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Revenue gained from a single A/B test covers Bandier’s annual Nosto cost

About Bandier

Bandier was founded in 2014 by Jennifer Bandier. Unable to find the best selection of activewear in one place, she set out to create a destination for active and after, ultimately building a powerful point of connection and community for women. 

Bandier is for those who seek a new kind of luxury: from life-changing leggings and next-level sneakers, to breakthrough studio classes, all in pursuit of a life well-lived.

Challenge:

Overwhelmed Customers and Low AOV

Before coming to Nosto, Bandier’s previous recommendation engine required a very manual process that was tedious and difficult to maintain. In addition, with thousands of styles available for purchase from the 50+ brands featured on their site, many of Bandier’s customers were overwhelmed and checked out with a lower average order value (AOV) than desired. 

By implementing Nosto, Bandier was able to automate on-site personalization and merchandising, freeing up valuable time internally so that Bandier could focus on the other responsibilities of running a growing direct-to-consumer (DTC) brand.

Together, Bandier and Nosto have created and deployed a personalization strategy that recommends the most relevant products based on each customer’s unique behavioral patterns and buying signals to ensure they find what they are shopping for, increasing both AOV and revenue.

Solution: Continuously Optimized A/B Testing

Part 1: A/B Testing Personalized Product Recommendations on the Homepage

Starting with the most critical, and highly-trafficked page of an ecommerce website, Bandier and Nosto’s first mission was to test the impact of showing personalized Product Recommendations based on a user’s browsing and purchase behavior below the main banner on the Homepage, versus recommending best-selling items.

By utilizing Nosto’s Continuous Optimization feature within A/B testing, Bandier was able to ensure that in addition to gaining valuable insight from the test results, no revenue would be lost. This is due to Nosto’s ability to automatically direct more traffic to the better performing variation after the first week of the test. 

During the first 18 days of the test, the variation showing personalized Product Recommendations had a 9.7% higher conversion rate than the variation showing best-sellers. This led to a 2% uplift in overall revenue during the time period in which the test was run, covering the cost of their annual Nosto bill in only one month.

 

Part 2: A/B Testing Personalized Product Recommendations on the Cart Page

The second test that Bandier and Nosto implemented was on the Cart Page. Positioned below the checkout buttons, this A/B test was focused on the impact of recommending products on the Cart page to increase average order value versus not showing product recommendations in the cart at all. 

One risk of adding product recommendations to the cart is potentially distracting the shopper from checking out, thus decreasing conversion rate. Therefore, the first variation of this test included two recommendations on the Cart pageone cart-based and one personalizedwhile the second variation of the test did not include any. 

Over the 25 days that this test ran, the average order value of customers who saw the recommendations was 10.2% higher than those who did not see any recommendations. In addition, customers who saw the recommendations had an 8.5% higher revenue per visit than those who did not. 

Results: Increased Revenue and Higher AOV

Since going live with Nosto-powered shopping experiences, Bandier has achieved:

  • A/B testing Product Recommendations on the Homepage:
    • A 2% increase in overall revenue
    • Revenue uplift that covered Bandier’s annual Nosto cost within one month
  • A/B testing Product Recommendations on the Cart page:
    • 10.2% higher AOV
    • 8.5% higher revenue per visit
Results figure

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