Case Study: Nala Scales Personalized Offers and Increases ARPU by 46% with Monocle
Discover how Nala — a leading sustainable intimates brand — used Monocle to optimize promotions spend across all pre-purchase flows.
46%
increase in ARPU
41%
increase in CVR
11%
increase in AOV
about
Nala is a sustainable intimates brand on a mission to showcase body positivity with underwear that's beautiful by design and better for the planet. Praised by women across the globe, Nala has been featured in several prominent publications, including Body + Soul and Fashion Journal.
"You don't have to convince anyone in ecommerce how massive a 46% increase in ARPU is. Especially when our discount percentages have remained essentially the same. That's the power of Monocle."
The Challenge
Nala sought to eliminate the guesswork surrounding its promotions strategy
Thanks to an affordable pricing structure and ethos surrounding body positivity, Nala has enjoyed rapid growth since its DTC debut. But, in the increasingly competitive ecommerce landscape, Co-Founder Phil de Winter suspected that Nala was slightly over-discounting its products to drive sales.
While Nala’s discounts did drive purchases, their frequency was potentially conditioning shoppers to buy only when a promotion was offered — an especially troublesome issue for a brand with already affordable pricing.
Phil’s extensive ecommerce experience told him that relying on competitor analysis and a degree of guesswork wouldn't help Nala drive sustainable profit from its promotions. So, he sought a tool that would give him transparency into the effectiveness of his promotions and allow him to generate unique offers for each customer.
He found both of those attributes in Monocle.
"While discounting was part of our ecommerce strategy, we were executing promotions with little science behind them. This got some of our customers into a habit of only buying with a discount, which was far from ideal for a brand with a fairly priced product."
The Solution
Monocle is Nala’s single source of truth for its promotions strategy
Monocle helped Nala optimize promotions spend across all pre-purchase flows. Within a week of onboarding, Monocle had consolidated Nala's offers — from its Welcome Series to Checkout Abandonment — into one integrated promotions engine.
Nala used this engine to deploy unique offers based on hundreds of customer attributes, most notably:
- Number of touchpoints with Nala
- Stage in the buyer's journey
- Combined purchase intent
Shifting from blanket discounts to personalized offers increased Nala’s CVR and AOV without changing the average discount.
With Monocle’s performance dashboard, Nala also has absolute clarity on the effectiveness of its promotions spend, and can make alterations to favor demand or profitability at a moment’s notice.
"There's always a bit of trepidation when you're overhauling a critical sector of your business. But after seeing what Monocle's personalization platform can do, we're already looking to implement them across the rest of our flows."
The Results
46%
increase in ARPU
41%
increase in CVR
11%
increase in AOV
The Results
Nala's refined promotions strategy yields a 46% increase in ARPU
Nala's investment in Monocle to bolster its promotions strategy has undoubtedly paid off. Today, Phil spends far less time worrying about over-discounting and more time strategizing on how to drive Nala’s continued growth.
Here's a rundown of the key results Nala has seen since onboarding Monocle:
- 46% increase in ARPU
- 41% increase in CVR
- 11% increase in AOV
As an early adopter of Monocle, Phil is excited to see how the tool will evolve and support Nala's continued growth. Moving forward, he plans to use Monocle as the heart of Nala's promotions strategy, implementing the tool across all flows.
"Knowing our personalization strategy is more data-driven than ever before is a breath of fresh air for our team. Monocle is a no-brainer for any brand that has a discounting component to its ecommerce strategy."
