How Obvi increased conversion rate by 85% on second subscription orders.
Obvi was founded with one objective in mind: to provide the most obvious choice in products and ingredient transparency. Obvi makes a variety of health and nutritional supplements, including Obvi Protein, Obvi Collagen, and Obvi Fat Burner. Many look at Obvi’s Collagenic Fat Burner capsules for weight management due to the proven ingredients in the formula.
Obvi takes pride in understanding their customers and the experiences they want to provide with their products. It’s critical to create the best customer experience to retain your customers. For this reason, they migrated to Stay to help optimize their existing subscription program.
One of the tools the Obvi team was most excited about was the ExperienceEngine and the ability to A/B test gifts and upsells throughout the subscriber journey. The new gifting functionality allows the team to empower customers to gift subscriptions to a special someone. Being able to offer free gifts to your subscribers is a great feature, but it’s not a cost-free perk. The Obvi team needed to first understand the impact of offering gifts at different order numbers to fully utilize this functionality.
We implemented a free gift vs no gift test on order number 2, 3, and 4. By testing this, we found that customers on order number 2 who were aware that they would receive a free gift converted 85% more than customers who did not get offered a free gift. Yes, 85% higher, you read it correctly. This was measured by customers who had an upcoming order date in five days than had a completed order. Meaning, these customers didn’t skip or cancel their next scheduled order.
One of the most common questions we get is: Why did the projected order amount not match at the end of a given month? This is both due to order skipping and order cancellations.
Before we implemented this test, Obvi was seeing about $22,000 a month in loss revenue due to order skips. By offering a free gift on the second order, we were able to reduce the order skips and order cancellation on the second order by 85%.
An interesting finding from this test is that the free gift only had a 15% influence on the conversion rate on the third order and had no impact on the fourth. It may seem like a lot of initial effort. But planning and testing your audience is vital before rolling out any changes. Since migrating to Stay, the Obvi team has been able to massively improve their conversion rate, and more accurately predict future sales.