Finding the free shipping threshold sweetspot
Who:
Coconut oil-based beauty brand
Strategy:
In order to identify the optimal free-shipping threshold that increases AOV and conversions, as well as drives an increase in net new customers, the beauty brand tested the impact of increasing the free shipping threshold vs. decreasing it.
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Hypothesis:
Shipping costs are often a dealbreaker for online shoppers, and therefore free shipping deals can serve as a massive incentive for indecisive users. However, If the majority of users reach the threshold after adding one or two products to their cart, it may be too low and will not have any added value, but a threshold that is too high may not be seen as attainable for users deciding on a purchase. Brands should test a variety of thresholds, optimizing the winner based on increased AOV and consider experimenting with additional strategies, such as thresholds for different geos or seasons (i.e. around the holidays).
Templates that can be used to achieve this: Your Dynamic Yield account comes preloaded with a rich library of personalization templates, so that you can launch personalization use-cases instantly without requiring any additional design and development effort.
Your Dynamic Yield account comes preloaded with a rich library of personalization templates, so that you can launch personalization use-cases instantly without requiring any additional design and development effort.
