In this episode of the E-commerce Evolution Podcast, host Brett Curry sits down with with award-winning entrepreneur Leah Garcia (https://www.linkedin.com/in/leah-garcia-592988/), founder of Nulastin (https://nulastin.com/).
Leah has a remarkable journey building a beauty brand with shocking retention numbers—80% blended returning revenue and 65% subscription-based customers. From her bootstrapped beginnings (going from zero to $17.5M before hiring her first employee!) to developing bio-designed elastin products that deliver real results, Leah unpacks the strategies that have made her company a standout success even in uncertain economic times.
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Sponsored by OMG Commerce - go to (https://www.omgcommerce.com/contact) and request your FREE strategy session today!
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Chapters:
(00:00) Introducing Leah Garcia
(02:54) Nulastin’s Mission and Core Products
(07:19) How to Achieve High Retention Rates
(12:59) Removing Friction in the Shopping Experience
(19:33) Optimizing Subscription Models
(25:50) Knowing Your Customers & Fostering Connections
(30:50) Improvements to Reduce Churn
(37:08) Direct Response Marketing Insights
(41:42) Navigating Uncertainty in Business
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Connect With Brett:
Relevant Links:
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Past guests on eCommerce Evolution include Ezra Firestone, Steve Chou, Drew Sanocki, Jacques Spitzer, Jeremy Horowitz, Ryan Moran, Sean Frank, Andrew Youderian, Ryan McKenzie, Joseph Wilkins, Cody Wittick, Miki Agrawal, Justin Brooke, Nish Samantray, Kurt Elster, John Parkes, Chris Mercer, Rabah Rahil, Bear Handlon, Trevor Crump, Frederick Vallaeys, Preston Rutherford, Anthony Mink, Bill D’Allessandro, Bryan Porter and more
My superpowers. I make really, really
fast decisions when I make them.
Speaker:I give the person that I'm going into
business with or making a decision with my
Speaker:all and I don't keep one foot
on each side of the fence.
Speaker:Well, hello and welcome to another edition
of the E-Commerce Evolution podcast.
Speaker:I'm your host, Brett
Curry, CEO of OMG Commerce,
Speaker:and today I am delighted
to welcome to the show Leah
Speaker:Garcia. We met in Denver, Colorado.
Speaker:We both spoke at Ezra Firestones last
ever, the final, the grand finale,
Speaker:glue and Mastermind. Lee
and I both spoke there.
Speaker:I think you spoke right after me,
and so I was up close to the stage.
Speaker:I heard you talk and thought, man,
got to get you on the podcast.
Speaker:And so here we are today.
Speaker:But Leah is an award-winning entrepreneur.
Speaker:She won the EY winning Entrepreneur,
Speaker:female entrepreneur class of
: Speaker:We'll hear more about that as we go.
She's built a company called New Lastin,
Speaker:which is really has some
shocking retention numbers
that we're going to unpack
Speaker:and that you're going to learn from.
She's been involved with the rodeo,
Speaker:she's been on tv, she's sold on QVC.
She's done a little bit of everything.
Speaker:It turns out as we got to talking, we
know about a bunch of the same people,
Speaker:and so she's just an impressive
human and brings amazing energy.
Speaker:Although she did confess to me
this energy is going to be raw.
Speaker:It's going to be all Leah because she's
got no coffee right now, no caffeine.
Speaker:And so I love that you're willing
to do this podcast without caffeine.
Speaker:You're traveling, didn't have access
to coffee. So with that, Leah,
Speaker:welcome to the show and how you doing?
Speaker:Thank you.
Speaker:I tried to make my screen smaller
to see your face not so ginormous.
Speaker:And right now all I've got is
an exclamation point that says,
Speaker:thanks for joining, but
if you can still see me,
Speaker:I'm literally looking at a blank
screen right now, which is fine.
Speaker:Yeah, yeah, you look great. You
look great. So yeah, perfect.
Speaker:Perfect. This is more
like a Braille podcast,
Speaker:and I'm actually down with that because
oftentimes I sit around staring at
Speaker:myself in the mirror way too long.
So we're done with that. No coffee,
Speaker:no reflection, complete,
Speaker:just full on transparency.
Speaker:I love it. I love it. So
amazing. So let's start here,
Speaker:Lee,
Speaker:I want to get into some of your story as
we go because it's really fascinating.
Speaker:You've done a lot of amazing things, but
what is Elastin? Why did you start it?
Speaker:And then we're going to talk about some
shocking numbers you've been able to
Speaker:create in terms of subscriber percentages
and return customer percentages and
Speaker:LTV and some stuff that's really,
really valuable right now.
Speaker:But what is new lesson
and why did you start it?
Speaker:The journey really was personal
problem, resourceful resource,
Speaker:meaningful monetization.
Speaker:I had an issue that was going on
as I was aging and losing elastin
Speaker:and it manifest itself in
ways I was in television,
Speaker:but the wrinkles, the lack of
vitality, hair was thinning eyebrows.
Speaker:I over plucked, that was all on me.
Speaker:Things were happening in my body as I
started aging in this world of being front
Speaker:facing camera.
Speaker:And I was introduced to this very
powerful protein called elastin,
Speaker:and I met a microbiologist and I
had my aha moment where I realized
Speaker:that this was truly
Speaker:the miracle youth protein that
nobody else was really addressing.
Speaker:People were talking about
collagen but not about elastin.
Speaker:So elastin was for me that aha moment.
Speaker:And the company was founded on science.
Speaker:So bio designed an elastin
replenishment product for
Speaker:scalp hair, beautiful skin.
Speaker:And the thing that makes
it so novel is that it's
Speaker:one of the first bio designed proteins
that's identical to the human body,
Speaker:meaning that when you put
this product on topically,
Speaker:your body recognizes it as native so
it doesn't fight with it. And now they
Speaker:use fancy words like
biomimetic bioidentical,
Speaker:but your body loves these types of
proteins. It says, oh yeah, I make this,
Speaker:I produce this. I know what to do with
this so that I'm going to work for you.
