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Dr. Squatch - $200M Growth Story
I spent 20 hours dissecting how Dr. Squatch, a men's personal care brand, rockets from zero to a staggering $200+ million a year in sales.
Growth Classics
March 30, 2024
The Soapy Underdog: Dr Squatch’s $200 Million Growth Story
I dissected how Dr. Squatch, a men's personal care brand, rockets from zero to a staggering $200+ million a year in sales.
Strap in.
At first glance, I breezed past posts talking about Dr. Squatch, mistakenly slotting them into the "just another men's brand" category.
But then, their ads began to catch my eye, weaving their way into my daily scroll.
It wasn't long before my skepticism turned to astonishment.
Imagine my surprise when I learned they had skyrocketed from $5 million to a jaw-dropping $100 million in sales in 24 months, now cruising past the $200 million mark.
Suddenly, Dr. Squatch wasn't just another name in the game—they were setting the standard for some of the most captivating paid ad creatives going.
Trust me, this is a story you'll want to hear.
Join me as we dive deep into the meteoric rise of a brand that's redefining paid creative.
Here is what you can expect from the breakdown:
Founding story in 30 seconds
The agency that took them from $5-$100M in sales in 24 months
Why message market fit & jobs to be done unlocked insane growth
Creating a viral video, YouTube sponsorship and Super Bowl ADs
Irresistible offers, Drip campaigns and Scroll-stopping Meta ads
Here is the founding story in 30 seconds…
It's 2013, and Jack, fueled by insights from "The Four Hour Workweek" and "The Lean Startup," is on a quest.
He's not just looking to create a product; he's looking to solve a problem rooted in his own experience battling with skin issues.
This journey leads him to discover cold-processed soap at a farmer's market, a simple choice that marked the beginning of an extraordinary journey.
Men's personal care at the time wasn’t fragmented (and still isn’t in the same way the women’s market is).
Big names like Procter and Gamble have held the reins for too long.
Jack saw an opportunity not just to carve out market share but to change the way men think about the products they use on their bodies every day.
The early days were all about grassroots efforts—going door to door, for direct interaction with boutique shops.
They bootstrapped, pouring every dime back into growing their online presence.
Jack was at a crossroads; he didn’t just want to continue with slow growth and run a lifestyle business. He either wanted to take on money and swing for the fences or shut down the business altogether.
He chose to go big.
This is where the story of scale starts.
Before reaching our current chapter, Dr. Squatch tapped into the power of Facebook ads as their spearhead strategy for customer acquisition. This approach didn't just nudge their sales upward—it nearly tripled them, catapulting the brand into profitability with remarkable speed. This success was largely thanks to their commitment to keeping overheads lean.
Adding to their innovative streak, Dr. Squatch introduced a subscription model, a pioneering move in 2014. Soap and shampoo subscriptions were unheard of, leaving many to wonder about their viability. Yet, Jack, with his finger always on the pulse of forward-thinking business strategies, recognised that the true essence of sustained success lies in retention.
Breakthrough moment $5-$100M in 24 months
In 2017, a bold partnership was formed between Raindrop Agency and a promising direct-to-consumer (D2C) brand, Dr. Squatch.
This wasn't just any soap company.
Dr. Squatch had a vision: to revolutionise the men's personal care industry with natural soap that was not just a product but a statement.
First, they faced a daunting question:
How could they make men care about natural soap?
Who are Raindrop?
“The Leading Brandformance Agency In the World.”
Why pay attention this?
#1 YouTube TrueView Ad of 2020 (YouTube Leaderboard)
2 Emmy Awards
#1 Performing Super Bowl Ad of 2021
$750,000,000+ in sales generated
13 campaigns with over 100m views online
Teamed up with the best DTC brands such as Dr. Squatch, Native, Manscaped, P&G and more
The journey began with a deep dive into the brand's essence.
Dr. Squatch's various messaging attempts had left them without a clear direction.
Raindrop's Brand Development process was the compass they needed, aligning the brand's personality, mission, and messaging to resonate with their core audience.
Two key concepts that unlocked growth:
Before getting into this, I wanted to define two concepts that will be really helpful to use as a frame for this whole section:
Job To Be Done (JTBD)
Message Market Fit.
Job To Be Done (JTBD):
Source here
JTBD zooms in on the real reasons people buy—beyond features or benefits. It's about the problem they're trying to solve.
Harvard's Clayton Christensen illuminates JTBD as understanding the "job" for which customers "hire" a product.
It's a mindset shift: see your product as a solution to a specific need, focusing on the outcome the customer seeks.
