Fresh Clean Threads by the Numbers
Holdout test across their audience resulted in:
10% lift in second purchase revenue within 30 days
9% lift in total repeat orders in the test segment
25x Wonderment ROI
DTC-only brands need to have a deep understanding of each step in their customers' purchasing journey. With acquisition costs continuing to skyrocket, brands need to have a firm understanding of the revenue impact of each touchpoint in their customers journey in an effort to best maximize each step for conversion.
One brand that has a deep understanding of each step of their customers journey is Fresh Clean Threads. Operating in the US, Canada and UK, this 100% focused DTC brand offers affordable and ethically made premium apparel basics. From tees to activewear, polos to hoodies, Fresh Clean Threads offers a wide variety of clothing options for men and women. Their core mission is to unleash confidence in their customers, so they can explore, conquer, and live life to the fullest.
Fresh Clean Threads operates with what has today become a pretty standard best-in-class ecommerce tech stack. They run on Shopify for their ecommerce platform and use Klaviyo and Attentive for email and SMS messaging respectively. However, given the industry-wide challenges of growing a DTC brand today, Brendan Roeschel, the VP Retention and Customer Experience (CX), wanted to figure out how to “increase repurchasing rates, as well as supplement traditional marketing channels (like email and SMS marketing) in an attempt to find new revenue channels.”
The Challenges that Led to the Switch
Brendan oversees all retention and customer experience functions for the company. And a big focus of his work in the past six months has been “expanding to more of an omni-channel retention function.” Brendan told us that email and SMS “were working fine, but we knew that we couldn’t keep hitting our customers with emails and expect LTV to increase at the rate we needed.”
Brendan started thinking about the entire customer experience that they were delivering to customers and saw a huge gap to fill - their post-purchase tracking experience. “Every customer that made a purchase from us that wanted to track their order was being sent to a shipping carrier landing page. We weren’t keeping that traffic and losing a big potential revenue opportunity, not to mention delivering them a disjointed experience.” Knowing this, Wonderment seemed like an ideal program for them to test out.
Brendan called out called few particular areas that he wanted to test when evaluating the impact of Wonderment:
- Increasing lifetime value (LTV), average order value (AOV) and order frequency, in particular actions related to driving another purchase occasion immediately after the first purchase
- Reducing customer support tickets
Understanding the metrics and areas that Brendan and his team wanted to impact, they turned to Wonderment to “not only improve our CX, but also to drive revenue.”
Onboarding with Wonderment
Prior to starting to use Wonderment, Fresh Clean Threads was sending transactional emails through Shopify. The emails were rather barebones and out-of-the-box from Shopify, so they were in essence starting from scratch. “The Wonderment set-up was overall very easy, we just downloaded the Shopify App and made a few configurations. The Wonderment team took care of setting up all of the Klaviyo flows for us which made everything very easy to get started.”
However, in order to truly measure the impact that Wonderment had on Fresh Clean Threads, Brendan designed a test with a hold-out audience - meaning that a portion of customers would not see the new Fresh Clean Threads post-purchasing experience via Wonderment (said another way, they would see the “old” experience), and a portion would see the new branded experience that Wonderment facilitated.
The Fresh Clean Threads branded tracking page included the ability for a customer to track their order in addition to having the opportunity to make another purchase. The tracking page features an integration with Rebuy so “we could pull in AI predicted upsell recommendations to customers right on our Wonderment branded tracking page.”
Although Brendan designed the test, he leaned on the Wonderment team for their advice on the structure of it, given that he knew the Wonderment team “were experts in measuring the impact that Wonderment had on customers' post-purchase experience.” “Overall it was a great process, the team is made up of experts and it was clear that they have worked with a lot of brands conducting tests like we were.”
Wonderment's Impact
“The average incremental revenue from first to second purchases increased over 10% while the total number of orders increased close to 9% during that same time period, compared to the control group”
Fresh Clean Threads ran the test until it was statistically significant and the results were telling. “We were able to positively impact all of the major retention metrics that we aimed to when we made the switch to Wonderment. The average incremental revenue from first to second purchases increased over 10% while the total number of orders increased close to 9% during that same time period, compared to the control group,” Brendan told us. “Given that our revenue slightly outpaced the number of orders we got, it means we also had a slight AOV increase, which is an all around win”
And while this is a big short-term win for Fresh Clean Threads, Brendan is thinking about the impact that Wonderment has further down the customers lifecycle. “Now that we are increasing AOV and the order frequency on a customer's first purchase, this will only help us boost a customer's LTV due to the snowball effect, which any ecommerce brand loves to see in today’s challenging environment.”
Zooming out on the overall impact of this initial Wonderment test, Brendan told us that the ROI of the program was 25x. The cherry on top was that the “new post-purchase landing page experience that Wonderment helped us create was converting at ⅓ the level of the overall site, which is super impressive given that we already have a very strong site conversion rate and the tracking page really isn’t intended for conversion.”
What’s Next for Fresh Clean Threads and Wonderment
Given the strong results of the initial Wonderment implementation, the Fresh Clean Threads team is excited to continue to expand with Wonderment. “Right now, we are thinking through how we can use Delivery Promise and are considering tests to roll out A/B tests with it on site.”
If you are looking for additional ways to increase your revenue while delivering a better CX to your customers like Fresh Clean Threads, set-up time with our team to chat further.