Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use Community-Driven Product Design
Transcript
- Lucas: If you've ever bought a Glossier skincare product, you've essentially bought a product that thousands of Instagram comments helped design. Luna: That's a bold claim. Are they really crowdsourcing formulations? Lucas: Not entirely, but more than most people realize. Glossier's entire product development process is built around community input. Before they launched 'Solution' — a toner back in 2017 — they polled their Instagram followers on what they wanted in a toner. Things like texture, ingredients, even the packaging color. Luna: So they basically used social media as a focus group. Lucas: Exactly. And the result? 'Solution' generated over ten million dollars in sales in its first six months. That's a pretty strong return on a free survey. But the approach goes deeper than just polling. They have a private community called 'Into The Gloss' where superfans beta test products and give detailed feedback. Luna: I remember that. But didn't their community-driven approach backfire with the 'Play' makeup line? Lucas: It did. 'Play' was a color cosmetics line launched in 2019, and it flopped. They discontinued it less than two years later. The problem? They relied on the same community feedback that worked for skincare, but makeup is different. Skincare is more functional — people want ingredients that work. Makeup is emotional, trend-driven. Luna: Right. The community might have said they wanted bold colors, but when it came time to buy, they stuck with their usual brands. Lucas: Exactly. That's the risk of community-driven design: your most vocal customers aren't always representative of the broader market. But when it works, it works really well. Lululemon does something similar with their ambassador program. They give local athletes and fitness instructors early access to new products, and those ambassadors provide feedback before a nationwide launch. Luna: So it's not just about asking people what they want, but testing with the right people. Lucas: Right. And the key is to have a structured process. Glossier uses their own platform, but many DTC brands now use third-party tools like Circle or Discord to build private communities for beta testing. You invite your most engaged customers, give them early access, and ask for specific feedback on fit, feel, or function. Luna: How do you decide who gets into that inner circle? Lucas: Usually based on purchase history, engagement, and loyalty. You want people who've bought multiple times and who leave reviews. They're your product co-creators. Some brands even give them a small reward — a discount or early access to future launches — but the main incentive is being part of the process. Luna: I've seen this work for apparel brands too. Like, Outdoor Voices uses community feedback to decide on new colors and patterns for their activewear. Lucas: Absolutely. And the beauty is that it reduces risk. You're not guessing what will sell; you're validating demand before you spend on inventory. That's huge for DTC brands with tight margins. Luna: But what about the downsides? Besides the Glossier 'Play' example, are there other pitfalls? Lucas: One is that your community can become an echo chamber. If you only listen to your biggest fans, you might miss what casual customers or non-customers want. Another is speed — collecting and acting on feedback takes time. If your competitors are moving faster, you could lose the window. Luna: So it's a balance between listening and leading. Lucas: Exactly. You can't just hand over the product roadmap to your community. You need a clear vision, and use community input to refine, not define. Apple, for example, rarely does community-driven design. They lead with their own vision. But for many DTC brands, the community is their competitive advantage. Luna: Let's talk numbers. What's the ROI of setting up a community beta program? Lucas: A study by the consulting firm 'Revel' found that brands with active community beta programs see a twenty percent higher conversion rate on new product launches compared to those that don't. Plus, the products tend to have lower return rates — because the feedback catches issues early. Luna: That makes sense. If a beta tester says a shirt fits weirdly, you can adjust the pattern before mass production. Lucas: Exactly. And it also builds loyalty. Customers who feel heard are more likely to buy again and tell their friends. It's a form of retention marketing that also improves your product. Luna: I want to get practical. How does a smaller DTC brand start this without a huge budget? Lucas: Start small. Use a free tool like Google Forms to survey your email list. Ask about a product you're developing. Then, once you have a prototype, invite a handful of top customers to try it and give feedback via a simple email thread. You don't need a fancy platform at first. Just ask and listen. Luna: And then scale up as you see results. Lucas: Right. Once you have a few cycles of feedback, you can invest in a proper community platform. But the important thing is to start. Even one beta test can save you from a bad launch. Luna: Speaking of saving from bad launches, I've been thinking about how much this approach relies on honest feedback. Do you worry that customers might not be fully candid? Lucas: It's a risk. People might be polite or try to please you. That's why you need to ask specific questions — not 'do you like it?' but 'how does the fabric feel when you exercise?' or 'what would you change about the fit?' Also, anonymous surveys can help. Luna: Good point. And you also have to be willing to hear negative feedback and act on it. Lucas: That's the hardest part. But if you're not ready to kill a product based on feedback, then don't ask. The whole point is to improve, not to validate your own ideas. Luna: Let's bring it back to Glossier for a moment. They've been in the news recently for restructuring. Do you think their community-driven model is partly to blame? Lucas: I think the model works well for product development, but it doesn't solve distribution or brand positioning. Glossier's struggles are more about retail expansion and competition than about their product process. Their community remains strong — it's just not a cure-all. Luna: Fair. So the takeaway is: community-driven design is a powerful tool, but it's one part of a larger strategy. Lucas: Exactly. And if you're a DTC marketer, it's worth testing on your next launch. Start with a small group, ask the right questions, and be ready to pivot. The best brands make their customers feel like partners, not just buyers. Luna: And speaking of partnerships, we should mention that conversations like these are only possible because of listener support. Lucas: Yeah, we keep the show ad-free, and that's thanks to people who chip in a few dollars a month. If these episodes have given you an idea you've actually used, buy me a coffee dot com slash fexingo is the place. Luna: Even a couple of bucks makes a real difference. It keeps us going. Lucas: But back to the topic — the other thing I want to mention is that community-driven design isn't just for products. Some brands use it for content too. Luna: How do you mean? Lucas: They ask their community what topics they want to learn about, then create blog posts or videos based on that. It's the same principle: listen, create, validate. And it often leads to higher engagement because the content is exactly what people want. Luna: That's a smart extension. So whether it's product or content, the core idea is to involve your customers early. Lucas: Right. And the beauty is that it builds a deeper relationship. When customers see their input in a finished product, they feel ownership. And that's hard to replicate with any other marketing tactic.