Ditch the discount codes. Drive profitable growth with CashBack.
Mugsy is the brainchild of Leo Tropeano, who launched the brand as a solution to years of ill-fitting straight-leg jeans. The promise is simple: offer comfortable, stylish jeans for men that actually fit well. Since 2016, Mugsy has launched new products like shorts and tops, two brick-and-mortar stores, and a series of sustainable initiatives from manufacturing to shipping.
The Mugsy team faced a challenge that's all too familiar for premium direct-to-consumer (DTC) eCommerce brands: the declining effectiveness of traditional promo codes.
For years, the menswear brand drove first-time purchases with a 10% off coupon code. But not only did this tiresome incentive eat into profits, it didn't guarantee those customers would return.
So, Mugsy started looking for a discounting solution to entice first-time customers and boost recurring purchases. That's when a partner recommended Fondue.
“We had been looking for ways to clean up our Welcome Series because coupon codes are messy, and the general consensus is that consumers are pretty much immune to them now.”
This referral came during a historically slow sales season, making it the perfect opportunity to test Fondue with minimal risk. So, Mugsy signed up and began to explore Fondue’s potential.
The Mugsy team leveraged Fondue’s Wunderkind integration to level up their Welcome emails with a CashBack offer. Once completed, the Fondue and Mugsy teams planned a two-week A/B trial test between their usual 10% promo code and 20% CashBack.
Mugsy rarely offers sales above 10% off, so the 20% CashBack offer proved especially enticing for first-time customers.
An overwhelming majority of new customers opted for CashBack. And because only some people need a discount code to place a purchase, many CashBack offers went unclaimed or they were claimed as site credit – allowing Mugsy to offer the higher discount without eating further into their profit margins.
“Fondue took learnings from similar apparel brands and applied them to us. This helped us get more people back in the door and do it a lot faster."
By offering CashBack with Fondue, Mugsy unlocked significant growth, including:
With data to prove the value of CashBack, Mugsy is saying goodbye to traditional discounting altogether. Instead, they plan to leverage Fondue’s CashBack as the inventive for all promotions moving forward.
“We’re trying to eliminate promo codes altogether across our entire ecosystem in favor of CashBack. This new incentive really makes customers happy, gets them excited about our brand, and keeps them coming back.”