NDA
E-commerce
Turnover $8.46bn
Case Study: Boosting revenue with targeted renovation stage marketing
Company
A leading online marketplace for home improvement products with annual revenue in the billions.
Challenge
The company aimed to boost overall revenue through marketing incentives. One of the tested ideas was to offer free delivery, under the assumption that it would increase the number of purchases and improve customer satisfaction.
However, there was a risk: would the incentive change purchasing behavior in unexpected ways?
Solution
An experiment was launched with a test group of users receiving subsidized (free) delivery. This initiative was closely monitored using internal data and analytics to measure not only sales volume, but also average order size, frequency, and delivery costs.
At the same time, the team continued to use renovation-stage segmentation to maintain targeted product suggestions and upsell campaigns.
Results
Users began placing smaller, more frequent orders, knowing delivery was free
This behavior led to a sharp increase in delivery costs
The average order value dropped, negatively affecting revenue
The experiment was halted early to avoid further loss
As a result, the company prevented a projected 1% loss in total turnover
Conclusion
Even well-intentioned incentives can backfire when they alter user behavior in unintended ways. In this case, real-time data and a willingness to act quickly helped the company avoid a costly mistake.
Experiments aren’t just about finding growth levers — they’re also about preventing damage, and ensuring incentives are aligned with sustainable business outcomes.
Want to achieve similar results in your business?
Message us — we’ll show you how to tailor this approach to your industry.
