How we helped Hypuff increase profitability by 25%

Hypuff is an e-commerce brand specializing in elegant bathroom accessories for mature homeowners. Their Leaf Soap Holder, a hero product, is loved for its clever design that keeps sinks tidy and makes soap last longer.

Despite consistent sales and their clever product designs, low profit margins were holding them back from scaling.

The Challenge

Hypuff couldn’t grow beyond their current revenue due to low profit margins. Their popular soap holder, though loved by customers, was a low-ticket item with slim margins after advertising costs.

Every attempt to scale their Facebook ads brought them closer to breaking even, leaving them stuck at their current revenue level. To scale successfully, they needed to improve profitability per order.

The Solution

To help Hypuff scale profitably, we needed to focus on boosting their profit per order by increasing the average order value. This meant identifying ways to encourage customers to spend more through tailored offers, bundling, and complementary products.

The first step was understanding customers' needs and buying behaviors. We set up customer surveys, and through them, we discovered an important insight: customers weren’t just buying soap holders for their bathrooms—they were also buying them for their kitchen sinks.

This revealed an opportunity to expand beyond bathroom accessories and offer complementary kitchen organization products as well.

To determine the most effective placement of these additional products, we conducted research using a combination of:

• Analytics Review

• Session Recordings

• Heatmaps

• UX Heuristic Evaluation

• Customer Reviews Analysis

With these insights, we tested various offer structures to incentivize larger purchases. By introducing strategic discounts on multi-unit soap holder purchases and creating bundles with complementary kitchen and bathroom accessories, we significantly increased average order value while maintaining conversion rates.

Additionally, we developed and optimized a post-purchase funnel that presented relevant offers to customers who had already shown buying intent. This additional touchpoint further boosted both average order value and profit per order, making each sale more profitable.

The Results

Through research, learning, testing, and optimization, we delivered significant improvements for Hypuff:

• 28% increase in average order value

• 25% increase in profit per order

These improvements made each customer more valuable and allowed Hypuff to finally scale their advertising profitably.

Key Takeaways

1. Research reveals opportunities
   Research can help uncover surprising customer behaviors and needs, allowing you to discover new ways to improve the customer experience and increase sales.

2. Use bundling offers to boost profit
   Even with low-margin products, strategies like bundling, multi-unit discounts, and introducing complementary items can help boost average order value and profitability.