you know who which retailers are most likely to be disrupted by by this new Force but I feel like there's been this, the secondary realization, did it's really a big wake-up call for the cpgs that may not have had very much focus on digital right so your. Your Procter & Gamble are Unilever or you know Kindle car for those folks, you know less than 1% of grocery is digital you know you're overwhelming largest customers are predominantly brick-and-mortar and so you know while you're starting to deal with digital it's for a tiny part of your business and now suddenly. You have the threat that that I can a very significant player could be disrupting your category with digital and so I wonder, like do you see that that will you know potentially make some of your your brand Partners more digitally Savvy and maybe more open to, trying things digitally with with folks like yourselves like I could almost imagine that that's a favorable trend for you.
Scot And Nitasha: [16:54] Yeah absolutely and I think we've started to see that Trend over the past few years to the fact that many Brands now have a shopper marketing team but are largely focused on digital, I live in joy tea of my contacts that I have you, contact conversations with our phone that Shopper marketing team and their. Much savvy are there in they were you know. Four or five years ago and I'm so I already started to see that Trend shifts and I completely agree I think especially with this whole foods deal it will continue to grow in that direction and more.
Jason: [17:38] The absolutely, you don't want of the interesting things insert a traditional Shopper marketing there there's a lot of tactics in addition to getting the product on the shelf that are commonly used right like so there's lots of merchandising in Coop and Brands paying for. And positioning in sampling in and we see some of that, on on the Amazons in Walmart's of the world is that something that boxed is doing today in terms of like offering digital promotional opportunities for for brands or is that something you're you'll consider as you you advance.
Scot And Nitasha: [18:13] No it's actually something that we are already offering which we probably started about a year-and-a-half ago and so we probably, oh and enjoy these are real estate on both of our site as well as our ass. And we called many of the placement of virtual and caps and so no at a play on the freaking water and cat food but, definitely in English. And excitement and engagement over these placement over the past year as well which which continues with that trend of Brands moving becoming more more digitally body. Recool the one of the the trends at Costco I don't know about the other clubs but they have the Kirkland brand which is which is their private label and. And I don't know where it started but it's become quite popular and they sell Auntie mall and that's primarily what they sell is that private label. I think Amazon is actually sells Kirkland it's odd it's kind of taking a life of its own and it's one of the they sell more Kirkland online than Costco does. Los customer you guys I really like you guys have a similar offering called Prince and spring maybe tell us a little bit about the rationale of that and how is that going.
[19:33] So if the really started off with just paper towels and toilet paper so two in the fact that he's package good that everyone needs an Zen, there's huge opportunity there and really being into stop there and our category that's really dominated by another down even the Sherman and so we started that. A couple years ago and has expanded the printing spring assortment free significance and it's a huge Focus for the company the team has been. Growing pretty rapidly and now we offer everything from toilet paper to flushable wipes to hangers and most recently it was only just launched, coffee and so both ground and whole bean coffee all Source locally. And it's if it's not stopping there we're watching chemo and moving into the food and beverage States as well and so is definitely a huge Focus for us. And I know she have one of things we love in our office is K-Cup coffee and but it's quite expensive in and noticed your private label is almost like half price of, what other offerings are which is which is nice. And it and it tastes good, okay on the so Jason and mentioned you know the brands and in the things do they eat.
[21:09] How do you navigate having that private label when you're also trying to get the sharman's in the bounties on the side I met you the good news is you're not the first kind of. Company to do this so I guess it's pretty well-read and ground for him. Yeah I really just increases over all share with in that category we haven't seen any kind of libation going either way and so again you know I think there is. There are products that are recognizable that you would always want, I'm to partner with and and a sore on our site but if we can offer a different selection a different place with wood, in terms most likely Target a different type of customer your that's really are our strategy that.
Jason: [21:58] Got it so I love the fact that you're you're competing with traditional clubs. In the digital space because I fear going to talk about Costco in particular like they're very admirably retail or they do a lot right so I'm really not trying to pick on them but I freakin called them the biggest digital Luddite in the retail industry. I think it's very overt like I think they've just made a strategic decision. We don't want to be digital we don't want to give the customer any reason not to visit our stores and why lie.