Speaker:And it's probably one of the
most natural ways to continue
Speaker:getting the results that you're looking
for. So I fell in love with the science,
Speaker:even though I'm not a scientist,
Speaker:but that's how the whole business
started was I had a personal problem.
Speaker:I found this solution which was elastin.
Speaker:It wasn't being addressed in
the marketplace, and I thought,
Speaker:I can really change lives here.
Speaker:I can do something for women, especially.
Speaker:I started with women that
wouldn't just give them results,
Speaker:but that would give them so much
something bigger like their confidence,
Speaker:their identity, their sense of self,
and that's what we're doing at Elastin.
Speaker:That's fantastic. And so your
core products are hair lash, brow,
Speaker:correct.
Speaker:So talk a little bit about
your hero products and then
we're going to talk about
Speaker:your incredible results and
what we can learn from 'em.
Speaker:I started the company
with two hero products,
Speaker:which is lash and brow, and boy,
Speaker:timing is everything. So
we did have some skincare.
Speaker:I've been using the
skincare for about a decade,
Speaker:but it was a prototype formula and wasn't
really commercialized, but I used it.
Speaker:I've always been using science-based
skincare, wound healing,
Speaker:tissue regeneration. I've
never been an Avon girl.
Speaker:I've never used anything that was sort
of what you would at a department store.
Speaker:So I don't know if that's just because
of my professional athletic background.
Speaker:You're always playing around with what's
the newest nutritional supplement or
Speaker:what's the newest thing that you can
concoct so that you can go faster or climb
Speaker:higher and do all the things
that you want to do to win.
Speaker:So the lash in the brow serum
had demonstrable results
Speaker:within some people a
couple of weeks, six weeks,
Speaker:eight weeks by 12 weeks.
It was just mind boggling, the changes.
Speaker:And so we had these gorgeous
before and afters and
Speaker:that was a really fun
product to bring to market.
Speaker:But my dream was always to
be able to tackle the hair,
Speaker:but I just knew that that was to
try to get the same amount of active
Speaker:ingredients in a 50 mil container that
would give the same demonstrable results
Speaker:in an amount of time that wasn't going
to cost somebody their arm and a leg.
Speaker:That was the journey that took a
wee bit longer to get that really
Speaker:pinpointed so that we just didn't have
a $400 bottle that we were trying.
Speaker:To sell. Yeah, little bit difficult.
Speaker:Even if the results are great and
we all want to look youthful enough,
Speaker:vibrant hair and skin
and brows and lashes,
Speaker:hard to justify 400 bucks for a
bottle of shampoo. That's for short.
Speaker:So let's unpack something Leah,
Speaker:because there's a lot that's
impressive about you, by the way.
Speaker:You're an amazing presenter
on stage, you look great,
Speaker:you take fitness seriously.
You're aging gracefully.
Speaker:You got so many cool things going
on, but you shared this with me.
Speaker:You have 80% blended returning revenue,
Speaker:so 80% of your revenue is
blended returning customers,
Speaker:65% subscription based for customers.
Speaker:Your A OV is 90 in the 94th
percentile of your vertical,
Speaker:and then your LTV is off the charts.
We'll talk about that in a minute.
Speaker:But how have you done this?
Because I know this is by design.
Speaker:You said this was the goal from the
beginning. I know it's a great product,
Speaker:but how do you get to that 65% of
your revenues from subscriptions?
Speaker:80% is blend to returning
customers. How do you do it?
Speaker:Well, first of all, you better
have a product that works, right?
Speaker:And so now there's all
sorts of fancy words for it,
Speaker:but back in the day it was word
of mouth and the trajectory to
Speaker:getting a really nice return customer
isn't just putting in cancellation
Speaker:prevention, finding the right
tech stack, which is key.
Speaker:I think that if you break it
down into four categories,
Speaker:you're looking at discover,
Speaker:discover your customer pain points,
Speaker:that's going to be the first thing that
you need to do. Put skin in the game,
Speaker:literally something that is a personal
problem that you've lived through that
Speaker:you can then identify and that immediately
is going to give you a product that
Speaker:people are going to want and
to understand and can be the
Speaker:heartbeat of the formula.
Speaker:And then you want to make sure that you're
Speaker:identifying the things in your
business model that are the defeat,
Speaker:repeat moments, what's defeating them?
Is it a bad value proposition? Is
Speaker:it a shitty product which we don't have?
Speaker:And then the final one,
which I think is really,
Speaker:really key is do you have a
Speaker:gap?
Speaker:Is there a frustrating technical
experience for the customer?
Speaker:Because let's face it, nobody wants to
get to the finish line to buy something,
Speaker:to have tech breakdown or their
website not work or gosh dang it,
Speaker:I've already given you my
credit card five times.
Speaker:Why do I have to go
find that number again?
Speaker:There's these points that happen in a
customer journey that will just throw them
Speaker:off. They'll just, I'm done. I'm
done with you. That was frustrating.
Speaker:It wasn't fun, it wasn't pleasant.
Speaker:So these frustrating experience will
break down that repeat customer.
Speaker:And then the biggest one for us, honestly,
Speaker:we did really well up to, geez,
Speaker:last year because we had
such a great product,
Speaker:we cared so deeply about our customers,
we did nice things for our customers,
Speaker:but I still didn't have
the right tech partners,
Speaker:and that was really the missing link
for me getting up to this 80% and
Speaker:65% was finally plugging in the right tech
Speaker:partners.
And my tech stack isn't anything novel,
Speaker:but it just started working once I had
left hand and right hand talking to one
Speaker:another.
Speaker:Yeah, so it all starts
with product, right?
Speaker:We got to have a product that is amazing
that we want to keep ordering again and
Speaker:again. That's so good that we're telling
our friends about it, things like that.
Speaker:That's solving a real problem. We
got to then make the process easy.
Speaker:We've got to have good tech solutions.
There's a lot that goes into that.
Speaker:But what's interesting, and you
talked about solving a real problem,
Speaker:I want to give a quick shout out to Dean
Brennan. He was a guest on the podcast,
Speaker:CEO of Heart and Soil.
