How Succulents Box reduced sitewide discounts by 88%
Case Studies
Fondue Team
August 28, 2023
Ditch the discount codes. Drive profitable growth with CashBack.
brands@getfondue.com
Perseverance, unconditional love, and growth are some of the mantras for Succulents Box. It’s no surprise that they have become the leading DTC site for adorable and healthy succulents, cacti, and small plants.
With over 300 succulent varieties, Succulents Box grew exponentially during the pandemic and has become well known for its exceptional variety and customer friendliness and has become the ultimate online destination for succulent lovers.
Thanks to a super loyal and excited customer base, Succulents Box has been able to achieve exceptional growth as a bootstrapped company. Despite their growth, they started to feel they were becoming overly reliant on the use of discounts to drive sales throughout the year and especially during holidays.
Even with its incredible customer base and their willingness to share their purchases organically on social, Succulents Box wanted a solution that would allow them to reduce the number of discounts being used while continuing to maintain the growth it had become accustomed to.
Many discounts were either advertised sitewide or applied automatically to every shopper. This resulted in additional revenue loss, impacting profits negatively.
Succulent Box had previously tried a variety of discounting strategies and apps and had become extremely savvy with their email and SMS marketing campaigns, but any effort to reduce the reliance on discount codes had a negative effect on their conversion rates.
While looking for a unique solution to reduce the money lost from discounting, Succulents Box discovered Fondue. They were enamored with the unique value prop of Fondue and its ability to reduce its reliance on discount codes by offering CashBack as an alternative. Exchanging discount codes for larger CashBack offers would not only uplift its brand equity, but it would also increase its profitability.
Once Succulent Box reached out to Fondue, they quickly got to work crafting a new strategy, replacing their sitewide discounts with CashBack alternatives. Instead of sticking with a single campaign, Fondue deployed a dynamic strategy throughout its entire marketing funnel.
Succulent Box now cycles between discounts and CashBack on all promotional marketing efforts such as:
“We launched our brand with CashBack instead of coupons and seeing great results. Seems to be also helping with returning shoppers which is exciting.”
Founder, Duc Nguyen
Since the deployment of the new mix offering of discount codes and CashBack offers, Succulent Box has reduced revenue loss attributed to discounts by 88.2%. This was achieved while also maintaining the same conversion rate.
In addition to the decrease in overall discounts, one of the most exciting things that Succulents Box is seeing is an increased repurchase rate due to Fondue. This is due to an immense gift card uptake as an option for redeeming Cashback. By adding gift cards as an option for Cashback, it has encouraged people to use those cards for much larger purchases in the future. This has resulted in higher rates of repurchase and much higher LTVs with CashBack shoppers.
Across the board, Succulent Box continues to see substantial and sustained reductions in discount payments while maintaining its quality and reputation among its loyal customers.
“We've been using CashBack for over a quarter now and use it more and more. It's the most profitable discount type. Their customer service is very fast and responsive so we feel well taken care of”
Founder, Duc Nguyen
