FINAL RECOMMENDATIONS
AGENDA
1 2 3 4 5 6
Project Background Customer Segments Strategies, Tactics, & Implementation Financial Implications Risks & Contingencies Recap
EXECUTIVE SUMMARY ●
Birds is launching a mobile app to make it easier for customers to get a haircut
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The app requires promotional strategies to drive app adoption for both new and recurring customers
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We expect 5,985 customers to adopt the app due to in-store methods and 2,169 customers to adopt due to digital promotions for a total of 8,154 adoptions, surpassing our target of 7,500 total customer adoptions within a 3 month period
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Our customer segments are comprised of three groups: Group 1: “Ready to Download” (53%), Group 2: “Skeptical to Download” (27%), and Group 3: “Prospective Customers” (20%)
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We recommend driving adoption by targeting Group 1 & 2 customers with in-store methods and Group 3 customers through digital promotions
PROJECT BACKGROUND
PROBLEM Getting a haircut at Birds can be a challenge
Birds is launching an app
Birds wants various promotion strategies to ensure a successful launch
GOAL DURING RESEARCH REVIEW â—? Develop separate promotion plans for recurring and new customers based on their customer journey location that will achieve adoption of the app Birds is going to launch Recurring Customers
New Customers
Month 1: 1,000 adoptions Month 2: 2,500 adoptions Month 3: 2,500 adoptions +_____________________ 6,000 adoptions
Month 1: 250 adoptions Month 2: 625 adoptions Month 3: 625 adoptions + _____________________ 1,500 adoptions
80% OF TARGET
20% OF TARGET
LOGIC BEHIND PAST ADOPTION PROJECTIONS Recurring Customers Monthly Birds Customers Recurring Customer % Monthly Recurring Customers Call-ahead Customer % App Adoption Max Target Expected Adoption % Expected Adoption Amount
New Customers 25,000
Monthly Birds Customers
25,000
80%
Prospective Customer %
20%
20,000
Monthly New Customers
5,000
Call-ahead Customer %
60%
60% 12,000 50% 6,000
App Adoption Max Target Expected Adoption % Expected Adoption Amount
3,000 50% 1,500
POLISHED OVERALL GOAL â—? In order to drive adoption of the Birds app, we recommend developing in-store promotion plans for recurring and first-time customers and digital promotion plans for prospective customers IN-STORE
DIGITAL
Recurring & First-Time Customers
Prospective Customers
Month 1: 2,940 adoptions Month 2: 1,827 adoptions Month 3: 1,218 adoptions +_____________________ 5,985 adoptions
Month 1: 723 adoptions Month 2: 723 adoptions Month 3: 723 adoptions + _____________________ 2,169 adoptions
73% OF TOTAL
27% OF TARGET
IN-STORE PROMOTION ADOPTION PROJECTIONS In-Store Promotional Methods → Focused on recurring & first-time customers Month 1
Month 2
Month 3
Method Total
Weight
In-Store Signage
1470
882
588
2,940
49%
Stylist Interaction
840
504
336
1,680
28%
Front Desk Interaction
630
441
294
1,365
23%
Monthly Totals
2,940
1,827
1,218
5,985
100%
Key Takeaways ● We expect in-store signage to account for roughly half of app downloads through in-store promotional methods ● Monthly downloads are expected to decrease over time as target customers begin to use the app ● Stylists and front desk employees need to use emotional awareness to adapt every conversation about the app to each customer
DIGITAL PROMOTION ADOPTION PROJECTIONS Digital Promotional Methods → Focused on prospective customers Month 1
Month 2
Month 3
Method Total
Weight
Paid Social
368
368
368
1,104
51%
Organic Social
163
163
163
489
23%
Website Content
192
192
192
576
26%
Monthly Totals
723
723
723
2,169
100%
Key Takeaways ● We expect paid social media content to account for roughly half of app downloads through digital promotional methods ● Monthly downloads are expected to remain roughly consistent over time as prospective customers become exposed to the Birds app ● Key content, such as a ~30 sec. instructional/demonstrational video, will be useful for all three main digital methods
CUSTOMER SEGMENTS
THREE TARGET CUSTOMER SEGMENTS 20%
3
Easiest group to drive adoption
2
Primary Focus (80% of target)
1
Source: Interviews of Birds Customers Sample of 39 customers from 5 locations
= Recurring & First-Time Customers = Prospective Customers
THREE TARGET CUSTOMER SEGMENTS GROUP 1
GROUP 2
GROUP 3
Ready to Download
Skeptical to Download
