How True Classic grew profit margins by 4.6%

“Fondue is very innovative in the CashBack space, so we went straight to them. And we have no reason to ever look anywhere else. Fondue has very much earned its spot in our evergreen tech stack.” - Ben Yahalom, President of True Classic

About

Since 2019, True Classic has produced versatile, butter-soft fitted tees for men with a simple ethos: The right fit helps every guy look good, feel good, and show up as his best. The brand recently partnered with Fondue to phase out coupons and optimize its P&L. 

Challenge

Coupons may retain buyers — but they also chip away at your bottom line

True Classic is a bootstrapped ecommerce brand, and like most clothing brands, it operates with slim profit margins. So, its team is hyper-focused on optimizing profit and loss above all else. 

Unfortunately, one common marketing tactic can dramatically eat at profits: coupons. Once Ben Yahalom, President of True Classic, realized discount codes may do more harm than good, he set out to find a new solution that would incentivize email and SMS list signups while optimizing: 

1. Gross profit margins
2. Overall customer acquisition

Ben heard about CashBack as a potential alternative to traditional discount codes and discovered Fondue as the leading tech provider in the space. After meeting with our team, he instantly knew we were the solution for True Classic. 

“We were really curious about how to optimize our profits without coupons. That led us to the CashBack solution that Fondue offers, which really piqued our interest.” 

Solution

CashBack by Fondue boosts acquisitions and profit margins from day one

Immediately after onboarding with Fondue, True Classic ran an A/B test on its standard 20% off welcome coupon vs. a 20% CashBack offer through Fondue. 

The feedback was undeniable: Shoppers overwhelmingly responded to CashBack over discount codes. Plus, early numbers already showed signs of lifted customer acquisitions and stronger profit margins — Ben’s two key metrics of concern. Making the official switch from coupons to CashBack was a no-brainer. 

“We learned that consumers love CashBack offers and that we end up with a more profitable income statement as a result. Using Fondue was such a win-win for us.” 

Ben emphasizes yet another perk of working with Fondue: the true partnership. True Classic has scaled impressively since 2019 with no plans to slow down, so the nine-figure brand needs partners (not just vendors) who are committed to growing with them. 

When the Fondue and True Classic teams collaborated effortlessly during onboarding and beyond, Ben knew they’d found a new partner for the long haul. 

“We don’t just shop for technology. We shop for partners we can view as a true extension of the True Classic team. Fondue definitely has that True Classic partner DNA, which makes for a great working relationship.” 

Results

With Fondue, True Classic can ensure future list growth

Since trading coupons for CashBack through Fondue, True Classic has seen a clear impact on the metrics that matter most. Take a look at some key results so far: 

• 67% increase in welcome series revenue
• 10.8% email and SMS list growth
• 4.6% profit margin boost

Looking forward, the True Classic team is thrilled to have Fondue in their corner. As a high-growth brand, they’ll only continue to scale for years to come — and the results of CashBack are poised to scale alongside them. 

“If any brand is looking to improve profitability and acquire more customers, they would be silly not to give Fondue a shot. Just test it for free and see for yourself.”