Sachet sampling is a cost-effective method of marketing your cosmetic and beauty products – and we can help you prove it.
At Fillcon, we’re first in the way of everything about cosmetic samples. As one of the most profitable marketing methods for cosmetics, samples and testers are widely known to yield good ROIs. In this article, we’ll outline why measuring ROI is important, show how to calculate the ROI of your cosmetic samples, and offer methods to improve the ROI of your cosmetic and beauty samples.
Get in touch today to secure your cosmetic sampling solution!
Why It’s Important to Measure ROI for Cosmetics
Before we get into how, it’s good to know why you should measure the ROI for your cosmetic samples. If you’re turning a profit, it can be easy to settle into the status quo. However, trends in the marketplace are always evolving – fall behind, and you could take an unforeseen hit. Plus, there’s always room to do better, and growth starts by analysing where you are and where you can go next.
There are several key reasons why you should measure the ROI of your cosmetic samples. These include:
- Proof of the effectiveness of your marketing strategy
- Highlighting areas for improvement
- Informing your business decisions
- Keeping you pro-active in growing and developing your business
- Providing insight into key market and consumer trends
The actual impact of cosmetics can also be quite hard to predict, particularly at a cursory glance. Consumer awareness, brand loyalty, and delayed purchases are all outcomes of cosmetic samples that might not be reflected in your day-to-day sales increases or customer conversions. Properly measuring the ROI of your samples over a specified time period will give you the best insight into what the impact of your marketing efforts actually is.
How to Calculate the ROI of Cosmetic Samples
When you run a marketing campaign, you can clearly calculate it’s ROI through comparing the sales at the end of the campaign with the projected sales based on past trends and data for the same time period.
The cost of your cosmetic samples is their cost to purchase, their admin and handling cost, and the cost of distribution – i.e., how you get them to the customer.
With this in mind, here is the formula to determine the ROI of your cosmetic samples:
ROI = Sales After Campaign – (Projected Sales + Cost of Samples)
You should also bear in mind other market events that could be affecting the perceived success of your campaigns. By performing an impact analysis of these events and adjusting your ROI results accordingly, you’ll be able to see the true effect of cosmetic samples on your profitability.
If you’re not running a campaign and just distributing samples as part of your general marketing efforts, there are still ways you can monitor their effects. One way is through looking at things like customer reviews or email open rates – places where customers leave evidence of their interactions with your product. By monitoring the channels through which you distribute your samples, you should be able to get an idea of their results.
How to Improve the ROI of Your Samples
Define Your KPIs
KPIs, or Key Performance Indicators, are statistical indicators of how well your marketing efforts are doing. They’re the goal you should strive for, as well as a reflection on your results so far.
To make the most out of your KPIs, they should be SMART. This means being:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
Manage Your Costs
Calculate your costs and expenses at every stage of your sample delivery. Keep track of how they change based on market rates and the scalability of your operations. Then, measure the impact of your efforts born from these costs on your sales. You should always aim to make the margins for that final output even greater in your favour.
Better Targeting
Reaching an audience is good. Reaching an audience that wants to buy your product and that connects with your message is even better. To stop wasting your own time and money, as well as the time of your customers, it’s best to target your products as specifically as you can.
Create personalised products or advertisements that appeal to a specific audience, then market them exclusively to those people. Or, you can build relationships with customers through personalised interactions like customer support or online quizzes – leading to an audience that will come straight to you.
Use High-Quality Samples
By offering high-quality samples rather than the cheapest you can find, you cut down on product wasted due to damages while also delivering something that customers are more likely to enjoy and appreciate. When doing this, it’s best to order in bulk so you can cut down on costs – and the 10,000 minimum order quantity for sachets from Fillcon is the perfect place to start you off.
Find out more about our recyclable sachets >
Keep a Long-Term Plan in Mind
Not every investment will pay off immediately, especially when you’re trying to convert customers to your brand. If you successfully show your value and get a customer hooked on your offering, you’ll end up making far more than one sale off that single conversion.
Gather and Act on Feedback
Be proactive with your efforts! Find out what your customers want, what they’re saying about your products, and what you can change. Cosmetic samples are a great way to gather a large amount of feedback about your products, especially if you offer something in return for a response like a gift voucher or further product sample.
99% of customers at least sometimes read reviews when shopping for beauty products online, and 85% do when in store. By paying attention to these reviews and responding to customer sentiments, you’ll ensure that public perceptions of your brand are always high – leading to a further increase in sales.
How Effective are Cosmetic Samples for Marketing?
Free samples are undoubtedly one of the most effective ways of driving new traffic to your brand. In fact, two case studies from a beauty tech platform showed strong results that indicate just that.
The first showed an up to 8 times return on investment for sample costs versus purchases, with 8.33% of customers who received a sample going on to purchase a full-sized product.
The second study showed that, of the 88% of people who received a free sample that responded to the survey, 79% said they would purchase a full product. This means around 70% of the total samples that were sent were likely to result in a sale.
With the low costs and high benefits of cosmetic samples for marketing, they remain one of the most powerful tools for beauty brands to acquire new customers.
Some more stats for you: 57% of shoppers say they’ve never tried over 25% of the beauty products they bought online in 2020. However, this still leaves 43% having tried over 75% of the cosmetics they bought before committing to a purchase, and a far larger proportion of products being tried before purchase than not.
The Psychology Behind Cosmetic Samples
Another reason why cosmetic samples are effective for marketing is the psychology behind them. There are five key factors of psychology that cosmetic samples represent:
- Reciprocity – giving a return for what has been given.
- Salience bias – an increased awareness of products.
- The ‘power of free’ – free samples only come with upsides.
- The ‘power of experience’ – after trying something, you’ll be familiar with it, and therefore more likely to want to try it again.
- Risk factors – free samples mitigate risks to consumers and businesses, providing a cost-effective way to trial a product.
Find out more about the psychology of cosmetic sampling >
Increase Your ROI with Cosmetic Samples from Fillcon
As one of the most cost-effective forms of marketing, cosmetic samples are a useful tool to increase your profit margins. By paying attention to the ROI, you can identify how much to spend to maximise the usefulness of this marketing channel.
At Fillcon, we supply cosmetic sampling solutions to ensure your samples are the best they can be, improving their impact on clients and giving you the greatest return on investment. Get in touch today to secure your high-quality solution!
Learn how to safely store your cosmetic samples >
Discover some cosmetic sample distribution strategies for the UK market >
