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Increase Your AOV by 13% When Optimizing Your Offer
A smarter buy box setup turned one-time purchases into higher-value orders, without hurting CAC or subscriptions.
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Pinch Magic Fiber was looking for more immediate revenue and asked Structured to come up with an offer that accomplished their goal. Our team recommended a change in their offer to allow customers to buy their product in bulk at a steeper discount. This was a benefit to the customer since they got a bigger discount, and was a benefit to Pinch as it provided more immediate revenue.
The main challenge we had to overcome in implementing this offer was to not decrease the percentage of people that were subscribing, and to not hurt our new customer CAC. AOV, CAC and subscription percentage were watched closely (along with LTV over the months) as we rolled out this offer.
Pinch saw their AOV on first purchase increase 13% while their Subscription rate, CAC and LTV was stable.
Testing the new buy box offer on one landing page and the original setup on another landing page, we ran our top ads to both landing pages and ran this for 3 months until we had convincing data to prove that the bulk offering would not affect performance.
Once we had the data, we then rolled out the new buy box to the product page and continued to monitor. Performance was stable and average order value went up. Over a 9 month period we also continued to monitor LTV which showed that having a bulk buy offer was attractive to about 20% of their customer base and they stuck with the subscription for about the same amount of time as someone on the monthly recurring subscription.
The additional change we made was calling out the monthly jar cost on the right-side vs showing the 3 month or the 6 month cost you would incur. In our testing we found that showing the monthly jar price improved CVR and defaulted to this setup. What we continue to see is that making big buy-box and offer adjustments can positively affect performance for the whole business and these types of adjustments are worth the effort.
