about business and Alfa Bank in Belarus continue the joint project “Working Group”. In a series of live broadcasts, we analyze real cases of small and medium-sized businesses. Hosts Dmitry Alfer (“Pro Business”) and Yevgeny Zadorenko (Alfa Bank in Belarus), together with experts, help companies find weaknesses, give advice on development and answer the most pressing questions of entrepreneurs.
This time we are analyzing the case of OxDetox.by, a service for the delivery of healthy food rations. One of the co-founders of the project, Maxim Knyazkin, turned to the Working Group to find out why clients do not stay for years and what can help increase the company’s revenue by 3 times.
Partner of the season “Working Group 2.0” – Alfa Bank in Belarus.
Alexander Pankovmanaging partner of KG “Here and Now”;
Sergei Kazakdirector of marketing and business development Artox Media Digital Group
About the service OxDetox.by
The OxDetox.by project has been operating on the Belarusian market since 2015. At first, the service was focused on the production and delivery of detox juices, but then it was decided to switch to full-fledged healthy diets with calculated calorie content. Such a product was designed to save customers time for cooking and self-calorie counting.
During its work, OxDetox.by managed to attract over 2600 clients. The main target group is women and men aged 25 to 40 who have an above average income, take care of their diet and have little free time. The service works on a subscription model – rations are planned for a month without menu repetitions. About 120 customers subscribe to the service daily.
Average deal check – 32.5 Bel. rub. (about $12.5).
Main Marketing Channels — contextual advertising, targeted advertising on Instagram, word of mouth, affiliate communications. On average, a company spends 9,250 bel per month on marketing. rub. This allows you to attract 157 new clients per month. The average term of a client’s subscription is 2 weeks.
OxDetox.by employs 14 people, 2 administrators are involved in sales, who process incoming requests – about 300 leads per month.
Company revenue is 102,000 Bel. rub per month.
The company plans:
reach the proceeds of 300 thousand Bel. rub. per month (i.e. make x3);
create your own IT ecosystem and carry out the maximum digitization of your business;
launch franchise sales.
Why did the company apply to the Working Group?
The service has been operating on the Belarusian market for more than 7 years, but the average client subscription period is only 2 weeks. It is important for a company to understand how to retain attracted customers and keep their interest over a longer period of time. OxDetox.by is also considering the possibility of entering the corporate segment and launching food delivery to the offices of large companies. However, the feasibility of developing this direction now raises questions.
Therefore, the co-founder of the service Maxim Knyazkin turned to the experts with the following questions:
How to increase the number of new customers, LTV, average customer lifetime?
Is it worth it to go to the wholesale direction (delivery of lunches to offices, corporate catering)?
Which marketing channels are best used in this business model?
Will high marketing costs bring proportional results?
1. Rebrand or split the site for the main and additional products.
At first, the service was engaged in the production and delivery of detox juices, but then it refocused on full-fledged healthy diets. At the same time, the brand name and its positioning were not corrected. According to experts, this approach can be disorienting for customers visiting the site or looking for information on the Internet. In addition, the focus of the title on detox products artificially narrows the audience, cutting off customers who are not directly interested in detox nutrition.
2. Clearly define the customer’s request.
Now the company is targeting people who don’t want to spend time cooking and counting calories. However, there are many solutions for this segment of customers – delivery services from cafes and restaurants, services of personal chefs and housekeepers. This means that OxDetox will have to compete with giant companies. In addition, experts are sure that no more than 10 thousand people in Belarus are interested in healthy eating, based on the statistics of search queries. This is a small segment of the audience that limits business growth.
According to experts, the service should focus on more common customer requests – for example, the desire to lose weight or the search for special nutrition for hypertensive patients. The audience with such “pains” is much more numerous.
3. Determine the reasons for the outflow of customers.
Experts are sure that the company needs to focus on customer retention. To do this, it is worth getting data on why customers unsubscribe from diets after an average of 2 weeks. To obtain such data, you can use online surveys, gamified banners and other tools. Based on this data, you can determine what exactly does not suit customers and create barriers for them to unsubscribe.
4. Launch collaborations with specialists.
The service can attract customers through collaborations with specialists in related fields – for example, with fitness trainers, nutritionists, doctors. A well-known influencer on healthy lifestyles on social networks is able to bring dozens of clients to the service with a one-time cooperation. And if you agree on a collaboration with microbloggers on a regular basis, you can get a stable stream of loyal audience.
5. Work on site optimization.
Now the company’s website has the potential to increase loading speed. This is important for users who access the site from mobile devices – and there are more than 60% of them.
Also, the OxDetox site needs additional SEO optimization. Now its compliance with search queries is estimated at 54%, while competitors’ indicators reach 70%. This means that the resource has significant potential for development and optimization.
Watch the full episode on our YouTube channel:
How to become a member of the Working Group?
If you want to become the hero of the project, describe the issue of your business that you would like to analyze together with our experts. Send it to [email protected] marked “Working Group”. We will invite the authors of the most interesting questions to the studio and analyze your case together with our mentors and presenters.
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