THG Ingenuity partnered with No.7 - a beauty and skincare brand developed by leading UK retailer, Boots - in September 2019 to support their US launch and growth in the UK. This case study details the successful strategies implemented to drive revenue growth, increase customer engagement, and optimize marketing channels across both regions. 

The challenges

As a highly established UK beauty brand, launched in Boots in 1935, No.7 has spent decades evolving with consumer demands and competitor growth and the challenges these bring. When partnering with THG Ingenuity, the brand sought to address some specific challenges to unlock further opportunities for growth: 
 

• Establishing No.7 in the competitive US market: No.7 was a well-known brand in the UK, but a newcomer to the competitive US beauty market. Standing out from established players and building brand awareness was crucial for success. 
   
• Maintaining growth in the established UK market: The UK market was already familiar with No.7, but maintaining growth required strategic optimization of existing channels and customer acquisition strategies. 
   
• Optimizing marketing channels for maximum return on investment (ROI): Gaining and maintaining profitable momentum was a critical ingredient to No.7’s success, with balancing investment across various marketing channels to maximize return on investment being a key challenge. 

The solutions

To address these challenges, THG Ingenuity worked with No.7 to implement a strategic mix of tactics for both the US and UK markets. Here’s a breakdown of our approach. 

Launching a new brand in the US market

Though a known brand in the UK, the US market’s lack of awareness of No.7 meant launching the brand as new in the market. THG Ingenuity helped achieved this by employing a strategy focused on: 
 

• Streamlined marketing: A managed service model ensured all channels – affiliates, CRM, and organic SEO – worked together seamlessly. 
• Data-driven targeting: Leveraging data, they maximized impact during key sales periods (e.g., Super Bowl, 4th of July). 
• Targeted promotions: BOGOF (Buy One Get One Free) promotions encouraged specific customer segments to purchase. 
• Brand awareness and customer acquisition: Strategies aimed to build brand recognition and attract new customers. 

Succeeding with affiliate marketing in the US

Leveraging the power of networks and communities, THG Ingenuity's affiliate marketing strategy in the US proved highly successful, achieving: 
 

• Cost-effectiveness: A 25% cost of sale (COS) demonstrated efficient campaign management. 
• High Return on Investment (ROI): A 405% return on ad spend (ROAS) showcased the program's profitability. 
• Optimized performance: Partner selection and offer tailoring led to increased AOV and CVR. 
• Diverse reach: Collaborating with a variety of publishers (cashback, voucher) expanded No.7’s reach. 

Turning CRM into a top-performing channel in the US 
 
Capturing and keeping a new customer base in the US meant a keen focus on the brand’s loyalty program, with CRM being strategically employed to promote and deliver:  
 

• Best-in-class loyalty: A well-structured program with tiered promotions encouraged repeat buyers. 
• Engaged customer base: Efforts aimed at growing a loyal customer base that actively participated in the program. 
• Hybrid loyalty launch: This upcoming initiative promised to further enhance customer engagement with additional rewards. 

Ongoing optimizing of an established brand in the UK 
 
No.7 was already a household name in the UK, but maintaining momentum in a mature market required a different approach. THG Ingenuity provided support to help No.7 continue thriving: 
 

• Self-serve ecommerce: No.7 maintained control of core operations, demonstrating their deep understanding of the UK market. THG Ingenuity complemented their expertise by offering targeted assistance in specific areas. This ensured a collaborative and efficient approach. 

The results

This collaborative, multi-faceted approach by No.7 and THG Ingenuity resulted in some significant results for the beauty brand: 
 

• +36% growth in AOV from 2021 to 2023 enabled by affiliates, showing that strategic partnerships with the right publishers can encourage customers to spend more per purchase. 
• 39% of total new customers driven by affiliates in 2023, demonstrating the effectiveness of the program in attracting new audiences to the No.7 brand. 
• +45% growth in CVR YoY (overall performance), indicating a significant improvement in efficiency of converting website traffic into sales 
• +15% growth in orders YoY (overall performance), highlighting the success of the strategies in driving overall sales growth. 
• 32% of total revenue driven in 2023 was through CRM (loyalty-specific), exceeding annual targets by +17%. This demonstrates the effectiveness of the loyalty program in fostering customer engagement and driving repeat purchases. 

Looking forward

To ensure continued success, No.7 and THG Ingenuity have set ambitious goals for the future:

1. US Market: Expanding reach and acquisition 
 

• Focus on acquiring new customers: Since brand awareness is now established, No.7 and THG Ingenuity will prioritize attracting new customers. Strategies might include lead generation campaigns (social media competitions, downloadable content) and product bundling to incentivize larger purchases. 
   
• Increase upper funnel activity: Driving more traffic to the top of the sales funnel (e.g., through SEO optimization and content marketing) will increase brand visibility and attract potential customers at the earlier awareness and consideration stages.  

 
2. Affiliate Marketing: Building on success with diversification 
 

• Projected 25% revenue growth in 2024: Building on the affiliate’s program impressive track record, a projected 25% revenue increase in 2024 signifies continued confidence in this channel’s effectiveness.  
   
• Increase diversification within the publisher mix: Expanding partnerships beyond current affiliates (e.g., cashback and vouchers) to include editorial and loyalty publishers will broaden No.7’s reach and connect with audiences in new ways. This could involve collaborating with beauty bloggers or websites offering loyalty points for purchases on No.7’s website.  

3. CRM: Deepening customer engagement 
 

• Implement "Hybrid Loyalty Launch": The upcoming “Hybrid Loyalty Launch” program promises to further enhance customer engagement with the CRM. This could involve introducing features like anytime rewards alongside existing monetary incentives for high-value buyers, creating a more dynamic and rewarding experience.  
   
• Utilize lookalike audiences: Through leveraging customer data, No.7 and THG Ingenuity can target potential new customers who share similar characteristics with existing loyal customers. This allows them to reach a highly relevant audience with targeted marketing messages, increasing the likelihood of conversion.  

 
THG Ingenuity's data-driven approach and strategic channel optimization have demonstrably expanded No.7's online presence in both the US and the UK markets. By focusing on customer acquisition, loyalty program development, and efficient marketing spend, the partnership has achieved significant revenue growth and positioned No.7 for continued success.