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

About Lords & Labradors

Lords & Labradors is a marketing-led, online-only brand that makes all of its soft furnishing products in-house in its own specialist UK workshop. It has 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.

The Challenge

The Lords & Labradors team had identified a segment of browsers who were hesitant to purchase, particularly on higher-priced items. To address this, they’d introduced Klarna as payment solution to help shoppers spread the cost of higher-value purchases. However, they needed to make sure this payment option was promoted to those who needed a little more encouragement. They also wanted to explore variations of messaging to decipher what worked best in promoting it.

The obvious first step was to place a simple message on the cart page, but after trying this, it became clear that, to make a real impact, they needed to reach the shopper before the final stage of the purchase journey.

For instance, many users were landing on the site for the first time and exploring category pages but didn’t have knowledge they could pay with Klarna. Lords & Labradors believed it was essential to create more awareness of this in order to convert shoppers and encourage them to spend more.

The Solution

With the help of their Customer Success Manager, Lords & Labradors used Nosto’s Audience Insights and Content Personalization to create targeted on-site content campaigns that highlighted Klarna’s payment option.

To explore how they could obtain maximum results through these content campaigns, they used A/B Testing and Optimization to trial different variations of it: one promoting the ability to pay in 3 instalments, and one promoting the ability to pay later, in 30 days. This A/B test was split 50/50 across all category pages for their ‘first-time visitor’ segment.

On top of the this, the brand also offered an additional incentive to get £10 off when paying through Klarna, which they highlighted on category pages and product pages under the buy button.

The Nosto team guided the placements of these content campaigns and configured them so that the Lords & Labradors team could easily duplicate them and use them for further segments and experiments.

The winning variation proved to be the content that promoted the ability to pay through Klarna in 3 installments.

Further to this, Nosto’s AI algorithm also identified another targeting opportunity towards a ‘prospects’ segment—combining first-time and returning visitors that Nosto deems likely to purchase.

The Lords & Labradors team therefore decided to promote the Klarna offering to them too, as well as a ‘£10 off upon spending £100’ incentive, encouraging them to both convert and increase AOV.

Since mobile accounts for a huge portion of Lords & Labradors traffic, they also made sure these content promotions were specifically targeting mobile prospects. 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.

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

EMILY SHIELDS, ECOMMERCE MANAGER, LORDS & LABRADORS

The Results

Together, these content campaigns created a significant impact on Lords & Labradors’ conversion rate and AOV. Specifically, the brand saw their overall site’s conversation rate triple, and their AOV increase by 37% since all campaigns were implemented.

“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.”, said 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!”, said Rob Beattie, UK Partnerships, Klarna.

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