The Upside to Cross-Selling

April 27th, 2016

How MVMT Watches Boosted Revenue

Your Speakers:

Blake PinskerDir. of MarketingMVMT Watches

Optimizely

Robin PamSr. Product Marketing

Manager

Mariel BacciSr. CRO Strategist

BVAccel

Spencer StumbaughDir. of MarketingMVMT Watches

Housekeeping:

• This webinar is being recorded

• A copy of the slides and the recording will be sent to you tomorrow

• Enter your questions in the chat box

• Let us know your thoughts! Use @optimizely, @mvmtwatches, @bvaccel

Would you like fries with that?

35% of Amazon’s revenue came from cross-selling and upselling...in

2006

How can you use cross-selling to improve the customer experience?

About MVMT

Crowdfunded brand disrupting the 60

billion dollar watch industry

MVMT + BVAccel

• Three-star Optimizely partner

• Shopify Plus prefered partner

• “Build A Business” award connected MVMT and BVAccel

MVMT’s Target Audience

● 18 to 35-year-olds represent 75% of sales● +1.1 Million monthly visits● Mobile is king at 55% of all visits

Implemented an Optimization Program

● Tracking is vital to our success

● Data Driven: Facts vs. Opinions ● A/B tests to optimize site

● How can we increase lifetime value of guests?

Challenges for the Business

● Revenue growth

● On average, audience purchases a new watch every 2-5 years

● How do we increase lifetime value of customer and average order value so we can spend more to acquire a customer?

Introduced Interchangeable Straps

BVAccel’s Testing Methodology

● Identify where guests are in their buying process○ Just browsing or ready to make a

purchase?● Persuasion Architecture

○ Guest buying style■ Spontaneous: wants a deal she

can’t resist ■ Humanistic: will need a friend or

peer to approve product■ Methodical: Needs all the details

before making a decision■ Competitive: Simply wants the

best and to be the best

Testing Methodology for Cross-Sell

● Ideation:○ Guest buying styles○ Taking the “In Store” approach

to selling online

● Goal○ How can we add strap upsell

without causing distraction and decreasing overall conversion?

Three Different Scenarios:

● Interchangeable straps might be shown as a feature to arouse a your initial interest in a watch.

● A salesman at the counter may introduce the straps as you are viewing the watch you like.

● You might choose the watch you want and then be offered a coupon for interchangeable straps on your store receipt or in a follow up email.

Ideation

Idea #1: Shopping Cart Strap Upsell

In Store Experience: Salesman showing guest strap option after they choose a watch they like

Pros: Does not distract from decision making process Cons: Can distract from guest checking out and completing purchase

Idea #2: Post Checkout Strap UpsellIn Store Experience: A discount for strap upsell on a receipt or in the mail post purchase that must be used within a certain timeframe

Pros: ● Does not distract from buying

or checkout process● Appeals to spontaneous guest

Cons: ● Difficult to develop● Might seem “gimmicky”

Idea #3: Products Page Strap Upsell

In Store Experience: Interchangeable straps are displayed alongside watch in showcase

Pros: Integrated into the normal buying process. Can also be seen as a watch “feature”

Cons: Slightly distracting from the buying process

Execution

We choose: Product Page Cross-Sell

Hypothesis: Adding the strap cross-sell to the product page will merchandise the additional products like a watch feature. This will fit naturally into the buying process and increase revenue per visitor without significantly decreasing total completed sales.

Variation 1: Strap Cross-Sell Under Product Styles

Variation 2: Strap Cross-Sell Under CTA “Add To Cart”

Testing on Mobile - HeatmapsVariation 1: Strap Cross-Sell Under

Product Styles

Variation 2: Strap Cross-Sell Under

CTA “Add To Cart”

55% of Traffic is mobile:We need to make sure test is mobile friendly

Dig deeper in data: Scroll mapping shows that only 8% of people would have scrolled down the page far enough to see straps in variation 1

Results

Control: No cross-sell option

Variation 1: Strap Cross- Sell Under Product Styles

Desktop Test

2.2% Increase in Revenue

Variation 2: Strap Cross- Sell Above Product Styles

Control: No Strap Cross-Sell

Variation 1: Strap Cross-Sell Below Product Styles

Mobile Test

Variation 2: Strap Cross-Sell Under CTA “Add To Cart”

5.5% Increase in Revenue

Key Takeaways

● Know your audience

● Mimic “in store” experience to create integrated buying experience

● Testing merchandising cross-sell products can increase Average Order Value + Total Revenue

● EXTRA: The “imperfect” test concept

What’s Next?

● Revisiting Core Pages

● Mobile everything

● Site Personalization

● Continuing to curate a business wide “Data First” mindset

Questions?

Thank You!