How simplehuman used augmented reality to create a new $10MM revenue stream
Learn how simpehuman created a new $10MM subscription business from their existing customers with digital transformation.
Learn how simpehuman created a new $10MM subscription business from their existing customers with digital transformation.
simplehuman is a designer and manufacturer of cutting-edge kitchen, bath, and beauty tools such as trash cans and touch-free soap dispensers. Their products are sold directly to consumers and through brick-and-mortar retail stores globally.
Now you might ask, “where’s the opportunity for a subscription service with a company like simplehuman? They sell trashcans!” Well, the answer lies in the consumables for their products. It only makes sense that tailored fit can liners come with high-quality trashcans. simplehuman’s “refill store” was already in place to service this offering to their customers selling consumables such as soap refills, paper towels, and even deodorizers for their trashcans. However, it was underutilized by their consumer base and was a significant opportunity to increase their sales and build more loyalty among their customers.
By introducing a subscription service, simplehuman would capture recurring revenue while also providing its customer base with consumables on-demand. It’s an excellent way to provide reliable value to their customers and stay and solidify brand loyalty over an extended customer lifecycle.
However, when launching a subscription service, simplehuman encountered a challenge: no existing solution could integrate into their existing infrastructure without sacrificing features or compromising the user experience.
To solve this problem for simplehuman, we needed to redesign their website and app and find a digital transformation partner to implement a subscription service that seamlessly integrates into their e-commerce platform.
I was fortunate enough to lead a part of this project with simplehuman and witness the impact of this first-hand. Here is my account of some of the challenges we faced.
We started by enhancing the user experience on simplehuman’s website and mobile app, offering a more personalized journey for customers. Beginning with an augmented reality feature that lets customers virtually demo simplehuman products — for example, helping inform the purchase decision and confidence by seeing how a trashcan would look and fit in their kitchen before purchasing it. Additionally, we created a virtual home assistant that could trigger the purchase of consumable supplies by integrating with the controls for their appliances or with logic around time since their last purchase.
Finally came the UI. We needed to deliver an elegant and intuitive interface that reflected the exceptional design quality of simplehuman’s products. The goal was to create non-intrusive customer journeys that would increase and retain subscription revenue.
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The results spoke for themselves: simplehuman converted over 50% of their users into paid subscribers, achieved 95% organic adoption, and saw a significant rise in brand awareness. The subscription service also generated a new revenue stream generating $10 million from existing customers!
Through digital transformation, simplehuman created a new subscription business from their existing customers by simply rethinking the user experience and realizing embedded opportunities within their current offerings.
If this resonates with you, or you want to explore what’s possible for your business, Schedule a free consultation with us today to explore what’s possible with digital transformation.