Luxy Hair

Overcoming price sensitivity with optimized buy now pay later.

Consumer financing options, Klarna and others, were already available at checkout. However, they were never highlighted earlier in the buyer journey, especially for international customers.

Services

Conversion Rate Optimization & Shopify Plus Development

Platform

Shopify

Challenge

As a brand with a relatively high average order value, Luxy Hair was used to the common purchase barrier associated. This coupled with a lack of clarity surrounding taxes and duties for international shoppers regarding their geo-location caused increased friction at the point of sale, and therefore a decrease in conversion rates.

Approach
  • Addition of Shop Pay to offer installments to help lower the price constraint on customers.
  • Multi-variant test the value proposition surrounding installment messaging.
  • Split test taxes and duties for different international geo-locations, by including in product cost or calculating at checkout.

Learnings

There are hundreds of financing options. With each having varying costs and performance implications, it is essential to split test messaging and placement to ensure customer profile alignment.

The Result

+16.5%
Transactions
+25.2%
Revenue Per Session
+13.3%
Add to Cart Rate
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