Q&A: SmileDirectClub CMO Talks Return to Physical Retail

With mask mandates and COVID-19 restrictions being lifted across the country, teledentistry company and oral care product manufacturer SmileDirectClub is making its reentry into physical retail.

Path to Purchase IQ talked with the company’s chief marketing officer, John Sheldon, who shared how SmileDirectClub has shifted its business as well as provided an update on its SmileShops, an in-store retail experience that temporarily shuttered at the onset of the pandemic. SmileShops originally launched at retail locations, including CVS Pharmacy (which has since ended the in-store offering), and has expanded to new locations, such as salon suites.

P2PIQ: What's the status of your SmileShop retail footprint? Does it currently depend on state/local regulations, or have most shops reopened after initially closing during the pandemic? 

Sheldon: Before the pandemic, we had more than 400 SmileShops worldwide with varying utilization rates. Stay-at-home orders at the onset of the pandemic forced us to close the vast majority of our SmileShops and operate 90% of our business through doctor-prescribed impression kits, which allow customers to begin their treatment journey from the safety and comfort of their own home. As local mandates evolved and consumers returned to some of their pre-pandemic habits, we have had the opportunity to rebuild our SmileShops from the ground up. 

While we're being more intentional with our retail footprint moving forward, we are seeing a return of customers wanting a positive in-person experience in our shops, as well as a broader trend toward personalized, in-store experiences overall. As a result, we are planning to slowly open more SmileShops in the coming months, where warranted, for incrementality in the business and see particularly strong opportunities in some key markets such as Long Island, New York, to add further growth. 

We’re excited about expanding our retail footprint, as our consumers gravitate toward the kind of Apple Store-like experiences that our SmileShops offer. We are very proud of the higher conversion rates that the SmileShops provide and the tens of thousands of 5-star reviews we have received (4.8/5 stars on Google) that serve as a testament to our incredible team.

P2PIQ: How did SmileDirectClub shift to fit changing consumer behavior brought on by the pandemic?

Sheldon: As a telehealth leader, we were uniquely equipped to support customers throughout the pandemic. When COVID-19 first hit, we encouraged our customers to begin their journey safely with doctor-prescribed, easy-to-use at home impression kits. While at home, customers were still able to contact our customer and dental care support teams and a network of licensed doctors for 24/7 support. This was a huge benefit to those who were under stay-at-home orders and those who did not feel comfortable returning to their usual, in-person activities. 

We continued growing and innovating our telehealth platform as consumers became more comfortable with telehealth services, with many even coming to prefer it over traditional visits to the orthodontist. As a result, we added new features to our platform including a video chat capability and a mobile app that allows users to track their progress, receive notifications when it’s time to switch, and chat with professional dental teams anywhere, at any time. 

The pandemic allowed us to realize the importance of meeting customers where they are spending the most time-consuming media. As a result, we invested more heavily in connected TV (CTV) and over-the-top (OTT) devices, reallocating spend from traditional linear TV. Because these platforms are digital in nature, we see significant opportunities in terms of audience segmentation and targeting. Such channels allow us to strategically market to both our core and niche customers including parents of teens, males, and high household income customers. 

P2PIQ: What will SmileDirectClub's return to retail look like? Anything new and exciting? 

Sheldon: Today, we currently have over a hundred SmileShops where customers can schedule a free appointment. During a 30-minute SmileShop visit, a SmileGuide will take 3-D images of a customer’s smile, photographs of their teeth, and collect other dental and health history used by the doctor to determine if clear aligner therapy is right for them. Customers can ask questions about the process and treatment plans. Many SmileShops are open seven days a week at more accessible hours than a traditional doctor’s office and available across the country. In the coming months, we’re excited about expanding our footprint to new locations, which will allow more opportunities for customers to be our advocates and share their experiences with others, beginning at the SmileShop and throughout their smile journey.