BrazilTakami works with SKIM on optimizing subscription model for skincare products
When Takami embarked on the ambition to give its own subscription model a face-lift, the Japanese skincare brand tapped international marketing consultancy firm SKIM for guidance.
Japan-headquartered Takami is a premium skincare brand that specialises in skin peeling. The brand was founded in 1999 and has been part of L’Oréal since 2021. Takami’s skincare products are available in Japan and in some other Asia Pacific markets, including the Chinese domestic market where the brand is particularly popular.
To build on its long-standing success, Takami recognized the need to proactively ensure its product subscription model remained appealing, relevant, and poised for continued growth in an increasingly competitive market. In doing so, understanding the evolving preferences of the customer base was therefore crucial.
Takami partnered with SKIM to answer a critical question: “How could Takami evolve their subscription model to achieve sustainable growth in a competitive market, without compromising their core values?”
The approach: Uncovering insights and igniting innovation
SKIM collaborated closely with Takami to develop a customized strategy that addressed the brand’s unique needs and ambitions for its subscription model. Input for the strategy included stakeholder discussions, collaborative ideation, and advanced analytics.
Step 1: Understanding internal needs
SKIM conducted in-depth interviews with key stakeholders from Takami and the groups of management outside of the brand. These interviews served several crucial purposes:
- Gain clarity: The interviews helped SKIM gain a deeper understanding of TAKAMI’s specific business challenges and objectives for their subscription model
- Uncover past approaches: By exploring previously implemented strategies, SKIM could identify both successes and areas for improvement
- Align perspectives: The interviews helped to understand local and corporate perspectives, ensuring everyone was aligned on the project’s goals
- Generate potential solutions: Stakeholders provided valuable input on potential solutions, sparking initial ideas for optimizing the subscription model
- Set clear expectations: The interviews allowed SKIM to capture stakeholder expectations for the research and ensure alignment on desired outcomes
Step 2: Fostering collaborative innovation
Informed by the information gathered in the stakeholder interviews, SKIM facilitated a workshop to bring stakeholders together and generate innovative ideas for enhancing the subscription model. This collaborative session explored 18 potential levers, including delivery options, curated product bundles, and more sustainable choices.
Step 3: Analyzing consumer preferences
To test the viability of the ideas generated in the workshop, SKIM conducted a conjoint analysis to quantitatively assess consumer preferences related to various subscription attributes, such as delivery frequency, loyalty programs and product bundles. This provided crucial information for understanding market demand.
Optimizing subscriptions with a simulator
To translate insights into actionable strategies, SKIM developed a customized simulator tool for Takami. This interactive tool leveraged the data from the conjoint analysis, allowing Takami to model the potential impact of various subscription offerings on key metrics like subscriber acquisition, retention, and revenue.
Takami can use the simulator to explore various scenarios and, with SKIM’s expert guidance, assess risks and make strategic decisions that optimize their subscription model for both customer satisfaction and business growth.
The outcome: A compelling subscription service
By focusing on what their consumers value the most, Takami has been equipped to progress its subscription experience, making it more compelling for its (potential) customers. This has led to higher customer satisfaction, acquisition and retention.
Commenting on the collaboration with SKIM, Minori Amaya, General Manager at Takami, said: “We were incredibly impressed with SKIM’s dedication and the actionable results they delivered. Their recommendations have given us the confidence to make strategic decisions that will drive our future growth.”