Link to learn more here
Here is a useful framework to decide if something is solving a customer job or not:
Source here
Not only does Dr Squatch nail the jobs it solves for but it does it with personality which really allows them to stand out:
How message-market fit transformed Dr Squatch’s marketing overnight.
“Product market-fit can’t exist without message market fit”
To dominate your market, there are three critical tiers of message-market alignment you need to master:
“The best messaging captures all three levels:
1. Value. What's in it for the buyer? Which problem do you solve?
2. Unique value. What's the value only you can deliver? What's your onlyness?
3. Point of view. What do you believe in? What are your values?
If you don't pay close attention to message-market fit, your growth will stall despite having a product that might fit the market.
Message Market Fit ensures your product's message resonates perfectly with your audience's needs and expectations.”
Source here
Achieving this fit means your communication is clear, compelling, and directly addresses how your product solves the customer's job.
The Break Through Campaign.
The real game-changer came in the form of an Anchor Video.
A 3-minute explainer, crafted for social media, starring the comedic genius James Schrader. This wasn't just any advertisement; it was a viral sensation.
With over 120 million views and 100,000 shares across YouTube and Facebook, it catapulted Dr. Squatch into the social media stratosphere.
Why this video has 120M views:
In this section i’m going through the exact transcript to breakdown why it’s been successful.
Hook 🔽
“Listen up the soap you shower with, it’s shit.
You probably haven't even questioned what bar soap you lather up with let's face it most guys don't.
They're still using whatever bar their mommy bought for her little man is that what you want to smell like mama's little man but now you can upgrade your shower game with Dr. Squatch natural soap.
I'm talking about natural nourishing cold-pressed hand-cut soap for men. Men who use their hands men who build things men who open the pickle jar on the first try men who catch foul balls without spilling their beer.”
(Target Audience Identification)
The copy precisely identifies its target audience - Dr. Squatch speaks directly to those who thrive on the genuine and raw aspects of life. It's for men who find a deep resonance with nature's ruggedness, the joy of hands-on creation, and the simple thrills of physical existence. This message isn't about clinging to outdated stereotypes but celebrating a masculinity that's rooted in strength, resilience, and an innate connection with the natural world.
Dr. Squatch honours these ideals by offering a product that's as authentic and unpretentious as the men it's designed for, emphasising a lifestyle that values action and a deep bond with the earth.
Sell the transformation 🔽
“You won't just smell good either your skin will be healthier and more nourished dare I say soft.
Oh men aren't supposed to have soft skin yeah well men weren't supposed to cry during movies and then they made the movie Rudy.
You want to smell like the forest boom pine tar we've got you.
You want to smell like the sea boom nautical sage we've got you.
You want to smell like you just got off a boat in the Caribbean boom bay rum we've got you and with six more scents we've got you covered no matter what kind of man you are.”
(Sensory Appeal)
This brilliantly capitalises on the power of sensory marketing, offering an evocative array of scents such as "forest boom pine tar," "sea boom nautical sage," and "boom bay rum." This approach isn't merely about listing available products; it's an invitation into a vivid sensory world.
By infusing their descriptions with such vivid imagery, the brand transcends the mundane act of purchasing soap and elevates it into a selection of immersive experiences.
The promise isn’t just of a superior soap; it's a journey, a moment, an escape.
A real change from the vanilla options available in store today.
Educate 🔽
“Now you're wondering why have I been doing it wrong for so long. During the first world war big soap started taking out all the natural ingredients to make production cheaper and faster they replaced all the natural stuff with chemicals.
Chemicals like sodium lauryl sulfate, parabens, and dioxane but there's good news. We make our soaps with natural ingredients from the earth.
Ingredients like oils, plants, goat's milk, greek yogurt, oatmeal, shea butter, and citrus.
Now, turn your shower game up to 11 with the smooth lather of gold moss or the exfoliating woodsy bliss that is pine tar.
Get ready to step out of the shower feeling alive. Still not sure here's a couple of reviews from real customers.”
(Problem-Solution Framework)
By spotlighting an issue that consumers may not have been consciously aware of, it cleverly manufactures a need for its natural soap alternatives.
This approach not only educates the audience but also positions the product as a much-needed solution, effectively stimulating demand where there might have been none.
“Joseph S says this is the perfect bar of soap, it's like it was handcrafted in the northwest forest by beautiful tiny elves.
Oh tiny elves isn't enough for you well here's another review from Michael A it makes you feel like you just stepped out of a mountain stream and squatch was there to hand you the towel.
Time for you to get the right tool for the job because you're worth it my friend.
