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We have touted paying close attention to the little things in your marketing on several posts. Today we bring you another case study that was not only simple but overlooked as an option.
Before I get into what was done and the results I first need to set the stage.
A company that sells physically shipped goods through a direct response style sales funnel.
On their checkout page they have 3 options. Basically buy 1, 2, or 4 of this particular product and get additional savings per unit.
The product they sell is consumable so it will run out requiring the customer to buy more.
Along with the three options, each comes with a choice to be enrolled in an autobill/autoship program. You know that fun and amazing recurring continuity program that we all love.
The continuity program was sold as a 10% savings club. Buy it today and when we bill you later and ship you the product on the refill you will save 10%.
On average 35% of customer chose the recurring subscription with the savings attached to the recurring months orders.
Customer value was good and so were the re-bill rates.
Now here is where the magic comes in. You are going to be shocked at how simple and obvious this seems but wait until you see the results.
On the subscription that was sold as 10% savings club. Instead of paying full price today and saving on additional billing. We tested it by applying the 10% savings on the checkout page, so they save 10% day 1 by joining the subscription program.
Now I told you this was going to be obvious. You might be thinking… “Of course offering 10% would increase the conversion rate.”
The magic comes from by HOW MUCH it actually increased.
Before applying the 10% savings on day 1, we mentioned that the take rate for the continuity was on average 35%.
After the test and applying the 10% on day one the subscription take rate JUMPED to a whopping 66% of all customers that purchased took the additional savings and joined the subscription program.
Obviously the initial customer value would decrease from the savings but it more than makes up for it with the continuity re-bills.
*Note: The advertised price was based on a 4 unit purchase and the 10% savings was based on that advertised price.
Side bar testing idea. To help increase the customer value on day 1 we are going to test the subscription price as being the same as the advertised price, if they choose not to join the subscription program the price will be of course 10% higher.
Remember our goal to increase conversions is to reduce friction points for the potential customer. In this case, with the increase in conversion rate on the subscriptions, we need to turn our focus to keeping these customers happy, making sure orders go out on time, and how to get MORE people into the funnel.
We hope this sparks a few ideas to look at in your marketing. We have done plenty of extra options on checkout pages and they seem to work pretty well.
See what you can come up with for on page checkout options coupled with some additional savings. Report back here with your findings.
If you would like to discuss how we may be able to help you increase your online conversion rates, schedule your complimentary strategy session by sending us an email at firstname.lastname@example.org