Research June 11, 2015

Proactiv Offers Not Always Channel Agnostic

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As a direct-response business, Proactiv relies on promotions to help acquire new customers. Their offers are not always channel-agnostic, meaning a consumer might be served a different opt-in incentive or introductory pricing plan depending on the channel through which they enter.

Proactiv’s on-site personalization schemes must be highly sensitive to channel, or the brand risks disappointing the customer when an offer doesn’t carry through to checkout after it is advertised to the consumer. Proactiv is also protecting the margins of their continuity model, by serving promotions selectively to new customers only.

Today, we’ll walk through four scenarios observed from Proactiv, illustrating how the brand is approaching personalization from a customer acquisition perspective.

Scenario #1

Proactiv wants to opt-in consumers as cheaply as possible. If a consumer already appears be familiar with the brand, because they have searched for it by name on Google or navigated directly to Proactiv.com, the site serves the most basic introductory offer.

Conversion is incentivized through educational content on the landing page. In checkout, the consumer unlocks special pricing of $29.95 for the Proactiv+ 3-Step System, plus free shipping, but with no bonus offers.

Scenario #2

If the consumer bounces, Proactiv begins to follow them with retargeted media. They also sweetened the deal with a special offer, free Blackhead Dissolving Gel.

If the consumer clicks on the display ad, they skip the content-landing page and head straight to checkout. We see the Blackhead Dissolving Gel is now promoted on this page, and the 3-Step System has been further discounted down to $19.95.

Scenario #3

Proactiv runs home shopping segments featuring Special TV Offers. A consumer who searches “Proactiv QVC” on Google, suggesting they have recently seen one of the segments, is served a paid search ad with custom copy promoting the TV-exclusive Deep Cleansing Brush. If the consumer clicks the ad, they again bypass the landing page and go directly to checkout.

This time, the page is personalized to promote the Deep Cleansing Brush, and pricing is consistent with the televised offer of $29.95.

Scenario #4

At this point, the consumer has visited Proactiv.com multiple times, but has yet to convert. Proactiv “goes in for the kill,” throwing both content and special offers at the customer.

Aggressive retargeted media leads to a Hot Deal page with both a countdown clock and acne testimonials. Proactiv has further upped the ante. $29.95 now buys a 5-Step System plus two free gifts and free shipping.

It is important to note that the Proactiv+ 3-Step System typically retails for $89.85 plus shipping and handling. After a consumer subscribes to the system, they are cookied so that they never see any of these introductory offers, regardless of the channel through which visit Proactiv.com.

Download a copy of L2's Intelligence Report: Personalization: http://www.l2inc.com/research/personalization-2015

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