We ship it right to your door and with a 100% satisfaction guarantee, if it's not the best bar of soap you've ever used it's on us.”
This YouTube ad nails it by painting a super vivid picture with its storytelling. Imagine soap made by elves in a forest or feeling like you’ve just chilled in a mountain stream – pretty cool, right?
It's also got a fun vibe going on, making the whole thing feel like a chat with friends rather than a hard sell. Plus, when you hear folks like Joseph and Michael bigging it up, you can't help but want in on the action.
That promise that if it's not the best soap you’ve ever used, it’s on them. It’s a blend of imagination, trust, and a worry-free promise that really makes you wanna hit that buy button.
Does this campaign remind you of anything?
The campaign “SMELL LIKE A MAN, MAN. OLD SPICE” Launched in 2010 and immediately went viral.
“This campaign was driven be a key insight: 60% of body wash purchases are made by women. How could we provoke a conversation between couples? "The Man Your Man Could Smell Like" was created to do just that.” - Source here
It featured actor Isaiah Mustafa, who spoke directly to the camera in a humorous and over-the-top manner. The ads were full of absurdity and hyperbole, showcasing Mustafa in a variety of humorous and outrageous situations.
This was not only a commercial hit, but also won several awards, including the Cannes Grand Prix and the EFFIE Award for marketing effectiveness.
It was able to increase the sales of Old Spice products by up to 107% in a short amount of time.
Link to the Ad here
Unlock the explosive potential of your product's demand by mastering two pivotal strategies.
First, delve into the core reasons consumers choose your product—understand the precise jobs they're "hiring" it for.
Then, craft messages that resonate on a profound level, tapping into the very thoughts and aspirations that drive your audience.
By aligning your product's promise with your customers' innermost desires and conversations, you're not just selling; you're igniting a demand that spreads like wildfire.
How Dr Squatch used this You Tube video to scale fast.
This AD won DrSquatch a “Shorty Award”
“The Shorty Awards are awards for outstanding and innovative work in digital and social media content by brands, advertising agencies, and creators.” - Link to shorty awards here
The Objective:
“Educating men on the benefits of using all-natural products compared to store-bought brands proved challenging. Further, making high-quality, all-natural products in America resulted in higher prices than what men are used to paying.
These factors made it difficult for Dr. Squatch to scale in the early years.
In 2019, Dr. Squatch went "all-in" on longform YouTube ads. The team set lofty goals to maintain their ROAS year-over-year while pushing their YouTube budget to $2 million - more than 30 times their spend in 2018.
Their blended CPA goal was $18-20; and knowing Google Search would lower their blended CPA substantially, they set a YouTube CPA goal of $35 for 2019.
Dr. Squatch also decided a 20% average view rate was a strong goal. At that point, viewers would have watched over 40 seconds of the 3.5-minute video, which was extremely valuable due to the resulting brand exposure.
Dr. Squatch also wanted to double their subscription service from 17,000 to 34,000 active subscribers; and acquire 100,000 new customers across all channels in 2019.”
The Results:
“Thanks to the success of this YouTube campaign, Dr. Squatch exceeded their initial annual budget by over $1 million in YouTube spend while tripling their new customer acquisition and subscription goals for 2019, exceeding 300,000 new customers; and ending the year with 75,000 active subscribers.
Dr. Squatch finished 2019 with a YouTube ROAS of 0.98, exactly the same as 2018, but at nearly 50 times the volume of spend - a huge success.
On YouTube, the Hero video finished the year with nearly 44,000 conversions and a CPA of $33.70, more than a dollar below the $35 goal the team set.
Dr. Squatch spent almost $1.5 million on this YouTube campaign (48% of the annual YouTube budget), with over 260 million impressions, a 0.04% CVR, and a view rate over 25% (compared to the goal of 20%).
The video currently has over 120 million views on YouTube.”
Source of results here
How to re-purpose content so that it works again, again and again.
The original video firmly established Dr. Squatch in the market, and they soared past this achievement with a record-breaking commercial in 2020, amassing 90 million views within three months. This surge was ingeniously sparked by blending fresh scenes with proven favourites from the initial video.
They also have created hundreds of short versions which have pumped out across their social channels. Not just videos but images and memes as well.
Takeaway:
If you’ve got a winning piece of content from a few years old, don’t be afraid to re-fresh that content and repost it, as in that time the platforms will have brought new audiences to the platform and this can again become a winning piece of content.
The Dr. Squatch Super Bowl Spotlight
Progressing along their marketing journey, Dr. Squatch secured a slot during the 2021 Super Bowl broadcast, catapulting the brand into the limelight and expanding its reach even further.