[22:33] Can kind of understand that sentiment like ice you know I and I suspect most of our listeners on the digital podcast probably feel like that somewhat short-sighted but In fairness to them it hasn't really shown up on their balance statement yet so. But what's interesting there model is sell stuff at the lowest margin possible they're super aggressive on price and their primary profit driver is those Club memberships. You guys obviously aren't doing the membership and that's one of your value props is get those Club packs and get that convenience without the membership. Bed so I presume you have to make more money selling the goods and then you have this this really inconvenient cost that we all struggle within e-commerce which is shipping. So
[23:23] Like do you guys have any strategies for keeping the the shipping costs under control I mean I know it feels like that's a ever-increasing. Cause we talk a lot on the podcast about the fact that e-commerce is growing at like 20 to 30% and the shipping guys capacities growing it like 8% and so there a. They're constrained commodity and what they're doing is there charging more for their service as a result.
Scot And Nitasha: [23:48] What does, we offer free shipping on all orders over 49 so that definitely helps with the shipping fees and then on top of that the majority of our orders, the average order size is 9 - 10 items so we are stuck up service our customers are.
[24:19] Play higher than an Amazon sample or the typical or sides or just one or two products are order which does largely affect shipping but because that were able to eat shipping costs low.
Jason: [24:33] Gotcha and I guess one of the things that somewhat surprised me.
[24:40] Based on your category in the types of items that customers get from you I almost would have expected to see some sort of subscription service and I know Scott mentioned you have really convenient reorder service but if you guys ever you know.
[24:53] Like is that an over decision you made not to do some scription and says that something that could be in the roadmap what's the scoop on subscriptions.
Scot And Nitasha: [25:01] Potentially be on the road that is something that we have considered especially for certain items but. Customers into typically reorder like baby next absolute spend baby products for subscription type of service and so that only something like thinking about.
[25:21] I may be remembering this wrong but when boxed first launched my recollection is was kind of a mobile app only kind of a thing and then later the desktop was added and again maybe I misremember yet, but kind of curious about that mix of of mobile and desktop, again I kind of like the desktop version cuz usually I'm doing it when I'm at work and I can kind of like, see the product better in that kind of thing but any interesting insights you can share what you guys have learned there. Definitely the launch of the mobile app for mobile first and also. Attack company first and so the majority of our employees are actually on the tax team. The innovator and improving Dorothy experiences while I was excited. And so we launched shortly thereafter. The first years mobile is the majority of purchase it. And the letters how many of our customers prefer to shop through the source of the app the app is really is a convenient option I personally love using the app for me order items, simple to put process reorder and so I think, you're having both options really great for a different use cases.
[26:57] And then you know I mentioned earlier and you said this is kind of growing part but the kind of a b2c and B2B element. Did you guys start leaning into the B2B when you kind of saw how people were using things or or tussle bit more about that kind of how that came to be in in anything you can share on mix or anything would be interesting. Stressful that continue growing our business. Meet by the natural extension of epoxy started as a beauty popcorn but because you are stuck up service and deliverable and our own office manager or just the front, LIRR employees I really am from cartoons and truly, is our employees love the snacks in the Beverages and we need the paper towels in the toilet paper it just seemed like a natural extension and now that team has been curling pretty, pretty quickly as well for the past year the huge Focus for us this year and in 2018. Yeah I imagine that it's kind of where we also use you guys for a funeral off the office supplies again the kind of packaging is good as is that kind of where, those got out at imagine before you saw the business side there wasn't a lot of the office stuff. Right yet you continue to add a lot more selection within the office based off as we start to it as we continue to build out that part of our business.
Jason: [28:34] I love that strategy like the more Tech Guys you higher than more snacks yourself.
Scot And Nitasha: [28:39] Very true it's hard to keep snacks in stock at our office.
Jason: [28:51] Hopefully that permit person has a good promo code.
Scot And Nitasha: [28:54] Exactly.
Jason: [29:02] So going back to the very beginning of our conversation reengagement like one of the.
[29:09] The huge challenges for all online retailers in particular 84 PurePlay online retailers is, customer acquisition right and I think of sort of the big big player and in the space for the last couple years has been Jet and you know they famously spent, a fortune on each customer in terms of active acquisition cost what's your strategy around acquiring customers and driving that customer value are there any particular tactic sure, you're relying on and any that have been predicted successful.
