How Beekman 1802 used CashBack to increase revenue 10x per email

“Since adopting Fondue, only 13% of customers have chosen to redeem their CashBack offers as hard cash. For us, that translates to six figures of value in the last six months.” ­- David Baker, Chief Digital Officer at Beekman 1802

About

Beekman 1802 is a doctor-founded skincare brand on a mission to create a kinder world. Inspired by the 200-year-old Beekman Farm, every product features nutrient-rich goat milk as a key ingredient, with Clinically Kind® formulations that are microbiome-friendly and safe for sensitive skin. Beekman retails through their eCommerce site, Ulta Beauty, QVC, and other leading retailers across the country. 

Challenge

Coupon codes are a common tactic, but they harm your brand’s bottom line

Between inflation and stagnant wages, more and more consumers want to stretch every dollar. That means looking for deals. 

Like many DTC brands, Beekman 1802 appealed to price-sensitive shoppers by offering coupon codes. But David Baker, Chief Digital Officer at Beekman 1802, realized that the discount cut into its profit margin for every purchase this strategy captured.

The Beekman team needed a new discounting solution to drive sales without hurting their bottom line — and they discovered CashBack as a strong contender. They initially experimented with gift cards but soon realized they’d need a dedicated tool to scale this ongoing strategy. 

David eventually vetted a few different CashBack tools for Shopify, and Fondue stood out right away. The platform was simple and intuitive, and from his first conversation with the Fondue team, David felt they understood Beekman’s needs.  

“The more I learned about the CashBack model, the more I realized the power Fondue had. It’s very similar to what's worked in the offline space, just brought into the Shopify ecosystem.” 

Solution

Thanks to Fondue, Beekman 1802 ditched flat-rate coupons for more cost-efficient CashBack discounts

David presented Fondue to the board of Beekman 1802, explaining how CashBack could win back profits from their traditional coupon strategy. Put simply, CashBack is a win-win way to discount: 

1. Since CashBack is redeemed post-purchase, not every customer follows through to claim their money. 
2. Beekman can then reinvest those savings into higher-value CashBack offers. 
3. Customers enjoy better offers, and Beekman inspires even more purchases. 

The board immediately saw Fondue’s potential and gave their green light. From there, David ran an A/B test on Beekman’s welcome offer pop-up. How would CashBack compare to their typical flat-rate discount? 

The results were there — the CashBack offer delivered over 10% more revenue growth than coupons. David had the evidence he needed to explore how Fondue could fit into upcoming holiday sales, starting with Black Friday and Cyber Monday. 

In the lead-up to BFCM 2023, David pushed out a Fondue offer by email to Beekman’s entire audience rather than as part of their welcome series. The results were staggering. Beekman typically saw 10 cents (or less) in revenue per email. But after sharing their CashBack offer, RPE jumped to just under a dollar. 

It was official: Fondue worked. David had the evidence he needed to go all in on making Fondue part of Beekman’s holiday sales and strategy to boost AOV. 

“I presented a conservative estimate to our board of how much we could save with Fondue, and they immediately saw the value. Today, Fondue has helped us surpass that estimate by far.” 

Results

Fondue helps Beekman 1802 transform 50% of every CashBack offer into profit

Since switching from coupons to CashBack with Fondue, Beekman 1802 has unlocked six figures of value for their profit margins. 

Here’s a snapshot of Beekman’s additional results to date: 

• ~50% of every discount returned to profit margins 
• 10x increase in revenue per email (from <10 cents to almost $1)
• 13% of customers redeem their Fondue offer as cash
• 30% redeem as store credit, supporting return rates and LTV

Moving forward, David sees CashBack becoming a normalized part of the online shopping experience. After all, the model is already being popularized through products like Rakuten, and shoppers inherently understand the value it offers. As consumer demand for savings evolves, CashBack will soon be table stakes for eCom brands who want to stay competitive. 

For David, CashBack represents a powerful way to give shoppers the deals they want — while protecting his bottom line. That’s why he plans to keep Fondue a central part of Beekman 1802’s strategy. 

“The healthier we can make our P&L, the stronger we are as a brand. So, as we look forward, we’re finding ways to pull in Fondue as an always-on tool that helps us achieve this.”