Hairlocs Hair Extensions

COMPETITIVE STRATEGY

Masterfully winning over customers from the competition by providing the best value proposition on the market through a very creative competitive strategy.

strategy
redesign
cro
marketing
tracking
development
UX / UI

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The Story

BREAKING THE INDUSTRY RULES

The hair extensions industry in the United States generated revenues of over 400 million dollars. The industry is divided half in half between real human hair extensions and synthetic ones as well as professional (done in salons) and DIY or clip-ins. Hairlocs is focusing on professionals selling the highest quality “full cuticle remy” human hair extensions and offering the lowest prices in the entire industry with a very creative business strategy nobody else thought about. When creating the business and marketing strategy for Hairlocs together with our partners from McCandless Group we simply decided to break all the rules and industry standards in order to gain insurmountable competitive advantage and position the brand as the best value proposition on the market. The whole idea is to directly, shamelessly and aggressively steal customers from the competition. Read on to learn how we did it.

The Challenges

The competitors literally have more money than the law allows. They are all backed by HUGE investment funds. So we have to be way more efficient to win.
The reputation of the brand was totally destroyed by the previous ownership and trust in the brand was at an all-time low.
The value proposition we came up with is almost too good to be true and customers have a hard time believing it is actually true. Some directly called it a scam. Even though that’s actually not the case and the offer is just the best on the market!

The Goals

Rebrand the company, redesign the website, revamp the value proposition & the competitive strategy in order to steal market share from competitors.
Digitalise every aspect of the company - fulfillment, customer service, online store, social media marketing, advertising campaigns & customer aquisition as well as implement trust systems and much more.
Achieve the lowest cost per aquisition
of customers within the industry.

The Impact

We turned Hairlocs around in such a short time that it blew our own minds. We hacked up the website in less than a month. The marketing campaign was ready even before that and the results came immediately. Hairlocs’ revenue grew by 50% in the first month! Customer acquisition cost droped 10 times. The conversion rate was 11%. WHAT??? We were hoping for 1.5% initially. Since then we have signed up over 7000 customers which are valued at over $1000/year. That’s $700 000 in additional revenue per year ... But the sweetest thing is that we stole nearly all of them from the competitors!

Our Approach

Our approach was inspired by the CEOs deep understanding of the industry. He has been in it for over 20 years and knew exactly what his customers wanted. And we broke all the industry rules and standards to give it to them ... we made our education/certification free and online while everyone charges for it, we removed any certification requirements for professionals to purchase from us because they are already our competitor’s clients they know how to do their job and don’t need training. We also removed all the unnecessary variations of the products in order to heavily cut down on costs while still keeping the highest quality. We removed all barriers to purchase (which are very common in the industry) and then reduced the price by eleminating variations which are not commonly used, gave the people freedom, the best price and quality and the rest is history.

Top Things about
The Campaign

We set ourselves up for success by carefully listening to the CEO’s expertise and forming a great competitive strategy as well as a revamped value proposition.

The real key to the campaign was the precise targeting. Our main competitor’s customers! It’s that simple. Find out who they are, give them a better offer and win them as customers.

With such a set up we reached thousands of our competitor’s customers through clever email and social media marketing campaigns achieving incredible efficiency.

The Results

Hairlocs was almost dead and forgotten but after this campaign, it was reborn anew and is now not only profitable but growing at an amazing rate winning over customers from competitors left and right. A secondary benefit is that by revamping the website more and more customers purchase from the website reducing the load on our customer service team. The average order value increased too because of some cool up-selling features in the cart.

Revenue increased by 51%
in the first 30 days.