Speaker:These are meat based
supplements as a weird concept.
Speaker:I do plant-based supplements
in these supplements,
Speaker:but he tipped me off on this joint care
because as I've been aging, I work out,
Speaker:I run, I do things, joints hurt,
Speaker:and he tipped me off to this joint
care supplement. It's fantastic.
Speaker:I've never taken anything
like I don't ache at all.
Speaker:We went on a trip to Vegas just before
actually the Denver event where I spoke
Speaker:with you and a couple
of guys were with me.
Speaker:We were running on the pavement and they
were all complaining about being sore.
Speaker:And I'm like, I feel great. My
joints don't ache at all. Anyway,
Speaker:so that's a product where
I started taking that.
Speaker:I am not going to unsubscribe from that.
Speaker:That is going to become part of
my routine because I feel awesome.
Speaker:And so same is true for you though,
man, the skin is looking good,
Speaker:the brows looking good,
the hair's looking good.
Speaker:We're just going to keep buying.
So that makes a ton of sense.
Speaker:Talk this out. Lemme on to
what you just said because
Speaker:that is so key, right? So you have
a product, he tells you about it,
Speaker:you use it, it works, and then what
do you just do? You told me about it.
Speaker:Now I'm curious. And that's
what we're talking about.
Speaker:That's how you get that
sticky customer. It's no one.
Speaker:If I can get on that soapbox again,
and you've heard me get on my soapbox.
Speaker:If you've got a product because you just
want to make money because you want to
Speaker:sell, because you just want
to cut corners, do people,
Speaker:if you will, they might
buy maybe once or twice,
Speaker:but ultimately it's not
going to be the longevity.
Speaker:It's not going to be what's going to
serve them well in the long run because
Speaker:ultimately people don't want crap.
They want something that works.
Speaker:It's going to be grind.
Speaker:You're always going to have to be
hustling for that next sale where,
Speaker:whereas with you with your
product now 65% of your revenue
Speaker:comes in automatically
through subscriptions,
Speaker:and then another 15% comes in
through repeat customers anyway,
Speaker:so it's really awesome.
Speaker:Talk about some of the things you
did to remove friction from the
Speaker:shopping process to make
subscriptions easier.
Speaker:And you have any insights on,
Speaker:do you get first purchase take rate on
subscriptions or is it more like they try
Speaker:it once and then you're getting them on
subscriptions through email and SMS and
Speaker:remarketing campaigns? Talk
through some of the tactics there.
Speaker:First. Yeah. Okay. So
when I first started,
Speaker:I bootstrapped the company and my claim
to fame was that I went from zero to
Speaker:17 and a half million before
I hired my first employee.
Speaker:No way.
Speaker:Yes, that's the claim to fame.
That being said, I did have,
Speaker:excuse me,
Speaker:I did have an agency that I
had hired that really helped me
Speaker:with my digital marketing
and they helped me with my
Speaker:paid media marketing.
Speaker:So I wasn't able to really control.
Speaker:They had their things
they were working on.
Speaker:So I started with bold subscriptions
and Bold just did not work for me.
Speaker:We didn't have the right website
and the right theme and the right
Speaker:anything to manage that
subscription platform.
Speaker:And then we transferred.
Speaker:Once I started professionalizing and
bringing in employees and we're looking at
Speaker:like 20, 21 at this point,
Speaker:then I transferred over to another
subscription platform and that one didn't
Speaker:work out at all.
Speaker:They were very tech heavy and I still
didn't have the internal tech because I
Speaker:was bringing everything in house. So
it was just a mismatched relationship,
Speaker:just literally oil and vinegar.
And so then
Speaker:ultimately I got a cold call from
a recharge rep that said, Hey,
Speaker:Leah, so-and-so from Recharge and I
don't like cold calls, but I said,
Speaker:you've got five minutes to convince me
why I should switch to your platform.
Speaker:And then ultimately we arm wrestled
and negotiated a good contract,
Speaker:which is something that was very important
to me. And then I signed on and when
Speaker:I go, I go deep. I don't
wish my superpowers,
Speaker:I make really, really fast
decisions when I make them.
Speaker:I give the person that I'm going into
business with or making a decision with my
Speaker:all, and I don't keep one foot on
each side of the fence. It's amazing,
Speaker:a good
Partner.
Speaker:So they then introduced me
to a web development team
Speaker:that at first I didn't hire,
but I really liked them.
Speaker:And then eventually I realized that I
still didn't have left hand and right hand
Speaker:talking and that these teams
needed to all be working in Shopify
Speaker:Plus.
Speaker:So my basis for my tech
stack is literally absolute
Speaker:web recharge and Shopify Plus.
Speaker:And then from there you can build out
with the Klaviyo's and the postscripts and
Speaker:all the new things that come around.
Speaker:But because they all work
together collectively and kind of
Speaker:synergistically,
Speaker:that made my job easier
so that we could use the
Speaker:insights. And I'll tell you with
Recharge, constantly innovating,
Speaker:they came out with their
cancellation prevention,
Speaker:which was telling me I knew
my customers were overstocked,
Speaker:but I didn't know to what degree.
Speaker:So then when I find out that I'm
30% plus overstocked with customers,
Speaker:which is why they're churning, then
I can really do something about it.
Speaker:So then my web tech team got together
and we created a really bespoke,
Speaker:a really bespoke
Speaker:journey whereby now we changed
our subscription so that we
Speaker:open with a 10 week supply because
Elastin is a product that you need to use
Speaker:over time to see the results.
Speaker:Got.
Speaker:It. So instead of maybe them
picking haphazardly six weeks,
Speaker:despite the fact that we tell them
otherwise, then they get overstocked.
Speaker:Then we transfer from that 10
week supply to a five week supply,
Speaker:for example,
Speaker:so that they now have a manageable
cadence coming in with their
Speaker:subscription. And that
immediately turned things around.
