Speech Summaries

Lynne Greene President Origins Natural Resources

The Power Of Products

Lynne Greene, President, Origins Natural Resources, spoke about how Origins is more than a little bottle; it is an icon brand that says that feeling good is only natural. There is an intellectual and multisensory feel to Origins, and there's plenty of humor in the brand.

Lynne recognized that not every brand belongs in every channel. The Origins product has ended up with three channels: its own retail stores, department stores, and a Web site. Its own retail stores are the best, as Origins controls the experience and the personal touch that is so important to the brand. Department stores give Origins a much wider reach for the product, as Origins only has 120 individual stores. The Web site started in 1999; Origins customers enjoy having access to the Web site and the additional information, even if the experience is slightly diluted.

Origins' objective is to service the customer. It communicates with permission marketing. From this research, Origins found that if a customer does not come back in four months, she is probably not coming back at all. The focus shifted to getting customers back into the store by offering a generous gift -- the key is that they enjoy their second visit as much as the first. Origins customers are four times more likely to come back if they receive a letter, and they also spend more on their second visit.

One of Lynne's "must dos": It doesn't matter which channel you choose if you are not dealing with a company with the power of the products behind them. Customers recognize value and authenticity behind products.

Questions And Answers

Q: How do you keep loyalty without undercutting profit?

A: Any loyalty program is there to develop a consumer. A loyal consumer as an entity is more valuable to Origins. If you ask, "How much will I spend on this program?" then who knows if you can afford it. The question is, if you have X consumers and raise loyalty by Y, do you have a profit?

Q: What metrics do you use to measure loyalty?

A: We look at how often the customer purchases on a yearly basis, how frequently she returns, and how much she spends.

Q: What strategies do you use for new customers?

A: We don't prospect for new customers. We built our store and image, and 80% of consumers found out about Origins through retail stores. Also, word of mouth has huge value for us. We had minimal reply from direct mailing.