Crossnet Increases SMS Sign Ups by 43.8%

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About

As kids in the peaceful corner of Connecticut, Chris and Greg Meade, along with their buddy Mike Delpapa, were always on the lookout for new ways to entertain themselves. In 2017, they were inspired to come back together to create CROSSNET – the world’s first four-way volleyball game inspired by their old schoolyard game of four square. 

Fast forward to 2023, CROSSNET has grown into one of the fastest-growing backyard games, can be found at more than 3500 retail locations, and has surpassed eight figures in annual revenue.

"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."

- CROSSNET

Challenge

Despite the success CROSSNET was having across all of its retail locations, they were looking for new ways to increase profitability from its DTC channel. 

The email and SMS welcome flow is one of CROSSNET’s most successful acquisition channels, but no surprise here – offering discounts upfront to every shopper was eating into profits. They needed a solution that would continue to drive email and SMS list growth and increase customer lifetime value.

"Our email and SMS lists have been a great acquisition channel for us, but we’ve been struggling with low-profit margins."

- CROSSNET

Solution

CROSSNET noticed a new wave of brands had begun using Fondue, swapping coupon codes for CashBack. At the time, CROSSNET offered a standard 10% off coupon code to grow their email and SMS lists. 

Swapping out their coupon code with a CashBack offer had the potential to not only grow their list but also increase net profits. Here’s how! 

Only some customers require a discount to purchase, leaving some CashBack offers unclaimed. That means discount payouts go down, and profit margins go up!

And for those customers that claim the offer, they have the option of redeeming in the form of Cash or Gift Card.

Studies also show that shoppers are more likely to complete a purchase when Cash is offered as a reward instead of traditional coupons. With this in mind, CROSSNET reached out to Fondue to get started.

Strategy

Fondue’s expertise and integrations with Postscript for SMS and Klaviyo for email resulted in a super fast, zero-dev onboarding experience for CROSSNET.

Since there was zero impact on CROSSNET’s operations, the Fondue team was able to manage the entire setup and execution of the campaign.

After some experimentation, Fondue replaced the existing $10 off popup with a new $20 CashBack offer. The goal was simple – increase signups and overall profit per order.

Detailed reporting of CashBack uptake and redemption was provided regularly throughout the entire lifetime of the campaign.

Results

The results started to come in, exceeding all expectations. CROSSNET reduced discount payouts in their welcome by an incredible 50.8%, which had an immediate positive impact on their profit. Email and SMS signups also increased by 15.9% and 43.8%, respectively.

It was clear more shoppers resonated with the CashBack offer. With the increase in signups and profit margins, CROSSNET continues to leverage CashBack as an incentive to increase customer lifetime value.

"Working with Fondue was a game-changer for us. The optimized CashBack offer helped increase our email and SMS signups while reducing discount payouts. It was a win-win situation for our customers and us."

- CROSSNET

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