About the Company
Dermalogica, a Unilever-owned subsidiary, is a professional-grade skin care brand founded in 1986 by skin therapist Jane Wurwand. Dermalogica sell their iconic skincare products online, in their own select stores and department stores, as well through their network of professional skin therapists worldwide, for whom Dermalogica is the number one choice.
PriceBot
Price Optimization
United States
Beauty
The Goal
During the COVID pandemic, stores and beauty salons closed for months, meaning that 100% of Dermalogica’s sales went online. Shoppers who would usually shop exclusively in stores or at their local Dermalogica skin centers were now flocking to the site, and unwilling to let a crisis go to waste, Dermalogica took advantage of this opportunity to try something new that they had previously convinced themselves was impossible to do: price testing.
The Strategy
Working hand-in-hand with Tontine’s Price Optimization Experts, both teams collaborated on a multilateral strategy that focused on conservatively price testing the lowest hanging fruits (i.e. the best sellers like the Daily Microfoliant) to capture incremental gains on gross revenues, while at the same time, deploying a much more aggressive strategy when it comes to price testing the long-tail products. This decision was based on Tontine’s expert analysis, powered by data from PriceBot, that although the long-tail products drove only a tiny fraction of the revenue mix, they were products that appealed to a niche but fiercely loyal audience — which, in turn, implied significant pricing flexibility that has yet to be exploited.
The Results
This intricate but comprehensive strategy worked phenomenally, and allowed Dermalogica to increase overall gross revenue by close to 6% — beating virtually every internal forecast as well as the conventional wisdom that due to the WFH/”new normal”, they’d see a drawdown in demand. As an example, one of the serums Tontine’s experts have identified to be a prime candidate for material price increases due to its consistent repeat purchase rate (i.e. indicating a loyal base) sustained a 1,300% price increase without ever seeing a dip in conversion rates. After working together for a month, Dermalogica saw the real benefit of working with Tontine: increased revenues, without having to add any additional costs or even ship an additional unit. Now, they’re getting more out of every order and customer without much additional effort.
More case studies
"How do you know if you’re charging the maximum customers are willing to pay? You don’t. We certainly didn’t. That’s why we use Tontine."
“Finding the best price for each of our products is a lot faster with Tontine. And in our industry, that means we’re able to bring a product that’s on-trend to market a lot quicker.”
"Working with Tontine is as hands-on/off as you’d like. The Price Optimization Experts ensure they’re consistently delivering value without becoming another burdensome platform to manage."
"When we started working with Tontine, they promised us full control, incredible support, and clear-cut ROI. They’ve delivered. You won’t find a more professional & accommodating team elsewhere."
"How do you stay ahead of the rapidly evolving landscape in such a competitive industry? You reconsider every aspect of your business regularly — starting with pricing."
“Tontine’s A/B testing system is very different from anything we’ve used previously — it’s undeniably more effective and impactful.”
"Risk-free price testing is an insurmountable challenge with our complicated custom infrastructure… rarely do you find a team so helpful and willing to dive straight into it to ensure everything is set up perfectly."
“Tontine basically provides the ground truth for any product release, since it starts with pricing. This is a very, very critical piece to the way we operate.”
"Tontine is the best kept secret for Shopify retailers. We can now safely adjust our prices to maximize profit without losing customers, because we have the data to back it up."
"Our D2C channel was a loss leader in our revenue mix— until we started working with Tontine. This was the path of least resistance to growing our revenue without any associated overhead."
"Clients typically see a 5-7x ROI increase on their creative assets even without extensive CRO work — Tontine is our unfair advantage."
"Tontine helped us test different price points for new products with a group of superfans, so when we released the products publicly, it was at the most profitable price."
“Kudos to Tontine’s team for meeting our extremely strict standards and SLAs. The whole Tontine team stepped up and worked hand-in-hand with us to meet our needs.”
"Tontine is a true partner, rather than just another vendor. We rely on them for strategic insights, competitive market analysis, and most importantly, reliable price test results."
"Truly a no-brainer: Tontine is the go-to solution if you’re trying to focus on your business’ bottom line instead of just optimizing for the top line. For us, this is the most important profit lever we have in our toolkit."
"Our biggest concern was the technical lift needed to integrate with Tontine. Thankfully, their Implementation Specialists handled it all, and didn’t stop working until we were satisfied."
"We haven’t discovered an A/B testing solution that prioritizes protecting our brand integrity as much as Tontine has. The only solution that’s truly compatible with our stack."
“No strenuous integration, no ambiguous data, and no friction working closely with Tontine’s team. This has been a dream partnership.”
“Tontine’s AI engine, PriceBot, is exceptional… the more data it ingests, the better it gets at predicting prices, even for unreleased products.”
“We can’t fathom of an easier or faster way to price test our products and receive a decisive result in just days. Tontine is integral to our merchandising strategy.”
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