Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing

Hubble Contact
Lenses

APRIL 23

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 Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing

Introduction:
 Hubble is a DTC lens and online subscription business that places a lot of emphasis on digital
marketing opportunities. With a single product ecommerce site and numerous supporting
offline and social media platforms, Hubble has experienced exponential growth

 The usage of multiple colored packaging, which visually enhanced their brand and expanded
their earned media, was a special feature that Hubble suggested. Additionally, Hubble's usage
of a subscription-based media creates a novel path within the lens industry, luring customers
who prefer automatic payments and delivery of goods to their doorstep

 Hubble has set the lowest price for its daily contacts on the market, which has led customers
and optometrists to question whether the goods' quality matches their cost

 Hubble was a social media-first company that sold contact lenses directly to customers by
eschewing traditional distribution channels. Hubble's aggressive digital marketing-driven
customer acquisition strategy made it simple for customers to purchase contact lenses directly
from Facebook ads by simply clicking through to the company's streamlined, mobile-optimized
e-commerce site.

Business/ Revenue Model:

 18 months prior to the launch of Hubble, Vision Path Inc. had been incorporated. It has more
than $30 million in investment and 125 workers in New York and the Philippines by April
2018.
 Hubble sold millions of contacts in its first year, producing an estimated $20 million in sales
annually and a valuation of over $200 million
 There is minimal competition and sky-high costs in the contact lens industry since four
manufacturers dominate 95% of the market. Hubble aimed to reduce the cost and
inconvenience of contact lenses
 They provide consumers daily contact lenses that have received FDA approval and are
delivered right to their door. High-quality materials are used to make the lenses, which are
packaged in 100% recyclable cartons after being quality-inspected
 Hubble noticed a remarkably positive response to the improved flow during the first three
months of utilizing Recharge. More than 600 orders were processed each day as they added
more than 17,000 new consumers
 Hubble experienced a significant increase in daily orders and client acquisition after integrating
Recharge into their daily operations, which resulted in a $1 million monthly run rate increase
 The company changed expenditure from digital marketing to offline media, which made
attribution modelling more challenging, making it important for the data-driven management
team to ensure that their marketing dollars were being spent effectively.

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 Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing

 To demonstrate that Hubble's customer value proposition and operations could economically
scale, choices were also on the table regarding product extensions, channel development
outside of DTC e-commerce, and global expansion

Resonating Focus Value Proposition:

 One of the organization's key strengths can be its regional presence in several places. It
establishes the company's market penetration and guarantees simple accessibility
 Effective social media management and a strong online presence on various social networking
sites can increase the impact of positive e-WOM and foster long-lasting relationships with
customers.
 Value proposition: Hubble is America's first DTC contact lens brand, dedicated to making
high-quality daily contact lenses affordable and convenient for a fraction of the price of other
brands. Wearers will never run out of contacts again thanks to Hubble's subscription service - a
more convenient, healthier way to avoid over-wearing
 Value: High quality product - Functional  Reduced Cost  Convenience/ Accessibility 
Aesthetic Value  Social Impact
 Experience and fulfilment: Hubble provides experience by providing free contact lenses for
first two weeks, including shipping, which in turn leads to 90% of customers buying the lenses
on subscription basis
 Hubble has consistent touch points with its customers in terms of information by posting
various vlogs, articles etc. and increasing user information on the product

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 Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing

Customer pain points:

 As the product was cheaper, there arises a dilemma in customers mind regarding the
authenticity & Quality of the product.
 The Dk/t value was quite low as compared to other competitor’s products.
 Not all the optometrists approved for this. They did not prescribe Hubble contact lenses to their
patients as they considered that they use old materials for a perceived lower price.
 Outdated as it lacks product innovation.
 Hubble has a slow shipping. People don’t want to wait for 5-10 days in this fast-moving world.
 It is difficult to cancel subscription once made.
 Health risks involved with the contact lenses as they are medical devices only and lead to eye
infections, dry eyes, etc.

Resonating solutions from Hubble point of view:

 They were willing to accept lower profit margins that the 80% plus that was common in the
dailies industry.
 The subscription model was designed specifically for cash strapped millennials- for people who
visited the optometrist had an introductory offer of getting first two weeks lenses for free with
only 3$ shipping cost .
 Recruited optometrists who would fit and prescribe lenses for it’s consumers through a referral
system enticing optometrists enlisted on ZocDoc for free.
 A double blind user pilot study was being conducted by the The Ocular Surface Institute of
the University of Houston comparing Hubble’s with Alcon’s Focus Dailies( High DK/t value
of 26) only to find out there were no significant differences in comfort or vision performance
between the two lenses.
 Improved their robust prescription verification process and retrained optometrist
representatives in their call centers.
 Open customer demographic strategies leaving room for all customers.
 Constantly improvising on ad content and execution to keep the customers engaged as well as
know their preferences and likeliness of buying the product.
 Keeping a track on the CAC/LTV value to keep track of company’s spending process

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 Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing

Elements of value that will enhance the value proposition of Hubble:

 Consumer friendly brand with opportunities for product line extensions(having significant
number of women customers who wore lenses for cosmetic purposes) like mascara and
makeup. Also people trusted their brand when relating to eye health and best vision
experience.
 Affordable and convenient to purchase daily contact lenses and avoid overwearing, while
taking care of the eyes on a serious note.
 Explore other options in the lens category such as sunglasses or eyewear .
 Instead of choosing to offer only spherical lenses explore other areas like toric or multifocal
lenses which allowed it to address more of the lens market.
 Convenient delivery system to consumers who had a prescription, at an affordable price.
 Providing them with an estimated time of delivery .
 Keeping customer preferences in mind sending mails/messages asking for feedbacks.
 Free consultation with optometrist in case of any irritation or eye issues after wearing the
lenses.
 Offers to keep the already existing customers by sending out timely updates to renew their
subscription for lenses.
 Reduced shipping charges or no handling charges for prime members with a subscription of 12
months.
 Encourage audience to post pictures on Facebook or Instagram tagging Hubble’s lenses with
their new look post wearing the lens.

Issues :

 Distribution channels - Problems with distribution channels. The growth of their distribution
options can work against them. Retail establishments were crowded and competitive.
 Need Product Innovation - Needs latest technology and product innovation. The Dk is quite
low as compared to what other brands were offering
 Entry Barrier - Entry in high population markets is a barrier because of the presence of big
brands. Their business model was more inclined towards digital space.
 Expansion Strategy - Product portfolio is not diversified. There is a lack in geographic,
product and distribution channel expansion which needs to be taken into consideration.
 Wide array of advertisement portfolio, making it difficult to measure and manage
 Unpredictive advertisement algorithm of Facebook. Leading to dependence on other
advertisement media
 Hubble was aware that they required a platform with powerful analytics and unique reporting
in order to scale. Customers weren't finishing the checkout procedure, they discovered. To

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Hubble Contact Lenses: Data Driven Direct-to-Consumer Marketing
increase conversions, they wanted to do away with the cart pages and build a quick checkout
process
 The Dk/t number, which measures lens quality and is lower than that of comparable brands,
emphasizes potential barriers to further growth in their new scaling mode.

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