15X ROI in Sexual Wellness with AI

May 15, 2024

AI bot guiding in menstrual hygiene

Introduction

As per Maslow’s Hierarchy of Needs, apart from food, water, air and shelter, the only other fundamental physiological need is ‘Sex’.

More than 30% of content on the internet is Sexual. But, when it comes to awareness about products that aid fulfillment of sexual pleasure or wellness, then this category features at the bottom. The biggest reason is the stereotype associated with it, irrespective of whichever part of the world you are in.

The industry has two types of customers:

  • Needy: Seek solution to a problem

  • Greedy: Want to enhance the experience

The former come under Sexual Wellness products and the latter come under Sexual Pleasure. We are engaging both cohorts of customers with different approaches.

The Industry Challenge

The sexual wellness industry, despite its significance, remains shrouded in stereotypes and misinformation, leading to a myriad of challenges:

  • Information Asymmetry: Customers seeking reliable information on sexual wellness products are often met with unsafe or inaccurate online content. The alternative, personal consultations, brings the fear of judgement, leaving a gap in both category and product awareness.

  • History of Mis Selling: The vulnerability of customers, combined with the prevalence of misleading information, has historically allowed for exploitation by unscrupulous brands, making it difficult for genuine products to gain traction.

  • Lack of Customer Insight: The taboo surrounding sexual wellness topics hinders open discussions, resulting in a scarcity of insights into customer preferences and needs. This gap affects product development and effective marketing strategies.

  • Marketing Limitations and High CAC: Strict advertising guidelines and the risk of NSFW tagging in online spaces compound the challenge of reaching potential customers, inflating the cost of customer acquisition.

  • Consultation Hesitancy: Particularly within the sexual wellness sphere, potential customers often prefer initial anonymity, showing reluctance to immediate voice consultations despite the availability of professional advice.

Verifast AI to the Rescue

Verifast AI's approach was multi-dimensional, targeting the unique needs and challenges within the sexual wellness industry through several innovative strategies:

  • Rapid and Customized Integration: The AI chatbot was set up in a day, tailored to reflect the brand’s voice—from a knowledgeable "Sex Guru" to a trustworthy "Go-to Friend." This ensured users felt comfortable and engaged from the outset.

  • Educational Engagement: The AI focused on building category awareness and explaining product benefits and usage.

    For instance, addressing common barriers to adopting new products like menstrual cups by educating on size selection and benefits, which significantly aided category adoption.

  • Personalized Product Recommendations: Through a series of probing questions, the AI pinpointed the exact needs or desires of the customer, enabling tailored product suggestions from a wide range of SKUs, enhancing the customer journey from curiosity to conversion.

  • Insightful Data Utilization: The AI gathered insights from user interactions, such as preferences and behaviours, allowing brands to create targeted marketing strategies, custom product bundles, and refine their communication, leading to improved Return on Ad Spend (ROAS).

    Ex: We realized that diabetes led sexual issues are accounting for 18% of the customer queries. After sharing this insight, brands routed traffic by centering ads around it.

  • Seamless Appointment Booking: Post-education, customers were gently nudged towards booking appointments with in-house experts for a deeper dive into their queries, capturing contact details and preferred timings for a real-time push to the brand’s CRM.

  • Omni-Channel approach: We understand sexual or intimate needs can be urgent. Customers can not wait for online delivery. We made the AI omni-channel. Share your pin code or zip code and the AI shares the map link of the nearest store.

Impactful Outcomes

The strategic deployment of Verifast AI's technology yielded unprecedented success in the sexual wellness sector:

  • Enhanced Consultation Bookings: The platform achieved over 1,000 monthly bookings for consultations,

  • Bookings converting at 55%: AI was able to build trust for the brand before the actual consultation, thus setting a milestone in lead generation

  • ROI from Consultations: 15X ROI from consultations, setting a new benchmark for the industry and highlighting the cost-effectiveness of the solution.

  • Increased Sales Conversions: The AI-driven approach culminated in an 8% conversion rate of customers placing orders post-chat, not including the additional revenue generated from consultation conversions.

Conclusion

Verifast AI’s innovative application within the sexual wellness industry exemplifies how AI can be a powerful tool in overcoming entrenched challenges, from breaking down barriers of misinformation to fostering personalized customer journeys. By strategically leveraging AI for education, personalized engagement, and insightful data analysis, Verifast AI has not only boosted sales and conversions but has also established a new standard for online sales in traditionally sensitive markets, affirming its position as a leader and innovator in the AI space.