Scot And Nitasha: [29:44] Sorry we pretty much, across the board in terms of acquisition and retention but specifically acquisition-related focus on TV we launched our first, ad campaign, the beginning of last year and then we launched another one towards the end of the year I'm working on the 3rd right now as well at Subway has been really. I'm really surprised MC Market and so really you know building on the Branded dolphin and having that constant exposure in key markets and then print has been used for us in terms of acquisition so, somewhere to check that is invested a time and direct mail and print we're also focusing quite a bit on that in terms of opposition.
Jason: [30:35] Done at night I can majun Subways particularly clever because you know one one large segment of Shoppers that have kind of excluded from the the brick-and-mortar club folks are our folks that don't use that car.
Scot And Nitasha: [30:49] Exactly.
Jason: [30:54] Yeah so it's interesting you just mentioned a lot of a sort of old-school old-world advertising techniques and I almost wonder in some ways. For Pure digital play like you know your tendon running a lot of companies that are predominantly doing digital marketing if you know some of the. The print stuff could potentially be less crowded these days and so the I don't know the signal-to-noise ratio for that kind of campaign could almost be better than it used to be.
Scot And Nitasha: [31:20] I agree and that's what we're seeing as well we still have a huge focus on digital Facebook it's probably one of our largest and channels in terms of opposition but. Agreed and turn the prince and then even some of some other channels that are starting to come back that aren't necessarily a saturated such as SMS. Is also accused opportunity more suffering gagement but. I do see a trend of some of these older. More mature Channel coming back and playing in a very saturated space which is digital right now.
Jason: [32:01] Yeah have you experimented with any direct mail I that that detention I guess is another one is those mailboxes are a little less full than they used to be.
Scot And Nitasha: [32:10] Yeah we have actually up until I say about a year-and-a-half ago really focus on really use direct mail for acquisition purposely targeting a specific, Tor zip code and planning our campaigns around that and then we started, staying programmatic direct now on and this was a brand-new way to rain gauge with friends were really excited to touch with and so we started talking with with a company called pebble.
Jason: [32:45] Until what what is pebblepost doing for you.
Scot And Nitasha: [32:49] So we didn't micholi at 35 thing with them at to be engaged with, you think I unsubscribe from our email and go up until that and if the only way. Really engaged or engage with current customers with email or push campaigns or display programmatic campaign and so this was really exciting opportunity to, customer that had unsubscribe from our emails I wear either unengaged from them or didn't like the content, and Shannon promos and Deals if they were still active on our site, and so how probable works is if a user within our specific segment. I'm sorry sight but downstairs and doesn't convert within that session I will postal actually trigger ascend, I'm at our postcard or catalog to that user within 2 to 3 days and it's extremely relevant and targeted. He started targeting users 8th on what products are what category is actually viewed when they did visit the site and it's completely different, customer they essentially then either too we send email to which is also a very saturated space.
Jason: [34:08] For sure and I guess what I love about that is it it it's almost like analog retargeting like that you're at you know what, it's their heads Fades retargeting but but via that that analog channel that the you know is potentially a little less saturated that's brilliant, like you mentioned course email is is very saturated but generally when I talked to folks that still is one of the better Roi tactics for them I'm assuming email is still in your mix as well.
Scot And Nitasha: [34:36] Yeah yeah you know this is one of our additional in terms of retention and so I'm still still. Going to be a huge Focus for us I don't see that changing anytime soon but then again you know a good email campaign may get 20 to 30% open rates right over so even 70% users on the table that were unable to engage with info, when you think about the number of impression that you get from a physical piece of mail. Not only two eyeballs but depending on how larger household is because I get a multiple Impressions on a daily basis if you're like me I leave mail sitting on the counter for 2 weeks, are we by the time. Convergex that amount of exposure is incredible and. Target's a completely different user than those who are very email so good. Yeah I think blue apron's a Believer I'd get something from those guys like every every five minutes from from email.
Jason: [35:54] Yeah I think they're actually just looking to step up the the advertising spend is there they're trying to preserve that IPO.
Scot And Nitasha: [36:02] Call.