They did film a whole new video for this but it did encompass some of the same script.
Takeaway:
Once you have an anchor video for a brand it creates so many possibilities for future variations.
Link to Super Bowl ad here
Link to podcast about the decision to do the Super Bowl AD here
Now they have the anchor video.
How did this translate across their customer touch-points?
Website:
Influencers they use:
They work with world famous comedians such as Stravros Halkias to promote their bars.
Link to his instagram here
Link to Insta post here where they posted a clip from an amazing event they hosted.
The Dr. Squatch comedy show at @thecomedystore in LA.
This is an amazing example of a real life brand activation that perfectly fits with the target audience.
Plus they get so many amazing, funny clips that are super shareable online.
CRM:
Ads:
Leveraging You Tube sponsorship to scale:
YouTube organic video sponsorships involve content creators incorporating product mentions directly into their videos, as opposed to traditional auction-based ads. This method is more integrated and authentic, with the endorsement coming from the creators themselves, which can significantly enhance the product's perceived authority and credibility.
The personal touch in organic sponsorships tends to resonate more with viewers, making it a powerful tool for building brand trust and engagement. Such sponsorships align well with the audience's interests, creating a more engaging and relevant promotional experience.
Dr. Squatch began sponsoring YouTube videos, with the first being titled "I Went Vegan For a Month | My Experience" on the Repzion channel.
To date, it has worked with 53 Thought Leaders, predominantly appearing in YouTube content related to general knowledge. This strategy has yielded over 100 million views across their sponsored content, signifying a substantial investment into YouTube paid marketing.
One of the brand's most successful sponsorships was with Donut Media, a video titled "10 Classic Muscle Cars You can Still Buy CHEAP," posted on September 4, 2020. This video alone garnered 987,105 views and 36,958 likes, featuring a promotional code for Dr. Squatch products right at the start.
Link to source here
Irresistible offers, Drip campaigns and Scroll-stopping Meta ads
To frame this section i’m going to use the value equation from Alex Hormozi’s $100 Million offer book (link) to look at the offers that Dr Squatch offer which help frame his section.
The top half of this equation is divided by the bottom.
Now you know the levers you can pull to maximise perceived value by the consumer.
It gives you the opportunity to put a plan in place to maximise the top and reduce the bottom half.
Lets take a look at each section:
Dream outcome:
Through it’s messaging and creative that i’ve explained above, I hope it’s clear that Dr Squatch does an amazing job of selling the transformation and the dream outcome of the product.
Perceived likelihood of achievement:
Dr Squatch has built up an impressive amount of social proof in the form of reviews but also through user generated content via social media, CRM and an impressive referral scheme.
Time delay:
Luckily using soap means it’s an almost instant experience after a short delivery time.
Effort & sacrifice
This is a very low effort product, however you do pay a premium for natural products. So this is where it’s crucial for Dr Squatch to:
Maximise the top of the value equation to maximise the output of value
Reduce the sacrifice made by customers in payment by giving the customer an upfront offer to entice them in.
Bonuses & Guarantees:
These are the bits that can seal the deal. How does Dr Squatch do this?
Special subscription benefits:
Sudisfaction Guarantee
“We understand that everyone is different — we're happy to help you find a replacement scent that you absolutely love. If we're not a great match, no hard feelings! We'll refund your order!
If you aren't 100% satisfied with your Dr. Squatch products, please contact us within 30 days of your order delivery date!”
What offers does Dr Squatch have?
Let’s start with the CRM:
Once I signed up for their email list I got a rapid succession of offers which varied in the offer delivery, the way you’d redeem them and on the products involved.
This looks like they start off pushing subscription as this has the highest lifetime value potential.
Then tried a one time order offer and also an exclusive SMS sign up offer.
I’ve just taken screenshots of the offers below, but these emails also included information modules such as this:
Email 1 - Day 1: Welcome to Dr. Squatch, Squatch Nation!
Email 2 - Day 2: Don't miss out
Email 3 - Day 2: NEW: Save Up To 30% On Soap Subscriptions
Email 4 - Day 3: you’ve got nothing to lose
The website:
There a few options you have as a consumer:
Build your own bundle (Incentivises first purchase and maximises AOV with scaling incentives)
Subscription offering (best value)
One time order (most expensive)
Build your own bundle:
Psychological Principles this taps into:
Commitment and Consistency: Once customers start building their bundle, they are more likely to follow through with the purchase to remain consistent with their initial action of engagement.
