How Lumin increased welcome series revenue by 74% with Fondue

“With Fondue the impact is immediate. We could see right away that we were getting more signups for email and SMS.” ­- Dylan Chou, General Manager of DTC Business at Pangaea

About

Lumin offers bright solutions for men’s skincare problems in the simplest way possible. They blend science and style to create an essential line of skin, body, and hair products with simple easy-to-maintain routines. 

Challenge

Lumin was looking for a dynamic welcome offer that could boost revenue 

As a brand that promises “brilliant” men’s skincare, Lumin has a lot to live up to. Their customers want a routine that’s easy to manage ​​and produces immediate results — the same thing Lumin’s parent company, Pangaea, wants from their growth marketing. 

Pangaea’s DTC General Manager Dylan Chou says the company is always interested in testing new tactics for growing its brands. Lumin’s manifesto calls its brand a “unique cocktail of science, style, and stunts.” 

But when customers signed up for texts or emails, they received the status quo: 10% off their next purchase. The campaign got the expected results for opens, clicks, and conversions, but it didn’t fit Lumin’s “elegantly irreverent” brand promise. They needed a brilliant welcome offer to match their dynamic approach to men’s skincare — and they didn’t want to break the bank. 

“We were running something that many other brands run, which is a 10% off welcome flow discount. You can sign up for email and SMS, we'll send you a code. And that was going fine, but we saw an opportunity to make our marketing spend more efficient, especially as we scaled up.”

Solution

Fondue replaced antiquated coupon code offers with high-performing CashBack incentives 

Fondue reached out to Lumin with a promise of more customers, higher revenue, and an innovative way to capture new customers. How? Replace those outdated discount codes with Fondue’s CashBack program. 

Dylan says the most intriguing part was that they could grow their email list and increase revenue, without a big upfront investment. Lumin was sold. Fondue ran the test for two weeks across all of Lumin’s welcome texts and emails. They split their discount between their existing 10% off coupon and Fondue’s proposed 20% CashBack. 

The head-to-head battle produced results in just two weeks, and Fondue continued to surprise the Lumin team.

• The product is affordable with very low risk.
• The platform is intuitive to set up and use.
• The team is responsive and easy to work with.

“Once we finished the test, it was very easy to go 100%. It was just a few minutes of work and we were able to implement Fondue’s CashBack program.” 

Results

Lumin increased AOV by 32% – and boosted SMS list growth by over 20% 

Lumin’s CashBack offer performed better than the discount code and smashed every growth metric. In just two weeks, Lumin increased views, opens, clicks, and conversions across SMS and email sign-ups. With Fondue, Lumin’s brought revenue up 73% and increased their average purchase amount.

With Fondue’s CashBack program, Lumin saw: 

• 74% more welcome series revenue
• 31% boost in purchases
• 22% lift in SMS sign-ups
• 32% increase in AOV

Today Lumin offers new customers better value than they could with their old sitewide promo codes. Lumin also pulls in more revenue while their email and SMS lists continue to grow. This success has given a few ideas, including a sitewide CashBack offer for a limited selection of products. Dylan says they’re excited to continue to work with Fondue.

“I can’t say enough good things about Oren and the Fondue team — good tech, good people, and great results.”