The Anatomy of a $97 Million Page: A CRO Case Study

Posted by jkuria

In this post, we share a CRO case study from Protalus, one of the fastest-growing footwear companies in the world. They make an insole that corrects the misalignment suffered by roughly 85% of the population. Misalignment is the cause of most back, knee, and foot pain. Back pain alone is estimated to be worth $100 billion a year.


Summary

  • We (with Protalus’ team) increased direct sales by 91% in about 6 months through one-click upsells and CRO.
  • Based on the direct sales increase, current run-rate revenue, the “Virtuous Cycle of CRO”-fueled growth rate, and revenue multiple for their industry, we estimate this will add about $97 million to the company’s valuation over the next 12–18 months*.
  • A concrete example of the Virtuous Cycle of CRO: Before we increased the conversion rate and average order value, Google Adwords was not a viable channel. Now it is, opening a whole new floodgate of profitable sales! Ditto for at least two other channels. In part due to our work, Protalus’ annual run-rate revenue has grown by 1,212% in less than a year.

* Protalus’ core product is differentiated, patent protected, and high margin. They also have a strong brand and raving fans. In the Shoes & Apparel category, they’re most similar to Lululemon Athletica, which has a 4x plus revenue multiple. While Nike and Under Armor engage in a bloody price war and margin-eroding celebrity endorsements, Lululemon commands significantly higher prices than its peers, without big-name backers! Business gurus Warren Buffett and Charlie Munger often say that the true test of a defensive moat around a business is “Can you raise prices without hurting sales?” Protalus has this in spades. They’ve raised prices several times while simultaneously increasing units sold — from $39 to $49 to $59 to $69 to $79 to $99 to $119.


One-click upsells: A 21% sales boost

When we do engagements, the first order of business to uncover low-hanging fruit growth opportunities. This accomplishes two things:

  1. It helps the client get an immediate ROI on the engagement
  2. It earns us goodwill and credibility within the company. We then have wide latitude to run the big, bold experiments that produce huge conversion lifts

In Protalus’ case, we determined they were not doing post-purchase one-click upsells. Adding these immediately boosted sales by 21%. Here’s how we did it:

  • On their main sales landing page, Protalus has an offer where you get $30 off on the second pair of insoles, as well as free expedited shipping for both. About 30% of customers were taking this offer.
  • For those who didn’t, right after they purchased but BEFORE they got to the “Thank You” page, we presented the offer again, which led to the 21% sales increase.

Done correctly, one-click upsells easily boost sales, as customers do not have to re-enter credit card details. Here’s the best way to do them: The Little Secret that Made McDonalds a $106 Billion Behemoth.

Below is the final upsell page that got the 21% sales increase:

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