How offering free shipping affected Heartland Bread's business (marketing breakdown)
Many brands today offer free shipping. But does it make a difference on your conversion rate or average order value (AOV)? You can finally find out here.
- “To address operating constraints created by free shipping, consider adjusting your offer to create efficiency for your business.” @jadesai94 #DTCPOD
- “Sometimes you’ll see AOV dip with free shipping but that’s usually because of price points when consumers earn free shipping.” @jadesai94 #DTCPOD
- “Even if your AOV falls, make sure to pay attention to other metrics like conversion rate to see the bigger picture.” @jadesai94 #DTCPOD
- “Creating FOMO in regards to your shipping can be a great way to boost orders on certain days.” @jadesai94 #DTCPOD
- “Don't let pushback from one-time purchasers impact your pricing strategy. Focus on building lifetime value and super fans.” @jadesai94 #DTCPOD
We Speak About:
- [01:20] Heartland Bread’s price change to fit in free shipping
- [02:20] How free shipping affect Heartland Bread’s conversion rate
- [03:30] Impact of free shipping on order size
- [05:05] Free shipping effect on daily money intake
- [05:55] How free shipping affected Heartland Bread’s daily money intake
- [06:45] Heartland Bread’s decision to change shipping process
- [08:30] Customer reaction to price strategy change
- [09:55] How to A/B price strategy and free shipping changes
Is free shipping something to consider for your brand?
Free shipping. Everybody loves it. So why is it that some brands choose to pass shipping costs to customers?
Is it because of logistics issues? Is something else?
In this episode of the DTC POD, we dive into Heartland Bread’s decision to change its pricing strategy and offer free shipping for its customers.
Based on the price of your product, free shipping is something you may or may not want to consider.
If your product is less expensive, rolling shipping costs into the product could make your product too expensive for customers. If your product is more expensive, free shipping might be a no brainer.
Stay tuned as we discuss Heartland Bread’s previous pricing strategy, their new strategy with free shipping, and the effect it had on their business.
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More on Heartland Bread’s free shipping strategy: https://sendeats.com/blog/free-shipping/