Speaker:I mean that alone,
Speaker:we saw an uptick in our subscription
Speaker:take, and then we saw a decrease in churn.
Speaker:So churn can hover between eight to 10 ish
Speaker:percent, which me I'd
love churn to be about 2%.
Speaker:No doubt.
Speaker:I'm a dreamer.
Speaker:But the customers that were sticking
around then became stickier,
Speaker:if you will.
Speaker:And that's when that lifetime value for
our subscription customers could also
Speaker:be identified as a ridiculous number
Speaker:compared to non-subscribers.
Speaker:I think it's $146 for our,
Speaker:no, excuse me,
Speaker:$436 for our subscriber lifetime value
Speaker:compared to 186 for non-subscribers.
Speaker:Way.
Speaker:More than double.
Speaker:That's huge, right?
Speaker:It's huge.
Speaker:And then we do that smart
cancellation prevention,
Speaker:which then saves us an additional
7% of would be cancellations.
Speaker:And that's all done through automation
and thoughtful touch points.
Speaker:So something that we
just didn't have before,
Speaker:but I'll tell you the
biggest thing for me,
Speaker:the thing that really turned my business
is that our customer service team,
Speaker:which we have an in-house team of work
from home moms that are just amazing.
Speaker:It's amazing.
Speaker:We have always been one of the
top performing brands on gorgeous,
Speaker:the platform that we use for
cx, our tickets went down 50%,
Speaker:I'm pausing there.
Speaker:Tickets went down 50%
by having all of these
Speaker:optimizations, all of this website flow,
Speaker:this smarter website,
this smoother website,
Speaker:all of those friction points, once
they were removed, I'm saving money,
Speaker:I'm making more money, and
my customer service team,
Speaker:it has 50% fewer tickets,
happier customers,
Speaker:and we're not even paying that
higher platform anymore. On Gorg.
Speaker:We'd had to keep up in
our fee for our agreement
Speaker:because we were just so
much customer service,
Speaker:so much customer service. And
now that's being eliminated.
Speaker:It's amazing. So now you're cutting down,
Speaker:you're able to staff less or you're
saving on costs for answering tickets.
Speaker:But think about it from
the customer's perspective.
Speaker:Nobody wants to submit a ticket,
nobody wants to interact.
Speaker:Even if customer support is
delightful, it's a stay-at-home mom,
Speaker:and they're just a joy to talk
to. I still don't want to do it.
Speaker:And so if you can eliminate that,
it's even better. So part of that,
Speaker:so let's talk about why.
And I want to look at,
Speaker:you said something a minute ago was
really important. You said, Hey,
Speaker:people need to take this for
10 weeks to see the results.
Speaker:So that's what you started selling, right?
Speaker:So is that like a 10 week bundle or just
sign up and you get it for 10 weeks or.
Speaker:Two pack for example,
just a two pack of lash,
Speaker:two pack of brow or a two
pack of the hair treatment.
Speaker:And that's the vibrant scalp
treatment. So use it consistently,
Speaker:use it every day. You need to
Speaker:premix that fuel, if you will.
Speaker:You want to get those hyper results
in the beginning because if not,
Speaker:people will lose interest.
Speaker:It's already hard enough that I am not a
mascara where you put it on and you get
Speaker:longer lashes immediately.
Speaker:This is something that depending on
where you are naturally with your hair
Speaker:growth cycle, it takes a
while. Get those real results.
Speaker:So some people, depending on where
they're at with that growth journey,
Speaker:they may have results right away.
But for the most part, aging women,
Speaker:who is our demographic,
me, I am the demographic,
Speaker:we don't exactly respond.
Those young bucks do.
Speaker:So it takes us a little while to
get that diesel engine revved up
Speaker:and we just need to make sure that
people are using it and then they start
Speaker:seeing results. And that's when the
excitement sets in. And then when.
Speaker:You at that point, and then you.
Speaker:Go for Vegas with your buddies and your
knees don't ache, you're like, hello?
Speaker:Yeah, exactly. Tell me what you're
taking. Tell me what you're taking.
Speaker:Yeah,
I wrote a lot statement.
Speaker:So it's a two pack so they can use it
for 10 weeks, get the best results.
Speaker:So that's the first start.
The first piece says,
Speaker:what do they need to take
to get the best results,
Speaker:whether it's a physical product,
Speaker:something you're using or something
you're putting on ingestible, whatever.
Speaker:So what do they need to take to get
the best results? Let's sell them that.
Speaker:And then what did you do in
terms of messaging or just making
Speaker:it easier to understand and to say yes to?
Speaker:Talk to me about some
specific tactics there.
Speaker:The tactic, I think
that's the most important,
Speaker:just if we're talking D two C
and just brand building is I
Speaker:had a lot of fractional
copywriters for a while,
Speaker:so we didn't have a single voice,
Speaker:and then we hired a gal who is
leading our brand and our brand
Speaker:copy and her copy then hit that whole
Speaker:customer journey.
Speaker:So what we see on our macros from
customer service is what we see
Speaker:on the post-consumer flow
for our email marketing,
Speaker:it's what they're getting
when they're seeing
Speaker:the ad perhaps on meta or wherever
they first found out that top of the
Speaker:funnel perspective. So they're seeing,
Speaker:here's what they're seeing
in the top of the funnel,
Speaker:here's the middle of the funnel,
here's the bottom of the funnel,
Speaker:here's the email marketing campaign,
here's how it's flowing with the SMS,
Speaker:here's the information they're
getting from all angles. And it all
Speaker:sounds the same and it all makes sense.
Speaker:So you're not sending mixed
messages anymore. And before,
Speaker:I'm probably guilty of having sent
more mixed messages or just not
Speaker:having that through line,
Speaker:that continuity so that we're all
just really making sure that people
Speaker:understand what we're delivering
to the customers. And it's a serum.
Speaker:I'm at my temporary desk
here, but for example, here's,
Speaker:here's a sample of the
vibrate scalp treatment,
Speaker:the lash and the brow
that's in just a single box.
Speaker:This was one of our promo boxes that
we put together. So they're all serums.
