By strategically cutting a product's price by 15%, Ridge saw a 60% revenue increase, challenging common assumptions about AOV optimization. This episode features insights from Ridge and Jones Road on effective pricing strategies, product bundling, and optimizing upsells for significant revenue growth, rather than fixating on average order value alone.
Key takeaways
Prioritize overall revenue growth and profitability over solely increasing Average Order Value (AOV), as demonstrated by Ridge's 15% price cut leading to a 60% revenue surge.
Implement strategic product bundling with 2-3 item combinations to maximize revenue per order, drawing from successful pricing tests at Ridge and Jones Road.
Optimize post-purchase upsell offers by using image-heavy creatives and A/B testing different options, noting that certain subscription upgrades can convert at 20-30%.
Regularly analyze pricing elasticity for your products to understand how price adjustments impact sales volume and total revenue.
Evaluate and optimize your checkout flow for upsells, potentially leveraging tools like Aftersell, to capture additional revenue efficiently.
Why do experienced operators still overcorrect on average order value? Varun Kundra (Co-founder, Aftersell by Rokt) joins Connor MacDonald (CMO, Ridge) and Cody Plofker (Advisor & fmr. CEO, Jones Road) to break down the pricing missteps that quietly cost real revenue and the metric worth watching instead. The hosts compare years of pricing tests at Ridge and Jones Road. They cover three ways to bundle for more revenue per order. Varun explains why image heavy upsells beat plain offers, plus a subscription upgrade converting at 20% to 30%. Connor and Varun wrap with a teardown of Winks, the brand behind Operators Build. Powered By Motion https://9ops.co/motion-runneth NeonPixel https://9ops.co/neonpixel Richpanel https://9ops.co/richpanel-mops Proppel https://www.weareproppel.com/operators Aftersell https://9ops.co/aftersell-mops Haus https://www.haus.io/operators Operators Portal https://portal.9operators.com/dashboard Operators Newsletter https://9operators.com/
Prioritize overall revenue growth and profitability over solely increasing Average Order Value (AOV), as demonstrated by Ridge's 15% price cut leading to a 60% revenue surge.
What does this episode say about conversion & cro?
Implement strategic product bundling with 2-3 item combinations to maximize revenue per order, drawing from successful pricing tests at Ridge and Jones Road.
What does this episode say about product & merchandising?
Optimize post-purchase upsell offers by using image-heavy creatives and A/B testing different options, noting that certain subscription upgrades can convert at 20-30%.
What does this episode say about analytics & attribution?
Regularly analyze pricing elasticity for your products to understand how price adjustments impact sales volume and total revenue.
What does this episode say about dtc strategy?
Evaluate and optimize your checkout flow for upsells, potentially leveraging tools like Aftersell, to capture additional revenue efficiently.
