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dmi:Design Value Award Winner - Philips Lumea
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dmi:Design Value Award Winner

 

 

 

Lumea Subscription for a Home Intense Pulse Light Device

Philips - Philips Experience Design, Philips Beauty

 

Initiative/Objective
Intense Pulse Light (IPL) is an effective way to remove and remain hair-free for long periods of time. However, there are several barriers that limit consumer purchase, usage, and adherence in order to experience its benefits. The primary purpose for this project was to increase the penetration of Philips’ most effective home IPL device and help users properly use and adhere to the treatment to achieve promised results. The project focused on defining, developing, and implementing a subscription-based service that provides consumer access to a home IPL device, tailored multi-touchpoint coaching, an option for cancellation, or purchase if permitted by local regulations.

Royal Philips is a leading health technology company focused on improving people's health
and enabling better outcomes across the health continuum. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care.

The project has been running in an iterative and agile way, using design thinking methodologies and experimental design within a new business creation innovation funnel. The funnel consists of four stages: opportunity-business fit, problem-solution fit, product-market fit, and scale. For each stage, several design thinking cycles were completed to assess the impact of the design implementation for the user and business.

Philips has experienced benefits in that it has gained increased penetration with the Lumea subscription service by unlocking a new target group of younger women who had not considered home IPL devices, primarily because of the price-point barrier. The majority of current buyers (68%) have indicated they would not subscribe to the service; 60% of current service subscribers would not purchase the device. By removing the traditional middleman retailer and engaging directly with users, the subscription service is 10% more profitable, and it opens new cross-sell and up-sell opportunities for the business.

The process has unlocked new business models for the company as well. While designing the service, a strong and scalable backend system was created that has enabled other businesses within the organization to explore and create subscription services in order to foster long-lasting relationships with customers.

In its shift to a circular economy model, when a subscription is cancelled, the returned device goes through a process of cleaning and testing. It will then be available to consumers at a lower subscription price with the same benefits. Through this process, the home IPL devices have a longer lifecycle, and they reduce the environmental impact by 40 percent.

By lowering the barriers and allowing women to access and experience home IPL devices by themselves, the decision journey of the subscribers is much shorter (less than one month) as compared with the decision journey of buyers (more than six months). By connecting directly to the users, the subscription service has allowed the organization the opportunity to proactively learn and act on challenges along the user journey, leading to overall better user experiences.

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