Speaker:You use 'em twice daily, once
in the morning, once at night,
Speaker:and people will inadvertently say, oh,
Speaker:so I need to keep using that product,
and if I stop using it, it stops working.
Speaker:And the answer is yes. If you stop
drinking water, you get dehydrated. Of.
Speaker:Course, yeah.
Speaker:If you stop eating food,
you get hungry. If you stop,
Speaker:I want to vitamin I can take.
Speaker:That's.
Speaker:It. Things change. But it's
still that age old question.
Speaker:And that comes from, I kid you not,
Speaker:that comes from old school
mentality before people really got a
Speaker:little bit smarter to realize that
consistency is what delivers results in
Speaker:everything. If you want
to stay fit, stay fit.
Speaker:You, I've got to keep working out. I've
got to keep sleeping well every night.
Speaker:Come on, that's want to
do it once, it's so good.
Speaker:But it's not necessarily even
a nice to have once you start
Speaker:fighting back mother
nature, it's a must have.
Speaker:And this is where that longevity game
comes in there because what we're doing to
Speaker:biohack our bodies and our
health and our wellbeing
Speaker:is really the rage right now. And
I've been biohacking since day one.
Speaker:I think the biggest thing I
did to biohack was not have.
Speaker:Children. I'm sure I've never.
Speaker:Said that out loud before.
Speaker:New biohack don't have kids.
Speaker:Turns out that's also a great
savings plan. Yeah, yeah, yeah.
Speaker:I know a lot of parents that get pretty
dang stressed right now in this world.
Speaker:There's enough stress going on.
Speaker:So I always laugh that my husband and I
are able to just pick up and go whenever
Speaker:we want. We've got all this freedom.
And I could also focus on the business.
Speaker:So truthfully,
Speaker:my business is those are my children, my.
Speaker:Members.
Speaker:That's who I care about right.
Speaker:Now. I love that. I love
that. My wife and I,
Speaker:we can get up and travel
anytime we want to as well.
Speaker:We just have eight kids that
we have to tow around with us.
Speaker:Actually they don't all live
at home. So it's not eight,
Speaker:it's only like five or
six. It's no big deal. But.
Speaker:That to me,
Speaker:I think that single voice to the
question going back to What are the
Speaker:mechanics, what can you do right now?
Speaker:What are the actionable items that
some of the individuals listening to
Speaker:can take and take from this?
Speaker:And you talked about that
ability for us to get on the
Speaker:phone.
Speaker:And something that I always say flies
in the face of what we've been taught is
Speaker:to really know your customer.
Speaker:So we do have a lot of
older women who have felt
Speaker:unseen and unheard and
undervalued in their lives.
Speaker:And so our customer service team is
empowered to spend however extra time they
Speaker:need on the phone with those
individuals until that individual
Speaker:feels like they've gotten what they need.
Speaker:And sometimes they can be on
the phone for a long time,
Speaker:which is why our gorgeous score
has probably gone from a 4.8
Speaker:and not to a five. I mean,
Speaker:we're still at 94.8% of
all gorgeous platforms.
Speaker:That's that 5% stat.
Speaker:But we stay where we're
at because one of the
Speaker:metrics that's timed on gorg is
how quickly do you answer those
Speaker:questions for people? And sometimes we
just don't answer them that quickly.
Speaker:We'll respond quickly,
but then we take our time.
Speaker:Take your time. But yeah,
Speaker:and it's more about optimizing for
satisfaction than it is to hitting some
Speaker:metrics that may indicate
satisfaction, but not always.
Speaker:And so I love the way you guys do that.
This idea of consistent communication,
Speaker:I've heard it's called the
golden thread or consistency.
Speaker:So every message we share, whether it's
a video with static image, it's on med,
Speaker:it's on YouTube, it's on Google,
it's an email, it's an SMS,
Speaker:it's all saying the same
thing. It's reinforcing,
Speaker:maybe we're hitting the same message
from a couple of different angles,
Speaker:but ultimately it's the same
thing when you get on the lander.
Speaker:Also the same message.
Speaker:Simplification and clarity
are super important.
Speaker:Sometimes we overcomplicate things
and a confused customer does not
Speaker:buy. So what are some of the messages,
Speaker:the go-to messages or what are you trying
to communicate when you're creating
Speaker:this consistency across all.
Speaker:Channels?
Speaker:We fall back always on our pillars
at elastin. So real science,
Speaker:real results, real people
and real responsibility.
Speaker:But that's the pillar.
Speaker:And then from the pillar then you
identify what is the pain point for the
Speaker:customer. And it really always
boils down to their sense of self,
Speaker:their confidence, their sense of identity,
Speaker:their desire to be the best version of
Speaker:themselves. So I'm going to go
back to what you said. You said,
Speaker:I started taking this supplement,
I feel so much better.
Speaker:I'm not hurting anymore. I wake
up, maybe you don't need coffee.
Speaker:And all of a sudden
now you didn't say, oh,
Speaker:I like where they source their product.
Speaker:They did a really good job of where
they sourced and they're environmentally
Speaker:friendly and they've done all
these things. Well, that's a given.
Speaker:Now you need to have all of that.
Speaker:You can't come into a beauty brand
right now if you're not sustainable,
Speaker:if you are not taking care of
vegan and cruelty-free and no
Speaker:preservatives and all of the lists. So
we call those our safe science standards,
Speaker:but you can't lead with that
because nobody buys a product.
Speaker:Nobody buys a product because it's got
the best biodesign proteins and the most
Speaker:peptides.
Speaker:For sure.
Speaker:That doesn't sell. What sells is,
does it do what they want it to do.
Speaker:So the message has to always be about
what the customer needs and what
Speaker:that pain point is that we're solving
or what that aspiration is that they're
Speaker:looking to gain. And then ultimately,
Speaker:if we don't deliver the
product that really works,
Speaker:they're never going to come back again.
