How Compound Studio earned up to 25x ROI for their brands using AfterShip Personalization

Compound Studio

“Most upsell tools are focused solely on Checkout; AfterShip was able to provide the end-to-end personalized shopping experience we were looking for.”

Dexter Da Silva
Director of Digital Products

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About Compound Studio

Compound Studio is a Toronto-based brand house, specializing in experimental, direct-to-consumer accessories. Their diverse brands, such as Vitaly, Clocks and Colours, and Etah Love disrupt traditional fashion cycles with weekly releases, emphasizing environmental sustainability using recycled materials and packaging.

The Challenges

To boost revenue, it was essential for Compound Studio to implement an efficient upsell strategy. However, the previous upsell tool being used had posed numerous challenges for shoppers. The tool, while not entirely inadequate, re-directed shoppers out of the cart, resulting in a subpar user experience. Moreover, the absence of analytics tracking hindered the company's ability to gather valuable insights into buyer behavior.

Dexter, leading the charge to enhance their brands, wanted a suitable tool to address these challenges. He found several tools, but disparities existed in terms of functionality and user experience, and not all were made equal. Compound Studio needed a solution that prioritized a robust in-cart upsell experience as well as checkout optimization. This pursuit highlighted the company's commitment to refining and optimizing its customer engagement strategies.

The Result

Compound Studio strategically implemented AfterShip Personalization (APZ) as an early adopter, leveraging its capabilities across key areas of their websites. The integration spans within the Cart, Checkout, and Post-purchase One-Click Upsell (OCU) stages, demonstrating a comprehensive approach to enhancing the customer journey. The results have been remarkable, with the three brands under Compound Studio realizing substantial return on investment (ROI). Specifically, Vitaly achieved an impressive 25x ROI, Clocks & Colours demonstrated a 19x ROI, and Etah Love excelled with a 23.8x ROI. These substantial returns underscore the effectiveness of APZ in driving tangible business outcomes for Compound Studio.

By integrating AfterShip Personalization into critical stages of its online presence, the company has not only realized impressive ROI but has also demonstrated a forward-thinking approach to adapting cutting-edge solutions that align with its brand vision and customer engagement objectives.

What is a Post-purchase One-Click Upsell (OCU)? It’s an additional upsell opportunity that’s displayed to customers immediately after they complete checkout, but before the thank you page.

The Strategy

Compound Studio found several points within the buyer journey to integrate APZ features. Here are some of the most impactful:

Cart Drawer

With the brand Vitaly, Compound Studio’s found success by improving the in-cart experience through a variety of smart features. They use an advanced AI algorithm to suggest matching jewelry as you shop—add a necklace, and it recommends matching bracelets. It's not just about aesthetics; this strategy enhances the shopping experience, increasing Average Order Value (AOV) and conversion rates, a real win for their personalized approach.

To further improve conversion, Compound Studio also introduced a free shipping bar, a perk that resonates with shoppers and nudges them toward checkout. They also added pinned products, strategically placed to capture impulse sales and improve the overall shopping journey. This practical mix of personalized suggestions, free shipping incentives, and budget-friendly options is all geared toward keeping shoppers happy. This comprehensive strategy resulted in a 46.46% boost in AOV, 5.66% upsell revenue and a 8.2% order conversion rate.

Check Out

For their brand Etah Love, Compound Studio uses the Frequently Bought Together feature within APZ, actively promoting three products to enrich the checkout experience. This strategic bundling caters to customer needs while aiming to boost both AOV and conversion rates. For example, after adding a ring to the Etah Love cart, necklaces and earrings are suggested on the checkout page. By leveraging APZ’s advanced checkout capabilities, Compound Studio not only optimizes the shopping experience but also seizes opportunities to elevate overall purchases. This strategy resulted in a 16.96% boost in AOV, 4.05% upsell revenue and a 6.67% order conversion rate.

Post-purchase OCU

Compound Studio also uses the One-Click Upsell (OCU) page to promote SKUs with a lower cost of goods and surplus inventory. Currently, they are highlighting sunglasses with excess inventory by incorporating a countdown timer and an enticing additional 20% off offer. This creates a sense of urgency and added value for customers. By using the OCU page to feature items with favorable cost structures and surplus stock, Compound Studio not only able to recapture potentially lost revenue, but also enhances the overall purchasing experience. This overall strategy resulted in a notable 10.23% boost in AOV.