Scaling a low-ticket brand through funnel engineering and aggressive AOV optimisation.
Increda-Peg is a homegrown South African success story, famous for its multi-functional, virtually indestructible clothing peg that redefined a basic household staple. Another one of one of our in-house brands that has been online for over 5 years now. As a viral sensation, the brand has built a massive following through its unique product utility and durability. Because the brand operates in the high-volume, low-ticket consumer goods space, its business model relies heavily on digital efficiency. Increda-Peg isn't just selling a peg; we are selling a patented innovation that has become a staple in South African households, requiring a digital strategy that can handle massive traffic while maintaining healthy margins. With over 40 tons of product distributed, it’s fair to say we’ve made a dent in the market!
Despite the product's viral nature, the brand faced a significant profitability wall as global ad costs began to rise. With a low-ticket price point, the margin for error was razor-thin; rising Cost Per Acquisitions meant that the cost to acquire a new customer was beginning to eclipse the profit from the initial sale. Conversion rates were softening, and the Average Order Value was not high enough to support aggressive scaling on paid channels. The brand was moving high volumes of product, but quarter-on-quarter, the net profitability was shrinking, making it difficult to reinvest in the growth required to maintain market dominance.
We deployed the Quantum Growth Model with a primary focus on "Margin Engineering." Recognising that we couldn't just "spend" our way out of the problem, we completely rebuilt the funnel to focus on maximising the value of every visitor. We overhauled the UX to streamline the path to purchase and implemented a sophisticated series of upsells, cross-sells, and bundle offers designed specifically to lift the AOV. Through rigorous A/B testing of the checkout flow, we completely re-invented the optimal offer and price thresholds which resulted in a higher conversion rate. Once these conversion metrics and order values stabilised at a much higher baseline, we introduced fresh marketing campaigns to funnel high-intent traffic into this optimised system, turning a low-ticket struggle into a high-margin growth engine.
