Optimizing Creative Lighting's Free Shipping Strategy with Curvature AI
Curvature helped Creative Lighting find the perfect free shipping threshold with the help of AI.
Creative Lighting are a Swedish company based in Stockholm, driven by a passion for creative lighting solutions. Their products reflect their love for Scandinavian design, blending aesthetic simplicity with smart, technical functionality to lighten and simplify everyday life.
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The Setup
The brand had been operating under the same gut-feel determined offer architecture for while, including free shipping on all orders and quantity-based discounts. They wanted to understand how playing with these settings would affect underlying profitability, so they introduced a free shipping threshold, and then removed quantity-discounts on some of their products.
The Results
The AI isolated the effect of the free shipping threshold on their conversion rate and average order value, and then output a model of profit per visitor at various thresholds.
The AI could also infer the impact of quantity discounts on the store metrics, and recommend a per-product discounting strategy.
Finally, the experiment interventions helped the AI identify certain countries where price elasticity was different to the average, creating a plan for a currency specific price test.
"It offers endless opportunities to analyze adjustments to your online store's features, allowing you to optimize profitability."
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