How TUSHY boosted welcome series revenue by 29% using Fondue

Case Studies
Fondue Team
February 23, 2024
"Our team's North Star was to remain cash-positive while simultaneously reducing reliance on discounts to drive sales. Fondue helped us achieve both, and the results truly speak for themselves." - Jake Martin, Senior Marketing Manager at TUSHY

About

Founded by serial entrepreneur Miki Agrawal, TUSHY is on a mission to revolutionize the American bathroom. They’ve made bidets mainstream in North America and have created a line of other sustainable products that turn the bathroom into a spa-like oasis. The company’s initiatives for sustainability and access to community toilets across the globe has earned TUSHY acclaim from The Atlantic, The New Yorker, CNN, and more. 

Challenge

Coupons grease the wheel for conversions — but they hurt TUSHY’s bottom line

As online shoppers are increasingly price-sensitive, DTC brands often leverage discounts to drive sales. While this tactic did boost conversion rates for TUSHY, it had unintended costs: Too many shoppers only purchased when offered a discount, eating into TUSHY’s bottom line. 

This problem was amplified by coupon codes frequently leaking to different websites (like RetailMeNot and Groupon), providing unqualified shoppers with further discounts. 

To regain control and stay as cash-positive as possible, TUSHY sought a solution that would: 

  • Support their lean marketing team
  • Reduce reliance on discounts to drive sales
  • Prevent promotional offers from reaching unqualified shoppers

Not long into their search, TUSHY discovered Fondue. After reading about the results of brands trading in coupon codes for CashBack, they knew it was time to make the switch. 

"We conducted a lot of consumer research and found that for a shopper to make a purchase, 90% of the time, they need to be given some form of discount. CashBack makes providing these discounts much less negatively-impactful to TUSHY’s bottom line." 

Solution

Fondue helps TUSHY ditch coupons and capture new buyers via CashBack

After deciding to trial Fondue, TUSHY ran a month-long A/B test to determine the effectiveness of CashBack vs. coupons. The biggest concern was how offering CashBack might impact brand equity since this was brand-new territory for their marketing team. 

Fortunately, only two weeks into the test, TUSHY found that CashBack promotional offers significantly increased welcome series revenue compared to coupons. This increase gave their marketing team the confidence to ditch coupons altogether and integrate CashBack into each of their email flows, including: 

  • Welcome flows
  • Abandoned cart flows
  • Birthday flows
  • Direct mail offers

In addition to this massive uptick, TUSHY found that only 50% of buyers actually claimed their CashBack offer. This empowered the brand to double down: upping their 10% CashBack offer to 20%, incentivizing more sales without the extra cost. 

These are big wins for CashBack as a concept, but the TUSHY team attributes most of their success to Fondue's client support. Fondue gives TUSHY a direct line of contact via Slack, as well as direct support for setting up and executing new flows via Shopify and Klaviyo. As a brand with a lean marketing team, that support has been invaluable in helping TUSHY extract the full value of CashBack promotions. 

"Fondue outperformed every coupon offer on our site and generated 29% more revenue in our welcome flows. We were so blown away by its performance that we didn't hesitate to unleash it into every single email flow we had." 

Results

TUSHY boosts welcome series revenue by 29% while reducing monthly discount payouts

Implementing CashBack with Fondue ultimately helped TUSHY multiply their sales revenue — without doubling down on promotions. Here are the A/B test results that TUSHY reports:

  • 45% SMS list growth
  • 25% email list growth
  • 29% boost in welcome series revenue

Moving forward, TUSHY can't wait to incorporate Fondue into product upsell flows — gifting free products and rewarding repeat purchases with 20% CashBack. With increased sales revenue as their North Star, TUSHY can scale confidently with Fondue at their side. 

"Fondue empowers us to deliver more valuable promotions to our shoppers and remain net-positive from a revenue standpoint. We can't wait to use it to level up more email flows in 2024."