How Lambs slashed their overall discount rate in half with Fondue
Case Studies
Fondue Team
March 27, 2024
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“Fondue is very scalable — great for very small businesses and very big ones. It’s a fresh way to discount that’s better for the customer experience and better for your profits.” Â- Thomas Guilbert, Head of Marketing at Lambs
Lambs is a pioneering brand dedicated to protecting everyone from EMF (like WiFi and 5G) and its long-term effects on our bodies. Their range includes everything from caps and beanies to t-shirts, underwear, hoodies, and even the “ThyWrap” for thyroid protection, all designed with their signature WaveStopper fabric. Featured in Forbes, BBC, GQ, and The New Yorker, over 60,000 customers choose Lambs because they want better health, sleep, and cognition.
Because it’s made with silver, Lambs’ EMF-blocking apparel is expensive to produce. To offer a high-quality product at competitive pricing, the brand needs to protect its margins. That’s why Thomas Guilbert, Head of Marketing, wanted to reduce Lambs’ reliance on discount codes.Â
But he needed to do it without harming two other priorities — retention and customer experience. “We have a high rate of first-time customers, and they respond well to coupons,” he explains. “Stripping away all discounts would have been too drastic. To keep those first-time shoppers coming back, we needed to find a middle ground.”Â
Thomas was intrigued by how CashBack could boost margins while still delighting customers. CashBack is redeemed post-purchase instead of at checkout, like a promo code. Some shoppers will redeem it as store credit, while others won’t redeem it at all. That makes it less costly to merchants — and the store credit option supports Lambs’ retention goals.
“Our customers love discounts, and with Fondue, we don’t have to stop giving them great deals. We can offer store credit, build CashBack into bundles, and create new kinds of shopping experiences.”
When Thomas joined the Lambs team, they had already been using Fondue. But he wanted to see what would happen if they doubled down on it. He decided to run a major test of Fondue’s performance during the 2023 Black Friday weekend.Â
For past Black Friday events, Lambs had offered basic discounts of 20% or more sitewide. With Fondue, Thomas took it up a notch. He offered every Lambs customer 15% CashBack if they choose Visa or 18% if they choose store credit. Shoppers could also unlock 20% or 25% CashBack by placing larger orders.
The results were compelling. Customers loved the new offers, and Black Friday sales surpassed expectations. The store credit option also created a ripple effect in customer retention, with many shoppers coming back to make second and third purchases.
And most importantly, those increased sales came with more profits. Compared to prior Black Friday sales, Lambs more than halved their average discount rate from 20% to less than 10%.
“Our customers were just as enthusiastic about CashBack as coupons. 2023 was one of our best Black Fridays — and Fondue allowed us to keep more of it as profit.”
Since seeing the results over Black Friday, Lambs has replaced coupons with CashBack in its welcome offers, product bundles, and more. It’s also become Thomas’ go-to plan for re-engaging lapsed customers. “If someone hasn’t interacted for six months, I’d send a strong CashBack offer to re-activate them,” he says.
That’s created impressive results:
For Thomas, using Fondue means he doesn’t have to choose between protecting Lambs’ profits and living up to its values. “We’re here to sell products that help people but also to offer a great experience,” he says. “Using Fondue was part of that.”
“Fondue fits into essentially all marketing flows and deals we offer. We use Fondue everywhere possible instead of coupons — we pretty much don’t offer direct discounts anymore.”