Prospective
PRIMARY FOCUS: In-store promotions
PRIMARY FOCUS: Digital promotions
Our promotional strategies will be separated into two groups: IN-STORE and DIGITAL
STRATEGIES, TACTICS, & IMPLEMENTATION
APPROACH GOALS / OBJECTIVES
Reach Birds app adoption target of 7,500 within the first 3 months following launch
STRATEGIES
IN-STORE Increase awareness and need of the app for Group 1 (Ready to Download) and Group 2 (Skeptical to Download) through in-store means
TACTICS SIGNAGE - Use large, eye-catching signage (e.g. posters, A-frames) around the store STYLISTS - Have the stylists interact with customers about the app to drive downloads FRONT DESK - Have the front desk employees inform customers about app to drive downloads PHONE SCRIPT - Replace the current phone recording with one that mentions the app
DIGITAL Introduce the app and barbershop to Group 3 (Prospective Customers) through digital means
PAID SOCIAL - Invest in social posts (primarily on Facebook) with ad dollars behind them ORGANIC SOCIAL - Create social posts on Birds account with no ad dollars behind them WEBSITE CONTENT - Increase exposure of the app on the Birds website
IMPLEMENTATION PLAN Testing Phase / Soft Launch at SoCo Location
App Mega Launch
MONTH 0
MONTH 1
MONTH 2
MONTH 3
Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4 Put up Birds App signs App signage remains in stores Train front desk/stylists Front Desk/Stylists informing people Phone script production Phone script used Paid social Organic social Video production for web Post video on website Video remains on website Survey for adopters
RECOMMENDATIONS
RECOMMENDATIONS 1
Create in-store signage to promote the app
2
Create a “one-pager� for the front desk employees and stylists
3
Record a new, fun phone script
4
Create unique social posts (for both paid & organic purposes)
Recurring and First-Time Customers
Prospective Customers
5
Create visuals (e.g. banner, video) for the website
RECOMMENDATIONS Create in-store signage to promote the app — We recommend large, eye-catching signs since Birds stores have quite a busy ambiance, and we want to expose as many customers as possible Why it works: Customers are already waiting in the store, and the app signage will show them an alternative, more efficient way to check in for future visits Points to hit: ● Easy-to-use, simple app ● Less (or no) wait time ● Easier to plan ahead for a haircut ● Don’t have to talk on the phone — Include a trackable download link so we will know if people were referred by these signs
RECOMMENDATIONS Create a “one-pager” for the front desk employees and stylists so they can properly promote the app and explain its benefits to customers Why it works: ● Customers already have conversations with the front desk employees and their stylists ● Training employees about the app will allow them to knowledgeably bring up the app in conversations with customers Points to hit: ● Easy-to-use, simple app ● Less (or no) wait time ● Easier to plan ahead for a haircut ● See your stylist’s schedule ● Where to download ● For frequent customers, target their needs/quirks
RECOMMENDATIONS Record a new, fun phone script that informs customers of the new Birds app Why it works: ● Currently, most recurring customers interact with Birds through a long phone recording ● By mentioning the app from the beginning, they are incentivized to install it immediately Use the Hyde Park location’s usual phone message, but insert the following at the beginning: “Thank you for calling Birds Barbershop. The Birds team is thrilled to announce the launch of its first-ever app on the App Store. The purpose of the app is to continue our company’s mission to ‘take the chore out of getting a haircut.’ You can find our app by searching for ‘Birds Booking’ on the App Store, or you can find it on our website at birdsbarbershop.com. The app is a major improvement over our tedious call-ahead booking system – the one you are having to suffer through this very second. Now do yourself a favor and download our app today to book your next haircut with Birds.”
RECOMMENDATIONS Create unique social posts to distribute via Birds accounts. This would be implemented with the goal of reaching prospective customers Use location-based Facebook Ads to target ads to users in-store or at locations of partners (e.g. Alamo Drafthouse) using Location Services Why it works: Posting unique content on social media draws attention for prospective customers to download the app.
