How Heat Hot Sauce Boosted AOV with Tiered Discounts & Shipping Discounts
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Heathotsauce.com specializes in a diverse range of hot sauces and chile powders, catering to enthusiasts who enjoy adding spice to their culinary experiences.
Heat Hot Sauce offers products that allow customers to recreate popular spicy snacks, such as a copycat recipe for the now-discontinued Paqui Ghost Pepper chips, among others.
This success story explores how Heat Hot Sauce's store utilizes Tiered Product Discounts, Shipping Discounts, and Free Gifts powered by the Kite App to increase Average Order Value (AOV) and introduce new products to sauce and chile connoisseurs.
Heathotsauce.com specializes in a diverse range of hot sauces and chile powders, catering to enthusiasts who enjoy adding spice to their culinary experiences.
Heat Hot Sauce offers products that allow customers to recreate popular spicy snacks, such as a copycat recipe for the now-discontinued Paqui Ghost Pepper chips, among others.
This success story explores how Heat Hot Sauce's store utilizes Tiered Product Discounts, Shipping Discounts, and Free Gifts powered by the Kite App to increase Average Order Value (AOV) and introduce new products to sauce and chile connoisseurs.
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Heat Hot Sauce, specializing in diverse hot sauces, implemented strategies using the Kite app to boost Average Order Value (AOV). They introduced Tiered Product Discounts to incentivize higher spending and launched a Shipping Discount for a monthly subscription box featuring a mystery sauce.
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Introduction
Heathotsauce.com specializes in a diverse range of hot sauces and chile powders, catering to enthusiasts who enjoy adding spice to their culinary experiences.
Heat Hot Sauce offers products that allow customers to recreate popular spicy snacks, such as a copycat recipe for the now-discontinued Paqui Ghost Pepper chips, among others.
This success story explores how Heat Hot Sauce's store utilizes Tiered Product Discounts, Shipping Discounts, and Free Gifts powered by the Kite App to increase Average Order Value (AOV) and introduce new products to sauce and chile connoisseurs.
About
Founded in 2012, Heat Hot Sauces aims to share the finest small-batch hot sauces with the world. Over the years, they have expanded their selection from approximately 100 sauces to over 700, including unique blends and exclusive collaborations with top small-batch sauce makers.
The company prides itself on quick shipping from its Bay Area warehouse and exceptional customer service. Founders Dylan and Becky encourage customers to reach out with any inquiries.
Challenge
Heat Hot Sauce aimed to explore strategies to increase Average Order Value (AOV) and encourage customers to add more items to their shopping carts. With a variety of sauce and seasoning SKUs, motivating users to purchase in bulk can be a win-win strategy for both the brand and the customer.
Heat Hot Sauce also faces the challenge of maintaining customer loyalty, especially in an industry where consumers frequently try new brands. Implementing effective retention strategies, such as loyalty programs or personalized marketing, is essential to keep customers returning.
Additionally, seasonal demand fluctuations affect the business, as hot sauce sales can vary seasonally, with peaks during summer barbecues and holiday cooking. Managing inventory, promoting older stock, and ensuring year-round customer engagement to align with these fluctuations can be complex.
Solution
Heat Hot Sauce took this challenge as an opportunity to get creative and run several promotional campaigns. Firstly, they started with:
Tiered Product Discounts
A dedicated offer page was created to inform shoppers about the benefits of reaching certain spending tiers for eligibility for free gifts.
The tiers are structured as follows:
Any purchase: Free stickers
Over $20: Chile Powder Spoon, Smoked Habanero Flake Sample, Zab's Original "Single Dab" Packets
Over $50: Whole Ghost Pepper Pod, Carolina Reaper Flake Sample, Sweet Heat Taffy Samples, Primo Garlic Crunch Sample
Over $100: Mystery Bottle of Hot Sauce, Habanero Umami Seasoning, Smoked Ghost Pepper Powder
The $20-$50 tier introduces samples that allow customers to try new items they may be hesitant about, while the $100 tier showcases best-sellers.
Implementing Tiered product discounts has provided several benefits to Heat Hot Sauce, which include:
Increased Average Order Value (AOV)
By encouraging customers to spend more to reach higher tiers for discounts or freebies, Heat Hot Sauce can significantly boost their AOV. As customers aim to qualify for better deals, they are likely to add more items to their carts, leading to larger carts and increased revenue.
Increased Customer Engagement
The tiered discount structure creates a more engaging shopping experience. Customers are motivated to explore various products to maximise their savings, which can lead to a sense of value received from their purchases.
Promotion of New Products
Offering samples or freebies at lower spending tiers allows customers to try new products they might not have considered otherwise. This strategy can introduce customers to new flavors or items in the product line, potentially increasing future sales of those products.
Shipping Discounts
Additionally, Heat Hot Sauce aimed to build a recurring customer base that purchases on a monthly basis. They launched a subscription box featuring a mystery sauce bottle each month to introduce their top sellers to hot sauce enthusiasts.
They offered a Shipping Discount specifically for customers who choose their monthly subscription box, waiving shipping costs entirely. This strategy encourages customers to purchase subscription boxes.
Lower Customer Acquisition Costs
Retaining existing customers through subscription models is generally more cost-effective than acquiring new ones. By providing shipping discounts, Heat Hot Sauce can reduce the overall cost of customer acquisition while maximizing the lifetime value of each customer.
The combination of tiered product discounts and shipping discounts has been successful in driving sales, encouraging new product trials, and directly impacting the Average Order Value (AOV) and revenue for Heat Hot Sauce.
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