Octane AI > Case Studies > Zero-Party Data Strategy: A $500k Success Story of Skinny Mixes

Zero-Party Data Strategy: A $500k Success Story of Skinny Mixes

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Technology Category
  • Sensors - Utility Meters
Applicable Industries
  • Electrical Grids
  • Retail
Applicable Functions
  • Procurement
  • Sales & Marketing
Use Cases
  • Intelligent Urban Water Supply Management
  • Leakage & Flood Monitoring
About The Customer

Skinny Mixes started its journey with a single product, a skinny margarita. Over the course of 13 years, it has grown into a major player in the healthy beverage industry, with a wide range of product offerings including coffee syrups. The brand has a strong presence in both retail and ecommerce sectors. Known for its community-driven marketing and excellent customer experience, Skinny Mixes has become a multimillion-dollar brand and a leader in the direct-to-consumer (DTC) space.

The Challenge

Skinny Mixes, a major player in the healthy beverage industry, faced a challenge common to many ecommerce brands: the changes in data privacy and advertising. With most users opting out of data tracking and the impending disappearance of tracking cookies in 2023, the brand needed to find new sources of data to power their campaigns and reduce their reliance on third-party data. The brand's primary goal was to understand their customers better and increase engagement. They wanted to learn more about what drives their customers and improve their overall experience.

The Solution

Skinny Mixes adopted a zero-party data strategy, using Octane AI to power a 'recipe finder' quiz on its Shopify store. The quiz was designed to collect customers’ tastes and preferences, learn their flavor profile, and then recommend the perfect recipe that includes their products. This strategy resulted in a 20% quiz-to-purchase conversion rate and became the source of 25% of Skinny Mixes' total monthly revenue. In addition to the quiz, Skinny Mixes collected 107,000 zero-party data points and over 13,000 emails via conversational pop-ups in one month. They used this data to segment customers and personalize conversations in owned channels, like Facebook Messenger, SMS, and email, thereby providing value through personalization.

Operational Impact
  • The zero-party data strategy not only boosted Skinny Mixes' sales but also provided valuable insights into customer behavior. For instance, through the quiz, the brand discovered that a large group of customers were using their syrups to flavor water, a use case they hadn't considered before. This insight led to the expansion of recipes in that category, and flavored water soon became one of the main uses for Skinny Mixes’ syrups. This example demonstrates the potential of zero-party data in informing product development and marketing strategies.

Quantitative Benefit
  • $500,000 in revenue attributed to Octane AI in one month

  • Collected 107,000 zero-party data points in one month

  • Collected 13,000 emails via its quiz in one month

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