RECOMMENDATIONS Create visuals for the website — Since Birds has many monthly visitors (>17k) to their website, capitalize on these views by having easy links to download the app and other informative visuals such as videos, banners, and header images Why it works: Most customers visit websites on mobile and providing information about the app will allow them to click a direct link and install it on their phone — Include a trackable download link so we will know if people were referred by the website
LONG-TERM OPTIONS ●
A Loyalty Program (“BWB: Birds With Benefits”) ○ Birds customers are remarkably loyal and several of them brought up a loyalty program during our customer interviews ○ We recommend capitalizing on this loyalty and having a program for customers to enter a repeat-purchase funnel whenever this can be tracked through the app
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Late Adopter Discounts Using Promo Codes ○ In the future, if the app has the capability to do so, we recommend offering “late adopter discounts” to those who did not download the app initially (in a similar style to Uber/Lyft offering a “free first ride” constantly) ○ This would include a promo code that can be entered directly into the app for first-time users
FINANCIAL IMPLICATIONS ●
Cost per Adoption*: ○ In-Store Signage: $0.34 per adoption ○ Paid Social on Facebook: $2.74 per adoption ○ Additional Front Desk Employee: $3.27 per adoption
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How much Facebook Ads cost ○ Higher cost per app installation ($2.74) is attractive due to gaining more customers and getting a healthy return on our investment ○ Facebook won’t spend any more than your allocated budget ○ Bids will be more expensive around major holidays
*Based on Cost per Adoption Model in Appendix Source: Buffer App - Advertising Cost and Marketing Budget https://blog.bufferapp.com/facebook-advertising-cost
In-Store RISKS & CONTINGENCIES Signage CATEGORY ●
Barriers to adoption
RISKS
CONTINGENCIES
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App storage space on phone
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Only 9.1 MB, promote as “byte-sized”
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Infrequent use of app
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Promote app only related discounts and benefits
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Profitability
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Group 1 and 2 customers taking advantage of app discounts
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Delay launch of digital discounts
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App reach
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Advertising does not work
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Retool efforts using metrics and data; re-evaluate ad targeting
RECAP
CONCLUSION In order to drive adoption of the Birds app, we recommend developing in-store promotion plans for recurring & first-time customers and digital promotion plans for prospective customers to reach 7,500 people in 3 months IN-STORE
DIGITAL
SIGNAGE - Use large, eye-catching signage (e.g. posters, A-frames) around the store
PAID SOCIAL - Social posts (primarily on Facebook) with ad dollars behind them
STYLISTS - Have the stylists tell customers to download the app
ORGANIC SOCIAL - Social posts on Birds account with no ad dollars behind them
FRONT DESK - Have the front desk employees tell customers to download the app
WEBSITE - Increase exposure to app on the Birds website, especially on stylist schedule pages
PHONE SCRIPT - Replace the current phone recording with one that mentions the app
5,985 adoptions
2,169 adoptions
BIRDS TEAM CONTACT INFORMATION
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Sarah Khan Email: sarahgkhan@hotmail.com
Phone: (682) 888-4262
Karan Mahendroo Email: karan.mahendroo@gmail.com Phone: (214) 906-4320
Kaylee Huang Email: huang.kaylee@gmail.com
Phone: (361) 655-2073
Justin Todes Email: justin.todes@utexas.edu
Phone: (713) 822-1145
Bryce Westbrook Email: brycewestbrook@utexas.edu Phone: (936) 645-3229
Amy Xin Email: amyxin919@gmail.com
Phone: (469) 386-1883
APPENDIX
APP ADOPTION MODEL
COST PER ADOPTION MODEL
RESOURCES: MARKETING & CREATIVE WORK UT organizations with design and marketing focuses to help with creative / strategy projects. ATX Studio Studio is a student run design agency that takes on real client projects from the Austin community. Our team of designers has experience in graphic design, photography, UI/UX, web design and development, and videography. Contact/Learn more: https://www.atxstudio.org/ (work request form found on website under “Request Work�) Rate: Work is pro-bono for nonprofits, but will be a quote for others
Minutemen Creatives MinuteMen Creatives (MMC) is a student-run advertising organization within The University of Texas at Austin, specializing in creative strategy & execution. Contact: minutemencreative@gmail.com Learn more: https://www.facebook.com/MinuteMenCreativeAgency/ Rate: Work is pro-bono
The AMA Agency Group The AMA Agency Group is a student run marketing agency within The University of Texas at Austin with past experiences in content creation, paid media, digital marketing, and more. Contact: kellycoverick@gmail.com (Account Executive) Learn more: http://texasama.org/what-we-offer/the-ama-agency-group/ Rate: Work is pro-bono
RESOURCES: PART-TIME UT STUDENT INTERNS Recommended UT job boards and how to get on them. HireUTexas If we want the biggest potential job post reach (50k students). Log-In/Sign-Up: https://recruit.utexas.edu/employers/hireutexas/ Hire a Longhorn If we want to target students looking for part-time roles. Log-In/Sign-Up: https://hirealonghorn-csm.symplicity.com/employers/index.php McCombs School of Business Job Board If we are searching for students with a focus in traditional marketing, digital marketing and/or digital promotions. Log-In/Sign-Up: https://msb-utexas-csm.symplicity.com/employers/index.php?signin_tab=0&js_disabled=0 Moody College of Communications Job Board If we are searching for students with skills public relations, creative, and/or media planning. Log-In/Sign-Up: https://moody-utexas-csm.symplicity.com/employers/?signin_tab=0&PHPSESSID=113525ecc8105ba385b1c681e367814b