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How to Make The Most of a Product Drop

How to Make The Most of a Product Drop

In this sixth post in a series based on the Art of the Drop report, we break down the third and final step in a successful drop — leveraging engagement post-launch

Product drops can be one of the most effective ways for brands to create hype and solidify customer loyalty, but behind each seemingly random “drop” lies meticulous planning, supply chain optimization, and tonnes of customer data and market research.

PSFK's recent report called The Art of the Drop, developed in partnership with PCH, breaks down the product drop into three key components: planning, execution, and leveraging the drop. In the last article, we discussed how large brands and small startups alike are successfully executing product drops. In this final stage, we explore how to use the drop as the basis for a long-term loyalty play, fostering ongoing engagement through CRM and membership strategies

Below, three key trends are laid out that help to illustrate the ways in which brands can successfully leverage a product drop for maximum impact.

Dynamic Outreach

A successful drop is able to mobilize both brand loyalists and new customers alike, creating a golden opportunity to better understand different categories of customers and their behaviors via advanced CRM and marketing systems, like creating detailed shopper profiles. Cosmetics brand Shiseido implemented a customer data platform that lets it leverage info generated by its loyalty app in order to create a holistic view of the customer and build hyper-relevant offers. Consolidating data from its loyalty program, in-store and mobile POS,  website visits, and third-party data, the beauty brand saw a 20% jump in in-store revenue per member, according to Treasure Data's site.

Members Only

According to the data, when consumers feel more connected to brands, they are 76% more likely to buy from that brand over a competitor and 57% more likely to spend more. Looking beyond loyalty points, there are numerous ways to get creative and reward committed brand fans, be it with early access to new products or one-of-a-kind experiences. To hype the  release of its Air Max 720 shoe, activewear brand Nike created an exclusive virtual pop-up store where shoppers can buy limited-edition merchandise only after purchasing the sneaker itself, accessing the shop with their order number.

Deeper Engagement

Many brands are tapping into fan passion for their favorite brands to promote deeper engagement. Compared to satisfied customers, emotionally connected customers have a 306% higher lifetime value (LTV), and will recommend brands at a much higher rate (71% vs. 45%). Rewarding loyalty program members for a range of actions beyond making a purchase, such as sharing on social media, encourages ongoing engagement. Activewear brand Reebok created a tiered loyalty program that rewards members for interacting with the brand. Not only can members earn points for their purchase, but they can also earn points toward experiential rewards for attending events, reviewing products and simply creating an account.

This article is part of a series based on PCH and PSFK's Art of the Drop report—download the full report free here