Speaker:But the other flip side is
because of where people are,
Speaker:whether they've got thyroid
Speaker:post-treatment, post stress,
aging, loss of elastin,
Speaker:naturally too much sun, exposure,
exposure, environmental,
Speaker:stressing out about what's happening in
our political and our culture right now,
Speaker:all of these things are causing
people to lose their hair.
Speaker:And we saw this during Covid as well.
Speaker:So what we also have to do at
Neulasta is we have to look at how we
Speaker:can kind of bundle that and make
sure that we're still giving the
Speaker:customer the time they
need to get the results.
Speaker:So if 12 weeks isn't enough,
Speaker:I'm going to take care of them and give
them more product so that they get the
Speaker:results they're asking for. And whether
I do that sometimes with free product,
Speaker:sometimes with a deeper discount, but
if they call me, I will literally say,
Speaker:you didn't start this journey because
you were just trying something.
Speaker:You want something.
Speaker:So I'm going to give that to you for
as long as it takes till you get that
Speaker:result.
Speaker:That's so good. That's so good.
Speaker:Talk to me about the
process of reducing churn.
Speaker:You talked about some
of the programs you run.
Speaker:If someone's about to cancel their
subscription, how do you mitigate that?
Speaker:What are some of the
strategies that you've used?
Speaker:Most recently, it's
going to go back to just
Speaker:that very,
Speaker:very powerful buy box that
people are seeing so that the web
Speaker:functionality, I believe I mentioned
this, smoother, faster, smarter,
Speaker:but that buy box, which is the small
powerful decision point, right?
Speaker:That's transformed so
that it now has above
Speaker:the fold because before
it wasn't above the fold,
Speaker:but it's a smarter way of
customers to get the right
Speaker:cadence with the right
subscription that they needed.
Speaker:And then as they go through
the checkout process,
Speaker:not too many more decisions to make,
Speaker:but then there are some upsells
and there are some cross sells,
Speaker:but mainly trying to serve the
customer with a very smart flow
Speaker:so that they don't have to
get confused or question it.
Speaker:So the result of that alone
with that buy box and the web
Speaker:functionality was a 13.4%
increase in conversion rate.
Speaker:So we immediately started getting that.
Speaker:And then the next part of
it is just continuing to
Speaker:innovate when we see
something that's not working.
Speaker:We work with the web partner now
and we try to innovate and solve
Speaker:around the entire customer journey and
anticipate their needs so that we can
Speaker:exceed those expectations.
Speaker:Yeah, it's so good. I'm looking
at your detail page now,
Speaker:and we'll put this in the video
version. If someone's on YouTube,
Speaker:they can see it. But I love
the way this is laid out.
Speaker:So the top section you automatically
selected subscribe and save 25%.
Speaker:You got three different options,
deliver every eight weeks.
Speaker:In the middle it says deliver 10 weeks,
Speaker:it's got a check mark and it's bolded
and it says recommended right under it.
Speaker:And then or deliver every 12 weeks. And
it says free shipping, cancel any time,
Speaker:full flexibility, try really compelling,
Speaker:and then it's got the strikethrough price
and the price that you'll pay saving
Speaker:25%. And then below that you
could choose a one-time purchase.
Speaker:You save 12% that way. What is,
Speaker:so you talked about 65% of
your revenue is subscriptions.
Speaker:What's the take rate on subscriptions
when someone's checking out with these
Speaker:products?
Speaker:I don't have that answer
off the top of my head.
Speaker:It's got to be a pretty high,
Speaker:it's got to be a high take rate since
everything else is off the charts as well.
Speaker:Being the owner of the
company and the founder,
Speaker:I always get just a little bit
puckered up there because you still
Speaker:have people who want that big deep
discount and they're playing the game.
Speaker:So you're always going to get
the people who are like, oh,
Speaker:I can get free shipping. Oh, I
can get this really deep discount,
Speaker:possibly almost 30% on my first order.
Speaker:And they have absolutely no
intention. They're playing the field.
Speaker:They might be doing the stance
with a lot of other companies,
Speaker:but ideally if they've purchased
two products from us or the Tupac,
Speaker:then they are going to see results.
Speaker:And they might have a aha
moment themselves where they
stick around for a little
Speaker:bit longer. But
Speaker:it is high,
Speaker:and we're working on it because we
actually didn't have as robust of
Speaker:a landing page funnel as we do now.
Speaker:It's still not the Ezra Firestone funnel,
Speaker:but that is something that we're working
on so that we have the capacity now
Speaker:to build out more landing pages
so that it makes it easy for that
Speaker:first take rate. I want to
say 80%, but I might be wrong,
Speaker:so don't quote me and hold
me to that particular number.
Speaker:With every other number being off the
charts, the take rate's got to be really,
Speaker:really healthy as well.
Speaker:And so can you talk about the landing
page work that you guys are doing?
Speaker:Is that tying specific
offer to specific ad
Speaker:and what are you doing and any
interesting learnings with that journey?
Speaker:Yes, better. It's still not set up.
Speaker:I've seen so many great landing pages
that I start falling in love with,
Speaker:but if they're seeing an ad for,
Speaker:with a particular human being being
featured in an age category and an
Speaker:offer for lash,
Speaker:and then they come over to a PDP
page as a checkout page versus going
Speaker:to a landing page where then we continue
selling them on that journey where then
Speaker:we get that buy box that really
speaks to what they're after,
Speaker:because at that point, they
don't want to mess around.
Speaker:They just want to get in there.
I'm like, yeah, that's what I want.
Speaker:That's what I want to buy.
Speaker:So you want to make sure that
you're not confusing them.
Speaker:And that's what we've been trying to do
is follow that journey from what ad they
Speaker:saw on meta, for example,
Speaker:to where they land and get that checkout.
Speaker:And it's the landing page strategy
is by far the best performer,
Speaker:but we also find that our PDP pages are
equally as good. And back in the day,
Speaker:we were sort of, and we would just go
to the homepage and that was a disaster.
Speaker:I mean, it works a little bit, but it's
just, it's too much. It's like too much.
Speaker:Nobody wants to.
Speaker:Yeah, you're introducing too
many options in most cases.
