How Laura Geller A/B tested their checkout to $3.4M in new annual revenue
We sat with Bobby Missry, VP at Laura Geller’s parent company AS Beauty to review their work with PDQ over the last few months. It’s been a wild ride with surprising test results, and numerous unexpected upsides.
An Intro
Beloved cosmetics brand Laura Geller is renowned for its high-quality makeup products that cater to diverse beauty needs. To keep delighting customers and stay ahead in the competitive market, Laura Geller teamed up with PrettyDamnQuick to fine-tune their checkout through a series of smart A/B tests. These efforts aimed at boosting conversion rates, increasing revenue, and enhancing overall customer satisfaction.
Some Key Stats
- +$3.4M annual revenue increase
- +$1.5M annual profit impact
- +7.9% conversion rate uplift
One thing I just love about working with PDQ is that you guys are focused on things that drive incremental, profitable revenues across all our operations.
The Challenge
Laura Geller wanted to optimize their shipping methods and pricing strategies to enhance customer experience while ensuring profitability on these efforts. The challenge was to offer attractive shipping options that could increase conversion rates without negatively impacting the bottom line while considering the behaviors of different segments like first-time and returning customers.
The Solution
PDQ rolled out several A/B tests to evaluate and (and then) take advantage of the available opportunities. They introduced segmented shipping options, tested different formulations of the copy for the shipping methods, offered a premium VIP processing option, and tested how adjusting shipping prices would impact conversion rates for first time and returning shoppers, among other tests.
In short, PDQ transformed a static checkout with unclear messaging into a well oiled dynamic and personalized checkout that's continuously optimized for profit.
It’s unusual to get this level of support at any company.
The Results
Through their innovative partnership with PDQ, Laura Geller has had remarkable wins across multiple categories:
Enhanced Shipping Strategies
- Optimized Discount Wording: Improved clarity of shipping messages, specific to desktop and mobile devices, to enhance the user experience.
- VIP Processing Method: PDQ managed to shift substantial customers from free and express shipping over to a VIP Processing option, optimizing shipping costs while maintaining service quality.
Improved Conversion Rates
- In a series of tests, tailored pricing for UK customers resulted in an uplift of 7.96% in conversion rates for returning customers – demonstrating the power of personalized shipping offers.
Segment-Specific Insights
- First time and returning customers were offered different shipping options and prices in one test. What we learned was that Laura Geller’s new customers prioritize product appeal and brand perception, while returning customers had a higher sensitivity to shipping cost adjustments, indicating the importance of favorable shipping terms for loyal and repeat customers.
Ideal Free Shipping Thresholds
- Testing various thresholds for free shipping (and analyzing their impact on conversion and profitability) helped pinpoint the optimal number to increase AOV.
- PDQ analyzed the impact of higher, lower, and ‘free for all’ shipping options, and brought in over $300K in pure profit by promoting the free shipping by displaying "Unlock Free Shipping on U.S. orders above $40" to carts close to the free shipping threshold (carts between $30-$40).
What’s next?
In addition to continuing existing A/B tests and news based on the results of those existing ones, PDQ is expanding their A/B testing into new Shopify extensions, including an order protection program, trust badges, and upsell offers targeting carts just below the free shipping threshold.
Conclusion
The strategic A/B tests have not only helped to balance shipping costs and improve customer satisfaction but have also driven substantial revenue and profit growth. Simply put, partnering with PDQ has been a massive game-changer for Laura Geller. These results underscore the value of continual testing and optimization, ensuring Laura Geller remains a favorite in the cosmetics industry while consistently delivering a superior shopping experience.
