ExperienceEngine makes it easy to set up tests and promotions. And you don’t have to bury yourself in confusing spreadsheets to know whether a tactic moved the needle on your goal — the data’s all right there for you.
This guide will walk you through some best practices for utilizing ExperienceEngine's promotions capabilities to reduce churn, A/B test what works best, and increase customer LTV.
A/B Testing
With Stay Ai’s ExperienceEngine, brands can easily A/B test different types of offers and see what’s most effective for increasing LTV. Brands can use ExperienceEngine to quickly identify types of offers and incentives that work best across which customer cohorts — all without having to spend hours manipulating hard-to-understand analytics.
Testing Product Upsells
If you want to increase AOV, test a couple of different upsell offers to see which gets the higher take rate. You can also do a test upselling two different products or even test a couple of discount offers.
Pro tip: try comparing odd-numbered or “weird” discount offers versus the standard 10 – 25%. We’ve seen some of the unique upsell discount offers get better responses because subscribers perceive them to be more personalized.
Lifeboost A/B tested upselling subscribers on two different coffee variants – a pumpkin spice blend and an espresso blend. The promotion was a massive success, generating thousands of dollars in additional revenue. You can read the case study on our website to learn more.
Testing a Free Gift vs. Discount Offer
Sometimes, sending a free $1.00 sticker does the job, but for other brands, customers really only act on a discount. What is the best way to find out your subscribers’ preferences? This is why you have ExperienceEngine; you can test it.
Pro tip: Identify a point of high churn and offer a free gift-with-purchase—preferably something useful and will keep your brand top-of-mind—right before that point. Then, you'll be able to see if this builds enough loyalty to keep your subscribers with you longer.
Gifting
Test a free gift of a complementary product to increase retention. Surprise and delight customers across the subscription journey with gifts on various set subscription orders using ExperienceEngine. For example, NoonBrew offers a free gift on second orders — in this case, a free tea storage container. This delights customers and reduces second-order churn. Plus, it has the added effect of reminding customers about the brand every time they’re in their kitchens, building affinity over time.
Read Obvi's Case Study
By targeting specific points in the subscriber journey, Obvi was able to reduce churn risk and increase subscriber LTV. Obvi implemented a free gift vs. no gift test on order numbers 2, 3, and 4. By testing this, they found customers on order number 2 who were aware that they would receive a free gift converted 85% more than customers who were not offered a free gift. This was measured by customers who had an upcoming order date in five days and then had a completed order. This means these customers didn’t skip or cancel their next scheduled order.
Read more about how Obvi has become a power user of ExperienceEngine in this case study as well as our blog post on how several brands have successfully built promotions with ExperienceEngine.
Moon Juice ran a promotion in early 2023, offering subscribers a free sample of one of their best-selling supplements on their third subscription order. The cohort of recipients had a higher order value for their following order – indicating a boost in brand loyalty (and revenue for Moon Juice)!
Utilizing AI
ExperienceEngine isn’t just a feature — it’s really a paradigm shift in how brands structure and manage their subscription programs.
Identifying customers that are and are not churn risks will help to determine how different promotions should be targeted to subscribers of your brand. Stay's machine learning model uses a number of customer-behavior-informed data points to determine which subscribers are most likely to churn.
What Next?
Want to know how to create a promotion with ExperienceEngine?
Want to know how to manage the promotions you've created?
Click here to read our Managing Promotions article.
Have more questions?
Click here to review our ExperiencEngine FAQ article.
Looking for inspiration for building promotions?
Check out these blog articles from the Stay Ai team: