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Episode 5  |  11:06 min

Success with Honey with Princess Polly's Kim Zorn

Episode 5  |  11:06 min  |  09.03.2021

Success with Honey with Princess Polly's Kim Zorn

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This is a podcast episode titled, Success with Honey with Princess Polly's Kim Zorn. The summary for this episode is: <p>In today's episode, you'll hear a conversation between Neil Patel, retail industry expert, and Kim Zorn, Head of Performance at Princess Polly. They discuss the shift in customer behavior throughout the pandemic and what strategies came out of that shift. Kim also shares her approach to traditional discounting versus a rewards program. Listen now!</p>
Takeaway 1 | 01:03 MIN
Helpful strategies and the shift in customer behaviors - Throughout the pandemic
Takeaway 2 | 00:48 MIN
What channels to leverage to help drive brand and conversion with a target audience
Takeaway 3 | 01:01 MIN
How to approach traditional discounting vs reward programs
Takeaway 4 | 00:51 MIN
How Honey has contributed to reducing cart abandonment and increasing lifetime value

In today's episode, you'll hear a conversation between Neil Patel, retail industry expert, and Kim Zorn, Head of Performance at Princess Polly. They discuss the shift in customer behavior throughout the pandemic and what strategies came out of that shift. Kim also shares her approach to traditional discounting versus a rewards program. Listen now!

Guest Thumbnail
Neil Patel
Co-Founder, Neil Patel DigitalConnect with Neil
Guest Thumbnail
Kim Zorn
Head of Performance, Princess PollyConnect with Kim

Speaker 1: Hey everyone! In today's episode of the Honey Buzz CAS e- Commerce Industry Trends and Insights, retail industry expert, Neil Patel, chats with Kim Zorn at a performance at the wildly successful retail brand, Princess Polly, about the success the brand has realized as a result of working with Honey.

Neil Patel: Hey everyone! It's Neil Patel here. And today I have Kim with Princess Polly with me. A little bit of background on myself. I'm the co- founder of a digital agency called NP Digital. And I blog about marketing at neilpatel. com. Kim works at Princess Polly, and she's had an impressive career. She started at Red Bull and then from Red Bull, she went to UM Worldwide. From there, she went to Wavemaker and she's been at Princess Polly for a bit, and she's worked her way up all the way from, she started as a digital marketing coordinator, then got promoted into digital marketing lead, then a digital marketing manager, and then now she's a Head of Performance and she's done all of that in two years and nine months. Kim, welcome.

Kim Zorn: Thanks so much.

Neil Patel: So awesome. So I have a few questions for you. Our data shows that performance marketing strategies have really helped our merchant partners meet customers where they are and has helped them stay afloat during this unprecedented time. Especially with COVID, a lot of retailers have struggled. And what I'm curious to know is how about you? What strategies have you found to be helpful and addressing the shift in customer behaviors?

Kim Zorn: Yeah, first of all, thanks so much for having me. I'm really excited to be here. Yeah. We actually asked our customers what they needed from us in these unprecedented time. We did customer surveys, we listened to our customers, and we launched new initiatives. We wanted to be more than just an online store, wanted to be there for our customers. So one amazing new initiative that we launched during last year's lockdown, we launched PPTV, which was a live stream online, where we did cooking shows and yoga sessions and DIY workshops, live concerts, and yeah, try to be there for our customers. So that was an amazing new initiatives that customers loved from us. From a performance perspective, we tried out new channels, online video increase, and was consumed heavily during the last year. So we shifted budgets towards channels, like TikTok, Snapchats, connected TV and YouTube, from a performance perspective. And then we, from a CX perspective, we actually increased customer service hours to make sure customers can reach us any time and ask us questions.

Neil Patel: No, I love that, especially the one on how you adjusted your customer service hours so people can reach anytime, right? It's really going above and beyond and just putting your customers first.

Kim Zorn: Yeah.

Neil Patel: Another question I have for you is if you think about your ideal shopper, right, and when it comes to engaging with them, what channels are you leveraging to drive that brand and conversion with your target audience?

Kim Zorn: Yeah. Good question. We leverage a wide range of different channels to target customers during different stages of their buying journey. We use channels like paid social, where we include like paid TikTok, Instagram, Snapchat, Pinterest, Twitter, Reddit, and channels like paid search, YouTube, connected TV, and student networks to really drive brand engagement. And then we basically split it up. We also have influencer marketing that we use for brand and branding, like for connected TV, YouTube, and TikTok. And then we have our strong conversion channels, like affiliate marketing, paid search, and also surprisingly, SMS is going extremely well for us. Yeah. And then we have these different stages of acquisition, activation, and retention and use each of these channels within the purchasing funnel of the customer.

Neil Patel: So you mentioned a few channels, like affiliate marketing, influencer marketing. If you had to rank your top four performance marketing channels that drive engagements, and I'll give you a few options, affiliate marketing, social platforms out there, like the Instagrams and stuff, digital video site buys, or homepage takeovers, got programmatic buying, branded content, and influencers. If you had to pick and rank them, what would you say your top four performance channels are?

Kim Zorn: Our top four performance channels are definitely affiliate marketing, social platforms, influencers, and also content, and brand and content strategies.

Neil Patel: Yeah. I, too, always love affiliate marketing because the risk is the lowest, right? You're only paying if someone drives the sell, like the risk is very, very low compared to most other marketing channels out there when you think about affiliate marketing.

Kim Zorn: Yes, a 100%. We leverage affiliate marketing to go into new markets as well, because, like you said, it's a low risk because we obviously pay on a CPA model. So yeah. Affiliate marketing has helped us grow heaps in the US, and we're now going into the UK and Canada and affiliate marketing really helps us driving new customers over there.

Neil Patel: So how do you approach traditional discounting versus loyalty and rewards programs?

Kim Zorn: Great question. I think that's literally the question that we asked ourselves two years ago, because obviously, we have our traditional discounting, but we also struggled to reward people for being loyal to the brand. So we launched our larger rewards program in October 2020, and we're seeing a huge growth. And our loyalty program differs a lot from like our traditional discounting. We offer perks and rewards that you wouldn't really find in any traditional discounting programs that we currently have. Our rewards program offers up to 30% off,$ 25 birthday rewards, and other coupons like an Instagram feature draw where people can go into the draw to be chosen to be featured on our Instagram account, which I know our target audience loves this little giveaway. And then we have things like a$ 100 gift card draw, inaudible of sales, and early access to product launches. And all our loyalty program was really made to build a community and to get engaged with our customers and get to know them better, too.

Neil Patel: So going back to affiliate marketing for a little bit, how has Honey helps scale your affiliate program globally?

Kim Zorn: Honey is a huge partner for us globally and is a really strategic partner for us. We just actually came out of a meeting where we discussed our July numbers, and Honey was actually our top coupon code for new customer acquisition, especially in the US. So yeah, it's our top new customer driver out of all channels. For us, it's a checkout conversion tool. So it helps keeping customers on our page instead of going on the hunt for another discount code.

Neil Patel: Now diving a little bit more into Honey, what incremental value has Honey added to the Princess Polly affiliate program? And how has that positively impacted revenue? And I know you mentioned, it's been your best, pretty much, channel for new customer acquisition, but would love to hear a little bit more.

Kim Zorn: Yeah. So Honey for us is, I just said, a checkout conversion tool. So basically our target audience, Gen Z, they're discount code savvy. So they know they can get discount codes anytime. So with Honey, we actually keep the customers on the site and they go into the browser extension and the coupon codes apply and they can finish their purchase before heading off and purchasing from other brands because they might go and find a similar or a better offer for like another brand. So Honey helps our customers to stay on the page, finish their purchasing funnel, and helps closing the customer.

Neil Patel: Speaking of purchasing funnel, cart abandonment is a massive issue when it comes to e- commerce. People lose so much revenue from cart abandonment. And as you know, it's impossible to solve it a 100% because you're never going to have a 100% of your people always checking out. Nonetheless, how has Honey contributed to reducing your cart abandonment and increasing the lifetime value of your customer?

Kim Zorn: Yeah. That's similar to a story just now. We have customers, if you think of the purchasing funnel, they go and they go to checkout and we can't hide the discount code field. It is there. So they're going to see, and they just got to be reminded that they, at the moment, don't have a discount code. So they go looking at it, which leads to our cart abandonment because we lose the customer in a sea of discount code search results, where our competitors, obviously, are listed as well. So yeah, it helps first of all, to keeps the customer on the page, but what we see as well as, Honey customers come back to our page. We looked into a few Honey customer journeys and we can see they always purchased through Honey. So customers that come from Honey have a long and a high lifetime value for us as well.

Neil Patel: You provided a lot of insights and data, but is there anything else that you can share on the value of Princess Polly and the Honey relationship?

Kim Zorn: Yeah, we do have a long standing and amazing relationship with the Honey team, and we, not only partner through the traditional affiliate channel, we partner with Honey for different influencer campaigns. We had a really, really successful campaign last year with other inaudible, and yeah, I think one additional insight for us as well, Honey is one of our top partners and affiliate program. And yeah, we're looking to grow with Honey in different regions. Successfully rolled it out in the US and look into also building out that relationship in the UK and Canada and the rest of the world.

Neil Patel: Now, I think I know what you're going to say, but I still really want to ask this. What would you say to any brand that is considered working with Honey, but hasn't yet?

Kim Zorn: I would say missing out on converting customers. Like I said before, Gen Z is super discount savvy. They're at checkout and seeing the discount code field, they will hunt for a discount code online. You can't ignore the fact that they will hunt for discount codes and they might find a better deal. And I think one important thing that I haven't mentioned yet is with Honey, you can also control the discount code percentage, which means they will potentially find a higher discount code on the internet while at the moment, we offer a 10% always on code with Honey, which I know people might go and find a higher discount code percentage when they go and hunt for a discount codes. So in literally lets you control the customer journey, convert, and control the discount code percentage as well.

Neil Patel: Awesome. Thank you for your time, Kim.

Kim Zorn: No worries. Thanks for having me.

Speaker 1: Thanks for listening to this episode of the Honey Buzz CAS e- Commerce Industry Trends and Insights to learn more about how honey can help grow your business, reach out to honey- partner- support @ paypal. com, and be sure to follow us on Apple Music, Spotify, or wherever you listen to podcasts.

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