Increda-Peg is a simple re-design of the clothing peg that took the South African clothing peg industry by storm.
As a low ticket product, Increda-Peg was struggling to maintain profitability in an environment where ads and operational costs are constantly increasing. Both profitability and their conversion rate was on the decline and things were evidently getting worse quarter-on-quarter.
While there were a multitude of improvements that we saw to which brought about a better customer experience, our core focus was on fixing the conversion rate which fell off completely over their most recent quarter.
We also identified average order value as a great focal point given the low ticket nature of the product. To do this, we focused on upsells and cross sell during the pre- and post-checkout stages of the customer journey.
To give effect to this, we ended up re-designing their entire website, customer journey and funnel.
Once the foundational improvements were seen to, we then tested two different offers over a period of three months which evidently contributed to an improvement in both the average order value and conversion rate.
Over the first 3 months of our solution being live we saw an increase in average order value by 25% which took their average order value from R281 to R375.
But most noticeably we brought about and sustained an increase in conversion rate by an aggressive 37% taking their conversion rate from 2.4% to 3.85%.
All-in-all, this put Increda-Peg back in a position to get back to scaling the brand. Their ad spend went much further than before and this brought about a 59% increase in revenue over the first 3 months that we implemented the solution.
Most significantly, this period was also one of their most profitable runs yet.
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