How Lords & Labradors increased AOV by 37% with Nosto’s onsite Content Personalization and Klarna

Lords & Labradors are a marketing-led, online-only brand that makes all of its soft furnishing products in-house.

Lords & Labradors needed to focus on segments who were not aware of their payment capabilities, and encourage them to convert and increase their AOV when purchasing.

Use of our Content Personalization, AB Testing, and Segmentation & Insights.

Saw a 5.46% increase in CVR along with an additional AOV impact of £36.33. ATC rate also increased by almost 3% with the use of Nosto content campaigns.

About Lords & Labradors

Lords & Labradors are a marketing-led, online-only brand that makes all of its soft furnishing products in-house in its own specialist UK workshop. They have grown from a side project into a fully operational ecommerce store with a team of 25 in-house. This direct-to-consumer brand focuses on the ‘new puppy owner’, while also giving support and advice to all pet lovers. The brand is expanding worldwide, recently tapping into a new market reach in the US.

Challenge

The D2C store, Lords & Labradors, repeatedly found that a segment of their browsing users was hesitant to purchase, particularly on higher priced items for their pets. To address this, they found Klarna as a great payment solution for their clients’ needs. Klarna famously lets shoppers buy now and pay later, helping the consumer spread the cost of higher-value purchases without charging interest or fees. 

Lords & Labradors then needed to make this payment option visible to segments who required a little more encouragement on their purchase journey, and figure out which message worked best. 

The first obvious step was to place a simple message on the cart page itself. But after trying this, it became clear that in order to make a real impact, it was essential to reach the consumer before the final stage of the purchase journey. 

Users were landing on the site for the first time or having a look through the dog beds and other categories but did not have the full information of the payment methods available to make their purchase easier. If the Klarna option was made clear to them before the cart, they believed that consumers would spend more and actually make the purchase.

We have found Nosto allows us to personalize easily with inserting content quickly and AB testing to identify whether the content really works or not, never having had this ability before.

 

 

Emily Shields, Ecommerce Manager, Lords & Labradors

Solution

With the help of their Nosto CSM, Lords & Labradors were able to use Segmentation and Insights, and Onsite Content Personalization to identify the correct location and place the content campaigns to solve their challenge. After doing this, they were able to highlight Klarna’s payment option to the most relevant customers.

Since they couldn’t be confident that visitors came to their site with buying intent, ‘first-time visitors’ was a great segment to try these new tactics out for hesitant purchasers. Lords & Labradors offered them different options in an AB test. Option one was to pay in three instalments, option two was to pay later, in 30 days. This test was split 50/50 across all category pages for this segment.

The Nosto team guided the placements of these and set up the content campaigns for the merchant so that they could then be duplicated and used for further segments and new experiments. 

Additionally, the brand gave extra incentive to use Klarna with a £10 off across category and product pages under the buy button:

 

For these first-time visitors, it was also decided to AB test specifically for mobile users, as this is a focus for Lords & Labradors. The winning variation was found to be showing Klarna sliced in 3: below the first row on the category page, with £10 off just below the second row and £10 off below the buy-it-now button on the product page itself. 

Prospects consist of a combination of first-time and returning visitors. According to Nosto’s AI algorithm, most have the intent to purchase. Therefore, Lords & Labradors wanted to encourage them to buy, along with increasing how much they would spend with their payment to get money off with the Klarna promotion. The prospect segment was also offered £10 off when spending £100; this was mainly to get them to convert on the site, but cheaper items also would help AOV. 

The merchant then decided to target mobile prospects next, with the ability to slice their payment in 3 for those who were hesitant to purchase and needed to pay in instalments to convert efficiently. Targeting this segment before they reached the basket itself was a great success, and Lords & Labradors saw a conversion increase of over 3X.

Overall, the implementation of payment content category campaigns, with varying and personalized messaging, was a great strategy for the D2C brand Lords & Labradors. 

Results

These content campaigns created a significant impact on this segment’s conversion rate, add-to-cart rate and AOV. 

“The way Nosto allows us to put content pretty much anywhere on the site is really useful to us. Nosto’s platform makes it super easy for us to show information to certain groups of people, at a certain point in time.” 

Brittany Jarman, Digital Marketing Executive, Lords & Labradors

“I’m always impressed by Nosto’s ability to segment shoppers and in turn, serve up personalized and targeted Klarna content based on their shopping behaviour, it’s a game changer and the results really do speak for themselves!”

Rob Beattie, UK Partnerships, Klarna

3x

Overall site conversion rate when using this personalized content for specific segments.

3%

Increase on add to cart rate from the payment content itself.

37%

Increase to AOV since all campaigns were implemented across the segments.