Affirm delivers 'surprising' new customer growth for Wander Beauty
“I am a complete accidental entrepreneur,” said Divya Gugnani, CEO and Co-founder of Wander Beauty. “I never thought I would start a business.”
But serial entrepreneur may fit better: Wander Beauty is the fourth company she has co-founded. A former investment banker and private equity executive, Gugnani also owns an investment fund and was an early investor in Shopify and Pinterest.
“Being a mom is the best title I hold,” she said. As a busy mother of two, she discovered she had no time to deal with a beauty routine. So she started Wander Beauty in 2015 to solve this challenge for herself and countless others. The company creates clean, multitasking beauty essentials “you can reach for every day, wherever you wander.”
Innovation is a big part of Wander Beauty’s DNA. Gugnani recalled how some beauty experts tried to dissuade her from making mascara, since so many larger brands did it well already. But she was determined to make a better mascara, and she innovated with ingredients, packaging, and the shape of the wand. The result is now an Allure Best in Beauty award-winning mascara and a top seller at Sephora.
Her company’s partnership with Affirm also had an impact on sales, driving a 30% lift in average order value (AOV) on sales with Affirm. In addition, Wander Beauty is gaining 92% new customers with Affirm.
“Any time you see a channel driving 92% new customers, it's surprising,” said Gugnani. “We're always looking for ways to introduce customers to Wander Beauty and make it as easy as possible to get our multitasking beauty essentials into their hands. So to be able to do that with Affirm and have that level of success is very significant for the growth of our business.”
The growth of Wander Beauty has helped Gugnani achieve more of her goals. “My big mission—as a woman and woman of color—is to empower women. I also want to invest in them and give back.” She said Wander Beauty is very close to reaching $1 million in charitable giving.
The pandemic accelerated her philanthropy, she said, but also highlighted the importance of being transparent with customers and mobilizing resources to meet their needs.
“As the pandemic evolved from a health crisis to a financial crisis, many people have experienced a change in their spending habits,” Gugnani said. “Partnering with Affirm has allowed us to continue to provide our customers with high-performance beauty multitaskers while still accommodating their financial changes.”
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