Jason: [36:06] One of the things when we talked to folks about the efficacy of their their digital campaigns and particularly email like the big Trend you go to any of the shows these days and you know you throw a rock in your hit 30 sort of personalization vendors, and it seems like you know the the big the big pitch is always personalization on those marketing channels is that. Something you're experimenting with is that working or overhyped or what's your what's your POV on that.
Scot And Nitasha: [36:33] No I think that's a huge Focus for us and something that we have in focus on for quite some time is really. Affiliate emphasizing, a one-to-one customize messages creating triggered messages they found customers havior or purchase Behavior I think that is, Chris Lyons messages and 101 customize messages that we can send that, that is our Focus night and definitely something that have a person and direct now is also helping out with. Just imagine visiting our site and going to our baby category and for some reason or another you don't have, and upconverting with another question but then three days later you received a postcard in the mail and the content is all babies focus with navy at 20% off discount any baby item on site. And I think that opportunity there is tremendous in terms of customization.
[37:41] Quinn and you guys are actually doing that or that something you're doing up for it we are doing currently. So you have that level of of targeting and whatnot in the mail program. One thing I know you guys do as you have boxed bold which I think is your cash back program and then you have a loyalty program total bit about those and what they're geared towards.
[38:07] Bacco program is our partnership with Emma and so if you aren't a customer and you make a purchase on Fox with your AMEX card, you automatically given golden box full which is free shipping. And 3% cash back on all orders so for any regular customer or Montana? I'm a class program is 1% cash back on every single order and so the more you order from box and more. Cash back you get and then a mess up my little get 3% cash back. In the free shipping it just lemonade to the the $50 threshold or how does. And then said so as a shopper it's kind of interesting it kinda reminds me to Chatta although it doesn't have like the sum of the jet elements because you know when you're first starting your kind of like, I can't tell if I'm going to save much and it is you kind of go though you just saving it feels like you're saving more and more than like and I was just paid on my NX I didn't really realize I was into some of their special thing, yeah time to get through you realize you actually saved quite a bit is that that tensioner. Explain that rational so it's a little bit different than that where the more you ask the car somewhere you're saving, our cash back program is based on the total part value so if you're sending $100 in the order then you're going to get $1.
[39:46] So you can see it anytime in your account and so the more times you purchase was box you build on your cash back value.
Jason: [39:58] Interesting like one of the challenges with those kinds of value props. And when it's there's almost a little bit of gamification and you're certainly like driving customer lifetime value with the dollars back but I guess the downside is. You know a customer super price sensitive about one item and they log on your website and they look at the price of diapers and they go somewhere else and look at the price in the. The total savings may not be reflected in that item priced it does that work against you or.
Scot And Nitasha: [40:31] I'm sorry I think they're a lot better value popsci we offer letter. Different art differentiators but you have so we may not if you, don't have it the cheapest price on say it's more about the experience I would say we should we offer to free samples on every order so it's somewhere to go wholesale, shop in Carthage Area 3. A lot of people go just for the samples so we've kind of levitated that online so you can choose to free samples on every order you'll get the 1% cash back on every order on, free shipping or no membership see if I think all and all the customer experience really speak for itself, and then not to mention I don't know if you receive battery if you notice it in your box. But we also have handwritten notes, to every customer that I was just too so there's a nation with personalized S5 to our entire order earrings as well. Yeah I seen that kind of borrows from the chewy folks today I don't know who started it first but they were always well known for them yeah.
Jason: [41:41] Scot Scot has a giant collection of postcards that same and you guys order a lot of Oreos.
Scot And Nitasha: [41:46] Call podcast research those for them the Mondelez episode.
Jason: [41:52] Exactly.
Scot And Nitasha: [41:53] Oh yes we've done a Facebook live with it with model eating Oreos so and said I love you.
Jason: [42:02] Very cool I'm sad to see their stock went down based on the Amazon announcement talking about the impact on cpgs.
[42:12] Yeah but I'm glad you mentioned the sampling cuz that feels like untapped area for a lot of e-commerce players I'm imagining. The sampling is one of those areas that you're able to use as a shopper marketing program for your Brands is that true.
