Want to know how an ecommerce brand can achieve $200 million+ in yearly revenue?
That’s exactly what Daniel Wellington managed to do.
And here below, we look at how the brand did it.
Read on to learn all about it.
What is Daniel Wellington?
Daniel Wellington is a direct-to-consumer watch brand.
Its business model is simple:
Stylish and timeless watches for a relatively low price tag (around $200).
Daniel Wellington was founded in 2009… But it already has a $200 million+ yearly revenue.
How did the company achieve this?
One of its main competitive advantages has always been influencer marketing.
And that’s what we’ll look at next.
Strategy #1: How Daniel Wellington Used Influencer Marketing to Grow Fast
Here’s the thing:
One of the keys to Daniel Wellington’s success is influencer marketing.
And it’s something the brand does extraordinarily well.
Here, we’ll look at how Daniel Wellington was able to grow so fast with the right influencer marketing approach.
How Daniel Wellington got so much visibility early on
If you look at most big-name watch brands, they’re not that visible on social media. (Or at least, they weren’t back when Daniel Wellington first started using social media).
These watch brands are sold at specific stores and they work with selected influencers…
But not Daniel Wellington.
The company took the approach, “be everywhere”.
So, they worked with different influencers (not just a handful that fit their brand perfectly).
And they started selling their watches in different stores all over the world.
The thing is:
This way, Daniel Wellington got a ton of brand visibility early on.
It was hard NOT to notice the brand.
Why influencer marketing made all the difference
You might have seen Daniel Wellington watches in these types of Instagram posts:
And there’s a good reason for that.
You see, influencer marketing is extremely powerful.
In 2015, Nielsen reported that 66% of consumers trust reviews posted online.
So yeah, word of mouth is important.
And when your brand is seen all over the place at once…
…Well, let’s just say Daniel Wellington’s results speak for themselves.
How can you use this in your business?
So, now you know why influencer marketing is important. You know how Daniel Wellington used it to grow quickly.
How do you use this in your business?
Use different influencers
In the same way that Daniel Wellington uses several different influencers, you can, too.
Make sure their audiences are relevant.
And, pick influencers that fit your brand.
You wouldn’t see Daniel Wellington watches on, say, a motorcycle enthusiast’s Instagram account.
That’s because this person probably doesn’t have the right audience (young professionals).
Plus, they wouldn’t be a great fit for the brand.
Instead, you see lifestyle and fashion bloggers promoting Daniel Wellington watches.
Use similar images and captions
If you look closely, you’ll notice something interesting.
Most Instagram posts include the same type of language and aesthetics.
Today was the first sunrise chasing for a long time. It felt great, love this fresh air in morning, singing of the birds and first sun light 👌🏼. It definitely gives me energy and inspiration. Wearing my favorite @danielwellington watch♥️. Use a code “JuliaK” when purchasing and get 15 % off + now you’ll get free strap (until April 24th)😊 #danielwellington #followmeto
That’s because Daniel Wellington (like any brand) wants to keep its brand consistent.
When you set up an influencer campaign, make sure to ask influencers to share the same type of text and images.
Let’s move on to strategy #2.
Strategy #2: Use Social Proof to Build Trust
Here’s an interesting fact:
Right now, there are almost 2 million Instagram posts with the hashtag “#DanielWellington”.
But… Why is this a thing?
Social proof is a major reason people buy from you.
If they see that other people buy from you, they trust you more.
And that’s exactly what this hashtag does for Daniel Wellington.
So, wait… How can one watch brand have so many hashtag shares?
Well, Daniel Wellington is extremely savvy when it comes to using social media.
Here are a few ways in which they encourage people to share their hashtag:
It doesn’t come as a surprise:
Daniel Wellington’s influencer campaigns have had an impact on how many people use the hashtag.
But there is more to it…
Namely, the gamification of Daniel Wellington’s hashtags.
You see, the brand features people’s Instagram photos with the hashtag #DWpickoftheday.
And to be featured, customers need to take a beautiful photo with their Daniel Wellington watch and tag the image with the hashtag #DanielWellington.
A pretty sweet incentive, right?
And that’s the reason Daniel Wellington has so many hashtag shares.
You can do this, too.
Use a hashtag and encourage people to share it in their captions.
Let’s go to strategy #3.
Strategy #3: Offer a Bonus to Drive Sales
Ever seen an influencer post promoting a Daniel Wellington watch? Then, you know the posts look something like this:
WATCH LOVE♥️ Sunshine, sand and a riot of colours! Bring in this summer with Daniel Wellington’s classic yet pocket friendly timepieces! Buy a watch and get any strap FREE and also, use my code DWSONAL to get an additional 15% off! And also receive free shipping! You can also use the code at their stores. Offer valid until 23rd April, 2018, hurry up and get your watches now! @danielwellington #danielwellington Photo courtesy my fav photographer – @arte_anima_amore
What’s going on here?
Well, you might notice the captions.
They include a bonus- usually a promo code.
What else is going on here?
In fact, quite a lot. Let’s break it down:
First, the promotion has a defined time limit.
And what does this do?
It adds urgency to the offer.
You see, urgency is a strong psychological driver that makes us take action.
And by using urgency in their captions, Daniel Wellington gets people to take action and buy their watches.
