The Rise of Try Before You Buy — Benjamin Davis | Boosting Conversions With Try-Before-You-Buy, How Try-Before-You-Buy Increases AOV & LTV, Replacing Discounts With Trials, Best Industries For Free Trials, Amazon’s Use Of Try-Before-You-Buy (#364)
For Shopify stores, offering a "Try Before You Buy" option can significantly boost conversions, average order value (AOV), and customer lifetime value (LTV). This strategy, which mirrors the in-store experience, allows customers to try products at home and only pay for what they keep, thereby reducing purchase anxiety and encouraging larger cart sizes while simultaneously decreasing customer acquisition costs.
Key takeaways
Implement Try Before You Buy (TBUB) as a strategic alternative to discounting, especially for new customer acquisition, to reduce CAC and improve LTV/CAC ratios.
Leverage TBUB to increase AOV by encouraging customers to add more items to their cart, as the initial cost is zero. This mimics the in-store fitting room experience.
Understand that an increased return rate with TBUB is often outweighed by the significant gains in net revenue per customer, particularly when compared to traditional purchase models. Focus on net profitability rather than just return rate percentages.
Consider TBUB for categories beyond apparel, such as cosmetics (driving trial similar to Sephora/Ulta) and electronics (addressing quality/efficacy concerns), as the core consumer psychology of wanting to try before buying applies broadly.
Start with a targeted TBUB rollout for returnable products, aiming for an initial 10% opt-in rate, and gradually expand as profitability and unit economics prove superior to traditional buy-now models.
Themes
customer acquisitionecommerce growthprofitability & unit economicstry before you buy strategy
Enjoying the Ecommerce Coffee Break Podcast? Here are a few ways to grow your business: https://ecommercecoffeebreak.com/level-up/ --- In this episode of the Ecommerce Coffee Break podcast, we dive into the transformative power of the "Try Before You Buy" strategy for Shopify stores. Our guest, Benjamin Davis, founder and CEO of TryNow, shares how his platform empowers over 250 merchants to enhance customer acquisition, increase order values, and drive loyalty. Benjamin expl...
Frequently asked about this episode
What does this episode say about customer acquisition?
Implement Try Before You Buy (TBUB) as a strategic alternative to discounting, especially for new customer acquisition, to reduce CAC and improve LTV/CAC ratios.
What does this episode say about ecommerce growth?
Leverage TBUB to increase AOV by encouraging customers to add more items to their cart, as the initial cost is zero. This mimics the in-store fitting room experience.
What does this episode say about profitability & unit economics?
Understand that an increased return rate with TBUB is often outweighed by the significant gains in net revenue per customer, particularly when compared to traditional purchase models. Focus on net profitability rather than just return rate percentages.
What does this episode say about try before you buy strategy?
Consider TBUB for categories beyond apparel, such as cosmetics (driving trial similar to Sephora/Ulta) and electronics (addressing quality/efficacy concerns), as the core consumer psychology of wanting to try before buying applies broadly.
What does this episode say about customer acquisition?
Start with a targeted TBUB rollout for returnable products, aiming for an initial 10% opt-in rate, and gradually expand as profitability and unit economics prove superior to traditional buy-now models.