Speaker:But I will say, yeah, your PDP, which
is what I just showed a second ago,
Speaker:it's fantastic. And.
Speaker:That's only the landing page.
Speaker:So I can send you links to
get to the landing pages,
Speaker:which are those mysterious pages that
unless you're following a particular link,
Speaker:you'll never find again. I was laughing
about that the other day. I'm like,
Speaker:geez, even I own the company and
sometimes if I can't find my landing page,
Speaker:I'm like, what's that foreign slash,
Speaker:where did we go and how do you get back
to it again? So funny, once I lose it,
Speaker:man, I can't find it again.
Speaker:And that's an old anchor trick that I
learned from back in the day of direct
Speaker:response infomercial is they
were just classic landing
Speaker:page.
Speaker:Marketers.
Speaker:It was just.
Speaker:Guthy Riner legends, legends in the game.
Speaker:And so what did you do with them again?
Speaker:Was that one of your products
or you worked with Guthy Riner?
Speaker:No, but I was in the infomercial world,
Speaker:so that's kind of where I cut my teeth
with direct response marketing is I
Speaker:started in the direct response.
Speaker:I was selling on HSNA particular AB belt,
Speaker:and then I helped launch the
contour core sculpting system,
Speaker:and that's a product that was in 2008,
Speaker:one of the most successful
shows of its time.
Speaker:And we went from zero to 220 million
Speaker:in about three years,
Speaker:and we had a seven to one media
Speaker:marketing efficiency ratio.
Speaker:So.
Speaker:Seven to one.
Speaker:A seven mer. Everyone listing is like.
Speaker:Come, we're back in the day,
Speaker:the Anthony Sullivans
and the Cindy Crawfords,
Speaker:but we were watching them, they were
watching us. We were all competing.
Speaker:But it was back,
Speaker:it was in the good old days
where crepe erase was rocking.
Speaker:And I mean, I am old,
Speaker:so I remember the Suzanne Summer's in.
Speaker:I remember watching the ThighMaster.
Speaker:X.
Speaker:90 XI bought because of P 90 X. Yeah,
Speaker:actually friends that ran
the erase campaigns and.
Speaker:Stuff. But I always ask, do we reflect,
Speaker:and this is something I said in one of
my presentations recently is do we ever
Speaker:reflect on that is really where we learned
the formula for our direct response
Speaker:marketing. And they had three segments,
Speaker:28 minute show compelling
problem solution,
Speaker:and H one had a call to action. So if
you're jumping in somewhere in between,
Speaker:it's here's how we're going to
save you time, money, energy,
Speaker:get you what you're looking for. Here's
your call to action. If you order now,
Speaker:you're going to get this, this, this,
and this. But wait, there's more.
Speaker:And all that stuff worked. And
you know what? It still kind of.
Speaker:Works. It still works. Maybe you're
executing it a little bit differently.
Speaker:But the psychology there,
the problem solution,
Speaker:the presenting it in a compelling way
and an engaging way with high energy,
Speaker:it still works. And that's something
you and I were talking about.
Speaker:I'm a huge YouTube guy.
Speaker:We are seeing a lot of people that
have been historical TV advertisers now
Speaker:trying YouTubes. We're leaning into that.
Speaker:Love.
Speaker:It. But I'm also seeing
some D two C brands,
Speaker:brands that are born online that
are now leaning into connected tv,
Speaker:whether that's through
YouTube or other platform,
Speaker:and they're dabbling in TV advertising,
but it's direct response style,
Speaker:TV advertising,
Speaker:getting someone to take an action to
visit a site to get a free download or to
Speaker:free trial, whatever.
Speaker:Just works. I think we need to be more
clever and I need to meet more of a brand
Speaker:recognition. I tried some,
Speaker:our mutual colleague Stacy
helped me try to buy some linear
Speaker:TV spots. It just didn't work for us,
Speaker:but we didn't do enough. It
wasn't long enough, deep enough.
Speaker:But elastin as big of a
brand as I think we are,
Speaker:we're still not a name brand.
Speaker:So you can walk down the street and people
aren't going to really recognize us.
Speaker:So we're staying somewhat niche
in that. We have, I believe,
Speaker:the best science in the industry,
Speaker:and I would challenge anyone to match our
38 US and international patents all in
Speaker:the elastin space.
Speaker:It's.
Speaker:Amazing.
Speaker:We've got a category that no one else
is really focusing on to our depth
Speaker:and breadth. But at the end of the
day, again, science isn't selling.
Speaker:So now I've got to be able to just
communicate to people that we have a
Speaker:beautiful product with a founder
and an entire team that cares
Speaker:deeply for that customer journey and
that we're going to do everything in our
Speaker:power to get them the results that
they want. And they can also trust.
Speaker:I think small brands,
Speaker:one of the beauties is that they can
trust the integrity that goes behind it
Speaker:and that what we say is what we do.
Speaker:Sometimes when you get that
thought of a big brand,
Speaker:you kind of wonder did they lose it?
Speaker:So if JJ buys a business and all of
a sudden you see it on the shelf at a
Speaker:target, then old school
people would think, oh,
Speaker:they must have done something different.
Speaker:Now it's lost its allure or it
doesn't have the same formula.
Speaker:And maybe they're right.
Speaker:Maybe people take a formula,
Speaker:they buy a company and then they fairy
dust the active ingredients and it might
Speaker:not have the same punch that happens.
Speaker:Right? Right. Yeah. I think
your passion rings true.
Speaker:Listening to you talk and if someone
can see you or hear you talk in an ad,
Speaker:it's clear you're going to do whatever
is necessary for someone to get the
Speaker:results that they want, which is
great. I want to kind of end on this.
Speaker:We only have a few minutes left,
Speaker:but times are uncertain right
now at the time we're recording,
Speaker:we're dealing with some
tariff, chaos and madness.
Speaker:Consumer confidence is at a low.
Business owners are worried.
Speaker:We work almost exclusively
with D two c e-commerce brands.
