Learning from VARON's 6.3 Billion Yen Annual Sales and 94% Retention Rate: The Complete Procedure for Designing Fan Engagement That Makes Customers Want to Keep Using Your Product

Why does the experience of effectiveness determine the retention rate?
By breaking down the customer communication that supports the 94% subscription retention rate of Suntory Wellness's "VARON," which has rapidly grown to 6.3 billion yen in annual sales, I will explain, from the perspective of a funnel designer, the design procedure for small e-commerce businesses to cultivate the experience of effectiveness and lead it to improved LTV and fan engagement.

Is your company's product being canceled before its benefits are "realized"?
Hello, I am Koji Nishimura, a funnel designer.

Today, I will delve into the core of repeat e-commerce, focusing on the term "experience of effectiveness." The subject is the men's skincare brand "VARON," which has rapidly grown to 6.3 billion yen in annual sales.

By the time you finish reading, you should understand that the measures to increase retention rates are not limited to "product improvement."

The reality that customers churn before experiencing effectiveness

First, let's confirm the facts.

The target is men in their 40s to 60s and older. They are turning a demographic that previously had no skincare habits into repeat customers through e-commerce.
On the other hand, what about many other repeat e-commerce businesses?

Even if you can push for the first purchase through advertising, the second purchase does not follow.
There are many managers who dismiss the cause as "lack of product strength."

However, there is a pitfall here.
In the early days of using a product, it is difficult to feel any changes in the first place.

In other words, customers make their judgment before the experience of effectiveness can take hold.

Why is "designing the experience of effectiveness" being questioned now?

Makoto Sakamaki, Department Manager of Skincare, explains the success factors of VARON as follows.

The supporting technology is also clear.

What is noteworthy is that they have eliminated the "hassle" through technology.
The effort of applying lotion, serum, and cream in order was a barrier to continuation.

It is precisely because that barrier was removed through formulation design that customers can reach the point of experiencing the product's effects.
What happens if you leave it alone? Customers acquired through advertising spend will continue to quietly drop off before they ever experience the effects.
With CPA soaring today, this 'invisible churn' hits management directly.

The questions that make customers notice changes, supporting a 94% retention rate

So, how does VARON cultivate the experience of product effects? The numbers tell the story of their success.

The key lies in the 'content' of the questions asked over the phone.

We do not ask, 'How is the product?' We are asking about 'changes in their surroundings,' not changes in their skin.
By doing this, we can elicit comments such as being told by those around them that they look younger, or that they have started looking forward to looking in the mirror.
The original text explains that having customers recognize these changes in their life and awareness becomes the motivation for continued use.

In other words, the experience of product effects is not completed by the product alone.
It is only when the customer themselves verbalizes the change that it truly takes root as a felt experience.

Furthermore, the original text states that for the younger generation, they inquire about their progress via their official LINE account and communicate the benefits of continuing.
This is a design for customer communication that segments channels by age and lifestyle.
This is exactly the 'self-recognition' and 'affirmation' phase of the 100-day fan-making plan that I advocate.
Have customers recognize immediately after purchase that their choice was the right one.
The accumulation of these moments leads to regular retention rates, improved LTV, and ultimately, fan conversion.

A move you can make starting today

Even for small e-commerce businesses, you can imitate this starting today. Send one email or LINE message to customers 7 days after their first purchase.
The text should not ask for their 'impressions of the product'.
Ask, 'Have you noticed any small changes in your daily life since you started using it?'
The words that come back will become the customer's own reasons for continuing.
Furthermore, those voices will also serve as evidence to move the next new customer.
Start by trying this with your list of customers from the last 30 days.

FAQ | Frequently Asked Questions about Experiencing Effects and Fan Design

Q1. What is the experience of product effects?
A. It is when a customer realizes the value of the product as a change in themselves.
It is not established by explaining features, but by verbalizing changes in their life.

Q2. What does the 94% retention rate refer to?
A. According to reports from Nihon Net Keizai Shimbun, it is the second-time retention rate for VARON's regular purchasers.

Q3. Is phone follow-up necessary even for small companies?
A. You do not need to call everyone.
Like VARON, it is realistic to design a system that uses email or LINE appropriately according to the customer segment.

Q4. What should I start with?
A. You should make it a system to send one message asking about 'changes' 7 days after the first purchase.

Summary | Experiencing effects is an asset cultivated through questioning

Experiencing product effects is not just the job of product development. Questions that make customers notice changes cultivate that experience and generate retention.
The staircase from [New Customer -> Repeater -> Fan] begins with this one move.
Does your e-commerce business have a system for asking about customer changes?