Reflection 3: Dollar Shave Club

How Dollar Shave Club Used Social Media to Become a $1 Billion Company

Businesses have become largely interdependent with social media. With so many users on the web, it’s no doubt that marketers have to follow the consumers. Conversely, the chatter on social media about companies and their products on social media can have a very profound impact on the business image and ultimate success. As social media continues to evolve, the proportion of consumers who use traditional channels continues to decrease as users move to cyberspace. Some companies are in fact exclusively online, including Zappos, while many others such as Instant Pot are almost exclusively cyber (Lynch 2017). Effective use of social media is therefore becoming increasingly vital for corporate success. Good marketing on social media involves choosing the right platform or platforms and making posts that appeal to the target audience, creating a “perfect product-market fit” (Sukhraj 2016). However, it is crucial to remember that social media must be a two-way street. Companies must have employees “listening to the chatter online,” and responding in a relevant fashion (Kaplan 2010). One company which has excelled in its social media campaign is the Dollar Shave Club. Launched in 2011 and consisting of only 45 employees, the company was recently purchased by British company Unilever for US $1 billion dollars. The company is exclusively online and specializes in selling razor blades and other male grooming products, shipping them to your home on a periodic basis for a monthly fee. This idea is not completely novel and was around before Dollar Shave Club (or DSC) – companies like Harry’s also offered ship to home razors before DSC’s inception. So how did DSC become so successful? Effective marketing with outstanding use of social media was pivotal to their success.  

Dollar shave club started off as a single YouTube video which went viral and was shared on a variety of social media outlets including Twitter and Facebook. The video, famously entitled “Our Blades Are F***ing Great,” features the CEO introducing the company in a highly sarcastic and nonchalant fashion. The video was very successful because it “took a boring topic and made it entertaining and worth sharing with a friend, not to mention grabbing nationwide attention in the process” (Sukhraj 2016). The brand built on video marketing and expanded its reach to many other social media outlets, including Facebook and Instagram (Gesenhues 2016). The key to Dollar Shave Club’s success has been the establishment of their own very unique company character and personality. Marketing did a phenomenal job fitting in to the optimal user base (young men). They added in many playful things, making joining the club feel “like they let you in on a joke” (Sukhraj 2016). Members don’t just pay the monthly fees to get the razors, but for the experience. When you join, you get a membership card with funny one-liners written on boxes and cards.

From Sukhraj 2016.

 This company “isn’t just another razor company, it’s a brand with a distinct humor, culture, and lifestyle” (Sukhraj 2016). They make it all about the customer experience.

Dollar shave club is also very effective at word-of-mouth advertising, which has allowed them to continuously grow their user base. Contests like their DSCDads father’s day contest were very popular and garnered lots of user momentum. For DSCDads, users were encouraged to post pictures of their fathers on Instagram with the #DSCDads hashtag. The best users were selected and given “DSC Credits” for use on their website. In addition to this, DSC rewarded users on Facebook for sharing their stories and experiences with the company by giving away free shirts. Referrals and word of mouth sharing are a great, cheap way for companies to gain followers, not unlike the Instant Pot. So what’s the big takeaway from Dollar Shave Club’s social media success? Companies need to tell a story, not just sell. “Ads are by nature intrusive – videos should reward the consumer for giving you a moment of their time” (Gesenhues). DSC succeeded in making a very compelling, short and sweet video with a super unique attitude and exceptional charisma that people loved and shared. Once they garnered an initial user base, they All of DSC’s videos, media posts, and products themselves have a “distinct tone and style” (Gesenhues 2016).

Allen, Robert. 2016. How the pharmaceutical industry uses social media. http://www.smartinsights.com/social-media-marketing/pharma-industry-uses-social-media-infographic/

Gesenhues, Amy. 2016. CMO's view: Adam Weber interview about Dollar Shave Club. http://marketingland.com/cmos-view-adam-weber-dollar-shave-club-video-marketing-184234

Kaplan, Andreas. “Users of the world, unite! The challenges and opportunities of Social Media.” Business Horizons 2010.

Kietzmann, et al. “Social Media? Get Serious! Understanding the Functional Building Blocks of Social Media.” Business Horizons 2011.

Sukhraj, Ramona. 2016. How Dollar Shave lLub Grew from Just a Viral Video to a 615m Valuation Brand. https://www.impactbnd.com/blog/how-dollar-shave-club-grew-from-just-a-viral-video-to-a-615m-valuation-brand