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The Honest Company's evolving strategy

News, 23 June 2016

NEW YORK: The Honest Company, a consumer packaged-goods manufacturer co-founded by actress Jessica Alba, is making heightened use of analytics and similar techniques to increasingly "optimise the customer experience".

During a session at TechCrunch's Disrupt NY 2016 conference, Alba discussed how the fledgling enterprise – which has rolled out a range of non-toxic offerings from diapers to shampoo and vitamins since 2011 – is evolving its strategy.

"We're thinking more along those lines of the customer experience – and really optimising the customer experience so it feels authentic and personal to them," she said. (For more details about the organisation's strategy, read Warc's exclusive report: The Honest Company: from star-powered startup to CPG survivor.)

Achieving that goal in practice, she reported, requires "really taking in your consumers' wants and needs, and their buying behaviour."

Its other priorities include leveraging "analytics and integrating it into their shopping experience so it feels more custom to creating relevant branded content, so that not every customer is getting the exact same thing, but you're getting something that matters to you."

Having started life in the e-commerce space before selling products in thousands of bricks-and-mortar stores – such as branches of Nordstrom and Target – the organisation can draw upon a broad slate of insights to further this agenda.

"It's really amazing, and it's complicated from a marketing perspective, to think about e-commerce, your lifetime value cost of acquisition and that type of thing at the same time as building a longer-term brand story for people shopping at retail," said Chris Thorne, The Honest Company's CMO.

Telling the brand's story has been further complicated by several court cases brought against The Honest Company with regard to the veracity of the safety claims made by some of its products.

Honest has challenged all of these accusations – and Thorne suggested they often emerge as special-interest groups seek to attract attention to their cause by exploiting the media spotlight surrounding Alba.

At the same time, however, the firm remains committed to addressing any worries expressed by consumers. "There's always something to be learned. Whether we should have been involved or not, that's important to us," Thorne said.

"We take all customer issues … very seriously. Our customer-service team is one thing we really pride ourselves on. We take more than 5,000 calls a day from customers, and try to address all of their needs and learn from them."

Data sourced from Warc