Challenge The Mighty Wallet has great first-time buyer sales, however lacks returning customers.The life of the Mighty Wallet product is short compared to the other wallets.
Solution The Mighty Wallet company believes that the main benefit of the mighty wallet is in the eco-friendly feature, but in fact, based on our research and consumer insights,only 2% of Mighty Wallet users are ecofriendly-focused. 98% of the users bought the Mighty Wallet because they love the wallet’s design and functionality of the Tyvek material. This said, aiming to focus advertising on the ecofriendly feature is not effective or lucrative. Exploring how the target consumer behaves helped us understand the decision-making and purchase process of a new wallet. For 80% of the people we studied, the first trigger was of hedonic value and emotional involvement, in this case: the design of the wallet. Most of the consumers choose wallets because they look good rather than their functionality/structure. Most of the users that had owned a Mighty Wallet in the past, have been in the situation when a stranger or the person behind the register at a store compliments them about the wallet, increasing the hedonic value of the wallet for the user.
On the other hand, we found out that consumers were frustrated with the durability of the wallet- it is extremely short compared to regular fabric or leather wallets. The mighty wallet lasts about 3-4 months before it loses its shape, begins to get dirty and its color starts fading. Consumers describe it as "looking like an old piece of paper." As a result, of the 80% of consumers studied, only 50% purchased a Mighty Wallet a second time, and only 5% a third time. The important factor in this situation, however, is the price point. A consumer spends $15 dollars on a Mighty Wallet, compared to $50-$100 for a regular wallet. So how do we keep the hedonistic need for the Mighty Wallet at a 100% in spite of the product's short life-span? "I can’t replace replace my leather wallet every 3 months- it's way too expensive. But could I do it with my mighty wallet?" This habit is not in the consumers mind, but could be the solution to the problem.
We need to shift the perspective of the consumer and create this new need. Instead of expending $100 on a regular wallet, they could have ten Mighty Wallets, each with a unique design, much more likely to appeal to their personal interests and visual aesthetic.
Based on these observations, I developed a strategy for Mighty Wallet that comes in the form of a monthly subscription. The consumer pays $10 every month in the same way one pays for a Netflix account or magazine subscription. The membership gets the consumer a brand new Mighty Wallet from a semester collection every month. This offer creates expectation in the mind of the Mighty Wallet’s consumer, while triggering a new trend on a larger scale.
Testing After testing the strategy, 87% of Mighty Wallet consumers would subscribe for 6 months. As a result: The effectiveness per wallet increased by 90%.
Target Audience Gender: Male and Female, Ages 15-26 Occupation: Students and Young Professionals Need state: Esteem, To be on Trend