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Multivariate testing shipping costs — Personalization use cases
2019-08-22 · via Mastercard Dynamic Yield

Multivariate testing the shipping cost and threshold with multi-touch campaigns

Who:

Large discount retailer selling all items at a flat rate

Strategy:

In order to overcome the deterrent of high shipping costs for low priced items, the discount retailer used a single multivariate multi-touch test to identify the optimal flat shipping cost for any item at any cart value, leading to enhancements throughout the entire supply chain.

Multivariate testing the shipping cost and threshold with multi-touch campaigns Multivariate testing the shipping cost and threshold with multi-touch campaigns

Hypothesis:

For brands looking to better optimize the checkout experience, appropriately matching the value of the items in the cart to the cost of delivery can have a massive impact on whether or not a shopper moves forward with a purchase. Through multivariate testing, marketers can identify which configuration of elements is the most successful in terms of conversions, whether it’s “Free Shipping” vs “$5 Flat Rate Shipping” or another combination of options.

What real growth looks like with personalization