Endowed Progress Effect: The progress bar that fills as customers add more items can make them feel a sense of achievement. This effect increases as they approach the next 'reward' threshold, encouraging them to add more to their bundle.
Reward System: Offering discounts and free shipping at different price points incentivises customers to spend more to reach those thresholds, tapping into the reward-seeking behaviour.
Decoy Effect: The intermediate offers may act as decoys, making the highest offer with the most rewards seem like the best value for money.
Subscription offering:
Psychological Principles:
The Paradox of Choice: By limiting the number of options (6, 3, or 9 bars), the subscription service simplifies the decision-making process, reducing the paralysis that too many options can create.
Value Proposition: The offer of free shipping on all orders and the savings highlighted for larger orders creates a strong value proposition, encouraging customers to perceive that they are getting more for their money.
Scarcity & Exclusivity: Subscriptions often have an element of exclusivity, with subscribers having access to products or deals non-subscribers don't get. In Dr Squatch’s case this is free shipping, customisation and exclusive access to new products
Rewards and Incentives: The savings on larger subscriptions act as a reward for committing to more significant purchases. Subscription also offers the largest discount available for purchase and ongoing subscription transactions.
Why subscription is good for business:
AOV: Highlighting the savings for larger orders motivates customers to increase their order size, thus raising the AOV directly.
CLV: Subscriptions by nature increase CLV since customers make repeated purchases over a longer period.
Customer Acquisition Costs (CAC): A strong subscription offering can reduce CAC by spreading the acquisition cost over more transactions.
One time order:
This is the least appealing offering as Dr Squatch offer the lowest discount for first purchase one time order especially for smaller baskets and no free shipping under £45. This incentivises customers to go bigger with their first order.
They mitigate customers being put off with their money-back guarantee:
“We understand that everyone is different — we're happy to help you find a replacement scent that you absolutely love. If we're not a great match, no hard feelings! We'll refund your order!
If you aren't 100% satisfied with your Dr. Squatch products, please contact us within 30 days of your order delivery date!”
Now we have the offer.
Let’s check out their paid ads.
First step of analysing Dr Squatch’s Meta ADs was checking out their Facebook ads library and filtering by active ads. Some big results!
Screenshot of Meta account ads library.
Link to Meta ads library here
There are over 740 ads live in the account right now and that doesn’t take into consideration variations of the same AD.
They are doing a LOT of testing
They are likely spending a lot of money on Meta
Before I show you the ads I’m going to highlight their key themes:
Picking an enemy:
Dr Squatch love to pick a fight with the mainstream soap companies, highlighting their insufficiencies and then selling the value of going with them
Behind the scenes:
Dr Squatch factory and the process they use for making the soap is a combination of ASMR and impressive automation. Taking people behind the scenes is a powerful way of creating intrigue and showing the full transparency of the production process.
Founders story:
This doesn’t always work as the customer of a product doesn’t always match up with the founder of the company, so this isn’t always an effective theme. However in the case of Dr Squatch, the founders story is one of a man who had a skin condition which was irritated by mainstream products and wanted to find a natural solution that worked for them.
Female infatuation:
This is a theme that is also used by brands such as True Classic (example here), it uses a comedic tone to show how women will react to you when you use this product. An example snippt from an AD from DR Squatch is “I would literally jump on any man wearing this”, say what you want about that hook, it’s stopping the scroll haha.
Offer:
This one is obvious but Dr Squatch not only do the classic static and short form creative for offers but they also do amazing video ad creatives which really drive home the offer and put a smile on your face at the same time. One of the most common offers is buy 3 soaps and get 3 free.
Now we have identified the key themes, i want to show some of the video hooks.
Hook 1: Female infatuation
Hook 2: Picking an enemy
Hook 3: Selling the offer:
Key takeaways:
Doing the hard work up front to find out what jobs your customers are hiring you for and then understanding the messaging that speaks to them at the deepest level is crucial to success
Comedy done right can send your brand viral, fortune favours the bold
Remember what you’re competing against on the feed. Don’t be wallpaper, create content that stands out
You Tube sponsorship is a unique way to hijack a creators credibility to promote your brand in an authentic way
Don’t just think about paid ads in terms of features, benefits and hook types. Think about your ads in terms of outcomes, transformation, themes and narratives. Master the art of storytelling if you want to sell out.
When selling in a product to a market that isn’t completely sold on the value or efficacy of the product (e.g. Natural personal care products), having a good offer mechanic is crucial, you can have the best content in the world but if you can’t get consumers over the line it’s useless
Social proof 🔽