How Polonio Group Increased Welcome Flow LTV by 25.4%

About:

Polonio Group was born from the idea of creating meaningful brands that make the world a better place. After all — they build fast-growing, inspiring brands that have a positive impact on the world and deliver products in a sustainable manner. With this relentless commitment to both the customer and the planet, it’s no surprise that their jewelry brand has grown so rapidly over the last few years! 

Challenge:

Despite their rapid growth, Polonio Group’s jewelry brand was facing two unique challenges. The first challenge — figure out a way to optimize their welcome flow to have an immediate positive impact on conversions and revenue. Like most brands, they were leaving money on the table. But the Polonio Group was finally ready to capture that lost profit. 

The second challenge was increasing the long-term value of shoppers. Acquiring a new customer can cost 5x more than retaining and converting one-time shoppers into repeat purchasers. Understanding this long-term perspective, Polonio Group knew they wanted to focus on returning shoppers who would come back after loving their initial purchase. 

“We were looking for something new to convert our happy customers into loyal repeat purchasers.”

^{Uri Trocki, CEO}

Solution:

Armed with Popups, Email, and SMS, they knew they needed a new and innovative shopping experience if they were going to be successful at driving repeat purchases. As an incentive, let’s face it — coupons simply aren’t cutting it anymore (and also tend to devalue a brand’s reputation). The Polonio Group reached out to Fondue and quickly fell in love with the shopping experience CashBack was able to deliver. Swapping coupons for CashBack would not only help uplift their brand, but also create a continual commerce experience for the shopper well beyond the checkout (by offering gift cards and more). Now that’s how you increase LTV and repeat shoppers!

With a reputation for boosting revenue/profits within the welcome flow, they couldn’t wait to get the ball rolling.

Strategy:

Understanding Polonio Group’s jewelry brand was looking for immediate impact and results, Fondue provided an end-to-end white-glove service and onboarding experience. To ensure everything was as seamless as possible, Fondue set up an A/B test natively within the brand’s Klaviyo pop-up email campaigns. This test pitted the original 10% off pop-up against a new 20% CashBack offer from Fondue across both mobile and desktop — allowing them to accurately gauge which offer encouraged more signups. 

The test then consistently flowed through email campaigns, enabling them to determine which offer produced the most clicks, conversions, and most importantly — revenue! 

“Onboarding with Fondue was quick & easy. They managed the entire creation and execution of our A/B test.”

^{Uri Trocki, CEO}

Results:

The results were massive at every stage of the welcome series funnel. (Go figure!) Email signups increased by 15.3% in their popup while also producing 20.6% higher AOV for first purchases. As if that weren’t enough, LTV increased by 25.4% after only 60 days driven by an engaging post-purchase experience and gift-card selections. 

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CashBack was the clear winner in the A/B test resulting in a total net revenue increase of 30.1%. We hate to say “we told you so” but… “we told you so”! 😝 Bottom Line: Coupons don’t have the same impact as a CashBack incentive to convert and retain shoppers. Today’s buyers long for more meaningful offers that allow them the chance to re-engage authentically with your brand.

“Switching to CashBack from coupons has been a game changer for us. It’s proven to be a more authentic experience  for our customers and has increased our repeat purchase rate.”

^{Uri Trocki, CEO}

As you can imagine, the Polonio Group was extremely happy with their results, and are continuing to convert more and discount less with CashBack. With this simple swapping of CashBack for coupons, any brand can see significant improvement throughout every stage of its welcome series!