Dollar Shave Club + Qualtrics
Dollar Shave Club + Qualtrics
Validating a new market segment in weeks using AI research
The Challenge
Dollar Shave Club built their brand around serving a specific consumer segment with a direct-to-consumer shaving experience that disrupted traditional retail. But as the company looked to accelerate growth, they identified a significant untapped opportunity: expanding into a new target consumer market. The challenge wasn't just about product development – it was about truly understanding a demographic they'd never served before.
"We needed to move fast to validate whether our brand could resonate with this new consumer segment," said Nikki Frisz, Senior Director of Marketing at Dollar Shave Club. "Traditional research methods would have taken weeks and a significant budget, limiting how thoroughly we could explore this new audience before making strategic decisions."
Accelerating market intelligence with AI-powered research
Rather than commit to lengthy, expensive traditional research upfront, Dollar Shave Club partnered with Qualtrics to explore synthetic panel technology. This allowed them to rapidly test key assumptions about these consumers' shopping behaviors, brand perceptions, and product preferences, getting directional insights in days rather than weeks.
The program focused on critical business questions: How does this consumer segment approach personal care shopping? What drives brand loyalty in this segment? Would Dollar Shave Club's value proposition and brand personality translate to this new audience?
Validating strategy with confidence
The synthetic data revealed actionable insights that aligned closely with human research patterns, giving Dollar Shave Club confidence to move forward with their expansion strategy:
- Market reality check: The AI correctly identified that this consumer segment primarily shops for personal care at accessible retailers and through direct-to-consumer websites, rather than specialty stores, providing realistic expectations for distribution strategy.
- Brand receptivity: The data showed strong directional alignment on how this segment perceives direct-to-consumer and mainstream brands, confirming Dollar Shave Club's positioning could translate to this new segment.
- Behavioral insights: Synthetic responses accurately mirrored human data on routine-based attitudes like "I don't enjoy shaving and only shave when I have to," validating key customer pain points the brand could address.
- Segmentation clarity: Both synthetic and human data produced identical themes around shaving perceptions – "experience" versus "necessity" – giving the team clear customer personas to target.
Dollar Shave Club achieved
Dollar Shave Club achieved
Accelerated decision-making, compressing research timeline from over a month to just a few weeks
We were surprised by how closely the synthetic responses mirror human data and insights we have for the category. We saw a lot of overlap for synthetic responses as they related to behavioral, brand and shopping insights that we have previously done in the category and gave promise to being able to apply learnings confidently.
Nikki Frisz
Senior Director of Marketing
Dollar Shave Club