Scot And Nitasha: [42:27] Yeah, a huge part of our current marketing strategy with our suppliers and and they love it because it's a great way for us to testing products and so for considering a sorting a new item, stumbling program is a great way to see how our customers will respond to it and then we could also be engaged and put those customers after the fact and send them offers on the full size items, we do I said or some I am based on what they've actually chosen to add the car, and a kind of potential there and you're offering, products that are new to the platform or just even leave I wasn't as limited-time offers or so you're a big focus and comes over sampling strategy.
Jason: [43:17] Yeah and so this could potentially be controversial but do you work the your private labels into the sampling program as well.
Scot And Nitasha: [43:26] Especially when we launch a new product and that's one of the first places that I will want to watch it as is the other sampling program.
Jason: [43:36] Yeah I love that tactic again it just, there you know so many boxes are going out right now not taking that opportunity to introduce that customer to other high-margin products that they could potentially get addicted to seems like a real mess for a lot of players so I love that congratulations.
Scot And Nitasha: [43:53] Yeah. Thank you I absolutely agree especially for a brand that many new customers haven't heard of other don't know much about a great way to introduce it to them.
[44:07] Cool one thing I thought was kind of a little bit of a non sequitur I was navigating through the site looking at different categories and of the, one that really stuck out as being an unusual was hotel and travel with, what's that all about. Last week and end of the following, today this is something that our partnership Cena's been working really hard on it and we're really excited about it at all so seem like a, a natural extension for box, I still have our vacation packages and now our customers and can go on and and really find some of the best hotel deals I played around with that and I haven't found better deals for for many of the hotel but that I was searching and so. A great. Please our customers I think of a natural extension of the business. So your Skype now getting a new variety of non-physical kind of stuff.
[45:19] Yeah if I see if you're on Boston you're looking as backup for your home or your business and why not be able to book a vacation and at the same time and so. Skyler really excited about this and they don't I don't think this I think this is the beginning of a much larger partnership.
Jason: [45:42] Very interesting you don't I'm curious so we talked a lot about your business today we talked you know you're in a category that's, I would characterize a sort of digitally immature and so you know you're an advanced digital player in a in a space that that seems like it's just on the verge of getting disrupted if you jump in your time machine and look forward to your two, you know how do you see the the industry in your category changing do you think it's going to look a lot like it looks now do you think it's going to change dramatically.
Scot And Nitasha: [46:17] What I think with the time by we mentioned before especially with the Whole Foods acquisition I think, more and more brands are going to invest more dollars into digital and we're already starting to see that now are at the econ, your arms of specific brands are growing larger and larger and they have a lot more, and as well and so I see that really being a huge opportunity over the next year or so so really, incident and create a new and exciting opportunities with some of these friends, one thing that I think that I went really love about working with fox, is the fact that we're so small and then bowl and we're willing to Casting things and new features and so we've actually created features for a brand based on some of their preferences, and though I see that continuing to be a trend machine shine over the next year or so.
Jason: [47:21] Very cool III suspect that as as you know the brand start getting really serious about digital alike as we see some consolidation of you know there's a very long time grocery at the moment and brick-and-mortar grocery. Anna.
[47:37] You know it feels like there's almost this bifurcation that you're going to potentially benefit from that like the traditional grocery store is getting really disrupted because it's it's starting to be really driven by fresh and organic. And you know so so folks are looking for. One experience to get that really fresh stuff and then once you have that really fresh stuff you say are you know what's the most convenient way to get all the rest of my. My goods in so it almost feels like.
[48:04] You know where I used to do everything as a One-Stop shopping at Kroger now I'm starting to see people you know that are. Going to all the or Trader Joe's or Whole Foods for their they're fresh and then they're relying more on club or. You know are are big online friends for for all of those replenishment items.
Scot And Nitasha: [48:25] Construe.
Jason: [48:29] Well nitasha congrats on your success so far. I think that's going to be a good place to wrap up because it is happen again we've perfectly wasted all of our a lot of time. So when a remind the listeners that they're always welcome to continue the dialogue on our Facebook page and of course have you liked this episode we'd sure appreciate a review on iTunes if you didn't like this episode just send an email to Scott.
[48:55] Nitasha thanks very much for being on the show and joining us.
Scot And Nitasha: [49:00] Thank you so much for having me as a pleasure to hop on the podcast you guys are building in wish you guys nothing but the best. I thought I think you sound like.
Jason: [49:16] Until next time happy commercing.