About the Company
Cuddle Clones recognizes the unbreakable bond pet moms and dads have with their fur-children. But oftentimes, that bond is disrupted due to travel, going away to college, military deployment, or worst of all, the loss of a dear pet. Cuddle Clones aims to capture that connection with 100% handmade plush replicas of those pets! As soon as an order is placed, Cuddle Clones’ skilled artisans capture all of the physical details and personality traits of your pet in an adorable stuffed animal form. With more than 300,000+ units sold, these adorable creations are known worldwide by only one name: Cuddle Clones!
PriceBot
Price Optimization
United States
Accessories
The Goal
Cuddle Clones’ founders always had a hunch: because of how unique their products are, the sentimental value it provides, and the fact that they scarcely have a competitor that offers the same level of quality and service, they may be able to price their products much higher than the current prices. But for months, they were engaged in a drawn out acquisition process — as soon as the acquisition was completed, Cuddle Clones’ founders were eager to prove to their new parent company that Cuddle Clones’ products have significant pricing power that can, and should, be exploited. They came to Tontine with just one demand: show me how high I can price my products without losing conversions. Tontine delivered, and more.
The Strategy
From the outset, Tontine’s Price Optimization Experts realized that tackling the challenge set forth by the Cuddle Clones team would be challenging for two reasons: (1) the company’s data warehouse was messy and largely unstructured which makes it difficult to conduct in-depth analysis; and (2) any test that involves testing the upper bounds of a product’s price elasticity curve cannot correlate to a higher CPA on paid social channels, since they had strict CPA targets to prevent margin compression. Tontine’s experts tackled the first issue by applying a data model that had been previously built for another client in the pet accessories vertical — this quickly illuminated the fact that, based on historical shoppers behavior, there’s significant price insensitivity when it comes to add-ons and upsells (which 55%+ of customers choose to add to their orders), but may face resistance if the baseline prices were manipulated in any way. Secondly, in collaboration with Cuddle Clones’ engineering team, we developed a custom analytics tracker to ensure there’s no positive correlation between an increase in experimental prices and CAC reported by various paid social channels.
The Results
Upon the conclusion of the initial price tests, it became clear that Cuddle Clones could increase the price of the most popular add-ons and upsells (i.e. the Custom Pet Bandana and Zipper Pouch — both of which are featured prominently in the checkout flow) by up to 610% without seeing a dip in conversions. This translated to a 14%+ increase in company-wide gross revenue while CPA remained constant; marketing budget as a percentage of sales decreased from 38% to 31%. In short, Tontine drove a 21x ROI within just 90 days of working together.
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"How do you know if you’re charging the maximum customers are willing to pay? You don’t. We certainly didn’t. That’s why we use Tontine."
“Finding the best price for each of our products is a lot faster with Tontine. And in our industry, that means we’re able to bring a product that’s on-trend to market a lot quicker.”
"Working with Tontine is as hands-on/off as you’d like. The Price Optimization Experts ensure they’re consistently delivering value without becoming another burdensome platform to manage."
"When we started working with Tontine, they promised us full control, incredible support, and clear-cut ROI. They’ve delivered. You won’t find a more professional & accommodating team elsewhere."
"How do you stay ahead of the rapidly evolving landscape in such a competitive industry? You reconsider every aspect of your business regularly — starting with pricing."
“Tontine’s A/B testing system is very different from anything we’ve used previously — it’s undeniably more effective and impactful.”
“Tontine makes it easy for our team to focus on developing new marketing initiatives rather than the operations of price testing. With Tontine, we’re in good hands.”
"Risk-free price testing is an insurmountable challenge with our complicated custom infrastructure… rarely do you find a team so helpful and willing to dive straight into it to ensure everything is set up perfectly."
“Tontine basically provides the ground truth for any product release, since it starts with pricing. This is a very, very critical piece to the way we operate.”
"Tontine is the best kept secret for Shopify retailers. We can now safely adjust our prices to maximize profit without losing customers, because we have the data to back it up."
"Our D2C channel was a loss leader in our revenue mix— until we started working with Tontine. This was the path of least resistance to growing our revenue without any associated overhead."
"Clients typically see a 5-7x ROI increase on their creative assets even without extensive CRO work — Tontine is our unfair advantage."
"Tontine helped us test different price points for new products with a group of superfans, so when we released the products publicly, it was at the most profitable price."
“Kudos to Tontine’s team for meeting our extremely strict standards and SLAs. The whole Tontine team stepped up and worked hand-in-hand with us to meet our needs.”
"Tontine is a true partner, rather than just another vendor. We rely on them for strategic insights, competitive market analysis, and most importantly, reliable price test results."
"Truly a no-brainer: Tontine is the go-to solution if you’re trying to focus on your business’ bottom line instead of just optimizing for the top line. For us, this is the most important profit lever we have in our toolkit."
"Our biggest concern was the technical lift needed to integrate with Tontine. Thankfully, their Implementation Specialists handled it all, and didn’t stop working until we were satisfied."
"We haven’t discovered an A/B testing solution that prioritizes protecting our brand integrity as much as Tontine has. The only solution that’s truly compatible with our stack."
“No strenuous integration, no ambiguous data, and no friction working closely with Tontine’s team. This has been a dream partnership.”
“We can’t fathom of an easier or faster way to price test our products and receive a decisive result in just days. Tontine is integral to our merchandising strategy.”
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