Speaker:Many of our clients
don't import from China,
Speaker:and so they're feeling a little
bit better than those that do,
Speaker:but there's still just
uncertainty everywhere.
Speaker:So what advice do you have and
what are you leaning into now when
Speaker:times are uncertain?
How are you operating?
Speaker:I have been guilty of falling
into a trap of feeling
Speaker:the scarcity mentality and the panic,
Speaker:but I am doing everything that I can to
try to come from a point of abundance,
Speaker:and that might be a little too
metaphysical for this podcast,
Speaker:but I literally need to stay true to
Speaker:what we do over here. We need to
make money to stay in business,
Speaker:but do I need to make a 94% contribution
Speaker:margin every day, all day? Probably not.
Speaker:I need to take a hit
with everybody going in,
Speaker:and I'm willing to do that so that I
don't have to put it on my customers.
Speaker:During covid, when people were upping
their prices, I stayed the same.
Speaker:As a matter of fact,
just earlier this year,
Speaker:first time I increased
my prices since: Speaker:I am going to do everything
I can to get clever to
Speaker:figure out how to,
Speaker:I only get packaging from China,
only my primary packaging. So that's
Speaker:the stuff that you see, like this.
Speaker:Packaging.
Speaker:And I get a few, and it's not pretty.
Speaker:You don't want to pay something that might
cost you 60 cents and all of a sudden
Speaker:have to pay $2 for it
depending on where you're at.
Speaker:I've got a product right now on the water
that was a little scalp scrubber that
Speaker:I got from China, and it
was a 50 cent product.
Speaker:And right now we don't know
because when it went on,
Speaker:it was before the tax went up to 148%.
Speaker:And at the end of the day, if I have to
pay the tax, what going to do? Say, no,
Speaker:I'm going to send it back. That's
one option. It is an option.
Speaker:My CFO said,
Speaker:you need to deny shipments coming over
right now so that you don't have to pay
Speaker:$26,000 in taxes that you don't
know where it's going. And I agree.
Speaker:And then tomorrow they could
change it and I could end up paying
Speaker:$12,000 in taxes versus a 46 versus
a hundred thousand dollars in
Speaker:taxes. So it's huge. I mean, it's
going to cut into profit margins,
Speaker:but my hope is that smarter
brains will prevail.
Speaker:That somebody will at some point talk
to the government and talk to somebody.
Speaker:And there's got to be,
Speaker:if enough of us come together
without being hysterical and
Speaker:we have those smart conversations,
Speaker:we have to reach a point
where there's stability.
Speaker:And I will do everything
I can to join that
Speaker:movement if it happens.
Speaker:But otherwise I am just not going to
bring stuff over. That's a nice to have.
Speaker:It's got to be a must have.
Speaker:Totally. Yeah.
Speaker:And I think it's a really good take
where a couple things to keep in mind,
Speaker:and you talked about mindset. I think
that is underrated in some ways where yes,
Speaker:we get tactical on this podcast.
Speaker:We want to look at how can we increase
our subscription take rate and how can we
Speaker:reduce churn and things like
that. But your mindset matters,
Speaker:and if you are overly stressed
or panicking, you're going
to make bad decisions.
Speaker:You're going to craft bad marketing,
it's just not going to work well for you.
Speaker:So work on the mindset. It will
only make everything else better.
Speaker:But I always believe there's
always a move to make.
Speaker:There's always something you can do and
every other one of your competitors is
Speaker:dealing with the same
stuff you are dealing with.
Speaker:So if you can be more scrappy,
more resourceful, more crafty,
Speaker:you can find edges.
Speaker:And it's like there are always
opportunities in crazy times like this.
Speaker:I do believe there'll be adjustments
made with tariffs and stuff.
Speaker:Who knows what that will be or
when or what direction it'll be.
Speaker:But I think you're smart. How can we
limit what we're bringing over right now?
Speaker:I'm hearing that from a
lot of different customers.
Speaker:How can we just bring over the essentials.
Speaker:Or how do we work together?
Speaker:So let's say there's five of us in the
beauty industry that have a similar
Speaker:product that might be coming.
Speaker:Why not set up another manufacturing
or another warehouse, for example,
Speaker:somewhere without taxes? Share the cost
on that, bring product over. I mean,
Speaker:this is a time where we need to
kumbaya and lean in with one another.
Speaker:There's ways around this. Even if it
doesn't change, I'm hoping it changes,
Speaker:but if it doesn't change, let's
not panic. Let's collaborate.
Speaker:Let's work together. Let's figure it out.
Speaker:Yeah. Yeah. I love that. I
love that so much. And yeah,
Speaker:there will be winners during
this season. No doubt.
Speaker:It's just not easy and not overly
fun, but it's where we are.
Speaker:And so got to focus on solutions. Leah,
Speaker:this has been absolutely
fantastic. I love your brand.
Speaker:I love the energy you bring.
I love what you're building,
Speaker:and we need to catch up again soon
sometime. So thanks for coming on.
Speaker:Thank you very much. We didn't
even talk about bull riding,
Speaker:but we'll get to that later.
Speaker:Bull riding next time. So I
will end with this though.
Speaker:People have to follow you on social.
So you're a great follow on LinkedIn,
Speaker:but you're also active on
Instagram and other channels.
Speaker:Yes, yes. I'm still old
school, Leah Garcia TV Act.
Speaker:Elastin is where the brand is found, but
Speaker:I am more on the speaking
circuit these days.
Speaker:So LinkedIn is probably one of the
best places to find my whereabouts.
Speaker:And you got some great content recently
about those speaking engagements,
Speaker:so check it out. Leah Garcia on
LinkedIn and Instagram. Leah,
Speaker:thank you so much. This has been an
absolute pleasure and we'll chat soon.
Speaker:I'm stoked. Thank you so much. Cheers.
Speaker:Awesome. As always,
thank you for tuning in.
Speaker:Would love to hear feedback
from you. If you've not left us,
Speaker:that review on iTunes means
the world to us. And with that,
Speaker:until next time, thank you for listening.