Use personal codes
Instead of using a generic code, Daniel Wellington assigns a special promo code to each influencer.
This is an incentive for the influencer. After all, a unique promo code is much more exclusive than a generic campaign code.
Use a bonus
So what’s up with the bonus?
Well, it’s an incentive to share the post.
You see, this offer means that the influencer’s audience gets an advantage. And that makes the influencer look good.
Use a referral link
Want even more results?
Share a referral link with the influencer. This way, they have a direct incentive to create posts with your product because they earn a commission every time someone buys the product.
You can make this easy by setting up a referral program for your ecommerce store using Refersoft!
Ready to move on?
Let’s take a look at strategy #4 (this is a good one).
Strategy #4: Use Smaller Influencers Instead of Big Names
One of the main reasons for Daniel Wellington’s success?
The brand has always kept its advertising costs down.
Instead of splurging on big-name influencers, it originally targeted people with smaller audiences.
This meant that the brand was able to get exposure in return for a free watch.
Here’s the thing:
Most big brands don’t use these smaller influencers.
After all, they have an established brand. That requires a more hand-picked selection of influencers who go hand in hand with the brand.
They use money on big-name influencers.
As a new watch brand, Daniel Wellington didn’t have anything to lose.
Instead of working with expensive influencers, it opted for several smaller influencers.
Even today, influencers with smaller audiences don’t get paid to promote a watch.
Instead, they get a watch and a coupon code to share with their audience.
You can use this in your business.
Instead of trying to reach expensive influencers, try smaller influencers with engaged audiences.
These influencers are often better for your brand.
That’s because the influencers are more niched and they have a more personal relationship with their audience.
So, their audience trusts them.
How do you know if an influencer has an engaged audience?
Go to the influencer’s profile and check the comments.
Compare the number of comments with the number of followers.
Are there a lot of comments? (So for example: 5-10 thoughtful comments per photo if someone has an audience of 1000 followers.)
That’s an influencer you might want to work with.
If you want a platform to make it easier to deal with influencers, check out an influencer marketing service like Whalar.
Strategy #5: Use a Captivating Story So People Remember You
If you’ve ever read an interview with Daniel Wellington’s founder, Filip Tysander, you know there’s one story he repeats over and over again.
And that story is:
When Tysander was backpacking in Australia back in 2006, he happened to meet a stylish Englishman called Daniel Wellington.
Tysander admired Wellington’s Rolex watch with a NATO strap so much that he eventually founded his own watch company…
…And yes, named it after the Englishman.
What’s up with this story?
Why does this story work?
The story goes hand in hand with the brand.
Adventure, elegance, style…
And you’re bound to remember it.
You see, storytelling is one of the best ways to connect with people.
People remember stories 22 times better than facts. Yes, that’s 22 times.
And in fact, storytelling makes things more valuable in our minds.
Woah… wait, what?
Yeah, it’s true.
Take Significant Objects.
This project sold thrift store items on eBay.
The hook? It paired every item with a short story.
And you know what?
The objects sold at significantly higher prices than their initial price tag.
For example, this jar of mayonnaise sold at $50… Purchase price? Free.
That’s exactly why the founding story is so important to the Daniel Wellington brand.
It helps customers connect with the brand and company.
And that, again, makes Daniel Wellington stand out from the hundreds of watch brands out there.
How do you tell your own story?
There are a few things you need to keep in mind:
The story arch
Every compelling story has a story arch.
A beginning, a middle, and an end.
In Tysander’s story the beginning is a guy backpacking in Australia.
The middle is the chance meeting with the stylish Englishman.
And the end is Tysander’s vision of an elegant watch brand.
But there’s more to it…
Who are your story characters?
Your story needs characters.
A hero (someone who faces a challenge), a guide (someone who helps the hero overcome the challenge), and a villain (the evil force in a story).
In Filip Tysander’s story, he’s the hero. And here’s the thing: he’s relatable.
He’s just an Average Joe backpacking in Australia.
There, he meets his guide, Daniel Wellington.
Wellington shows him what style looks like.
So, Tysander decides to help others dress in style by creating a watch with a mid-range price tag.
What does your story look like?
What’s the challenge? And who are your characters?
Remember, storytelling is key if you want your brand to stand out.
Inspired by Daniel Wellington’s Success?
Now you know how Daniel Wellington managed to grow so quickly.
Feel inspired to use some of these strategies?
Use this checklist to use to do just that:
- Influencer marketing done right. One of Daniel Wellington’s main competitive advantages is its influencer marketing strategy. It was one of the first brands to use it properly and even today, it continues to leverage influencers’ audiences.
- Use social proof. Daniel Wellington’s hashtags are widely shared- mainly because of its daily photo competition.
- Use a bonus to drive sales. When Daniel Wellington reaches out to influencers, it gives a special promo code that’s specific to the influencer. This makes the campaign feel more exclusive and gives an incentive to followers.
- Target smaller influencers. Daniel Wellington didn’t start out by going after the biggest influencers. Instead, it continues to use mid-sized influencers who are much less expensive (sometimes the only cost is the watch.)
- Share a compelling story. One of the stickiest things about the brand is the story founder Filip Tysander shares over and over again. It’s entertaining and it goes hand in hand with the brand.
That’s it- over to you.
Write a quick comment and let me know:
What’s your favorite strategy and how will you use it in your business?