How CROSSNET increased SMS sign-ups by 43.8% with Fondue

"Working with Fondue was a game-changer for us. The optimized CashBack offer helped increase our email and SMS sign-ups while reducing discount payouts. It was a win-win situation for our customers and us."
­- Chris Meade, Co-Founder of CROSSNET

About

As kids in a peaceful corner of Connecticut, brothers Chris Meade and Greg Meade and their best friend Mike Delpapa were always looking for new ways to entertain themselves. In 2017, they reunited and created CROSSNET — the world’s first four-way volleyball game inspired by the old schoolyard game of four square. 

Fast forward to 2023: CROSSNET has scaled into one of the fastest-growing backyard games, is sold at 3,500+ retailers, and has surpassed 8 figures in annual revenue.

Challenge

Increasing first-time purchases without cutting profits

With CROSSNET's skyrocketing success, the team sought new ways to scale their DTC channel while increasing customer lifetime value. 

At the time, CROSSNET offered a standard 10% off coupon code to grow their email and SMS lists. This coupon code made their email and SMS welcome flow one of CROSSNET's most successful acquisition channels. But, unsurprisingly, offering this discount to every shopper ate into profits. 

The team needed a solution that could drive list growth as effectively as a welcome coupon — without undermining their product's price point.

“CROSSNET is all about creating fun and engaging experiences. Optimizing our welcome flow is our best opportunity to make a great first impression and convert shoppers into loyal customers.”

Solution

Fondue swaps coupon codes for more cost-efficient CashBack

CROSSNET noticed a wave of brands swapping coupon codes for CashBack with Fondue and realized this solution had the potential to not only grow their list — but also to increase net profits. Here’s how: 

1. Not all customers need a discount to purchase, leaving some CashBack unclaimed. 
2. As a result, discount payouts go down, and profit margins go up. 
3. Customers then redeem their offer as either cash or a gift card to CROSSNET. 

Even better, Entrepreneur reports that shoppers are more likely to complete a purchase when brands offer cash as a reward instead of traditional coupons — and the CROSSNET team would soon see this in action for themselves. 

When it came time for onboarding, Fondue’s integrations with Postscript for SMS and Klaviyo for email resulted in a rapid, no-code implementation. From there, the Fondue team managed virtually all campaign setup and A/B testing on CROSSNET’s behalf while providing detailed reporting on CashBack uptake and redemption. 

Fondue ultimately found that $20 CashBack resonated best with CROSSNET shoppers. Since then, the DTC brand has swapped all 10% off codes for $20 CashBack.

‍"Fondue has been instrumental in putting money back in our pockets. We have found that less than 50% of people actually opt in for their CashBack. Discounting is down. Profit is up."

Results

CROSSNET cuts discount payouts by over 50%

Undeniably, more shoppers resonated with CROSSNET’s CashBack incentive than traditional discounts. Since implementing Fondue, CROSSNET has unlocked higher profitability and list growth, including: 

• Discount payouts dropped by 50.8%
• SMS sign-ups increased by 43.8%
• Email sign-ups grew by 15.9%

 Looking forward, CROSSNET has big plans to expand to Canada. And Fondue is already playing a big part in this rollout. “We are seeing massive list growth,” Chris explains – and having this built-out email and SMS list ready for launch day will guarantee this program is a success.

"Fondue continues to exceed all of our expectations. Our 2023 goal was to cut discounts by 50% and to save in every possible area on our bottom line. Fondue has been instrumental and almost too good to be true sometimes. Beyond thankful for the team.”