Skinnydip London sees 8x ROI using Category Merchandising, covering annual cost in just one month

About Skinnydip

Skinnydip London was born shortly after the launch of the Apple iPhone, with the quick realization that there were virtually no fun phone case designs on the market. Since the launch of their first phone case in 2011, the brand has grown from a small accessory company to a vanguard of contemporary trends. With 90% of the traffic coming from mobile, the brand now operates a complete online store selling affordable products that easily spur impulse purchases, 16 standalone stores across the UK, clothing collaborations with universal brands like Barbie, Disney, and The Simpsons, and a distribution network of over 200 concession stores.

A Nosto client since 2019, Skinnydip London serves up the most fun and quirky accessories, clothing, and lifestyle products for all to love and enjoy year-round.

The Challenge:

Loss of multiple sales channels and increase in digital competition due to COVID-19

In addition to generating sales through their online store, Skinnydip sells their products in over 200 concessions in the UK. With the pandemic abruptly halting brick-and-mortar shopping, their sales growth on these channels disappeared entirely. Like most brands who faced a similar loss, the brand has shifted their focus to the online experience as their sole channel for traffic and sales. 

The shift to online experiences was an opportunity and a threat for the brand with an increase in new traffic for online shopping during the pandemic. Skinnydip is one of many brands that’ve completely pivoted to online-only experiences, now competing against a sea of digitally native brands with strong footholds in the online sphere.

Balancing growing traffic with manual merchandising and minimal resources 

Having a small team made it much harder to keep up with growing customer demand. Their manual merchandising strategy put an even greater strain on their ability to foster product discovery, convert new site traffic, and nurture new shoppers into loyal customers. Additionally, if a new product was launched, Skinnydip had no visibility into how those products fit into other categories. This meant that products with great sales potential would often end up in the wrong places and not visible to the customer, causing the brand to miss out on the crucial initial sales window.

Skinnydip needed a solution to eliminate an extremely laborious process with limited resources and traffic on the rise. They also needed to eliminate guesswork that often led to human error and adopt a merchandising strategy that uses data to drive decisions.

The Solution:

Skinnydip wanted to clear new product inventory that didn’t sell well due to their manual merchandising. So, Skinnydip set up an A/B test analyzing the impact of promoting trending products that resonate with discount-oriented shoppers and generate decent revenue per view. This variation was tested against Skinnydip’s default merchandised category page, where new items and best-selling products in the Sale category are manually mixed, and “new” products are based on the brand’s assumption of which products would perform well.

By prioritizing products with high views and above-average revenue per view, Skinnydip was able to rotate the most popular discounted inventory and increase the Sales category page conversion rate by 41% and click-through rate (CTR) by 59%.

Skinnydip also wanted to test the impact of showcasing popular products within their Beauty, Clothing, and Phone Case and Accessories Category pages that generate good returns through revenue per view. 

In this test, new, non-discounted products were prioritized on their respective Category page to maximize AOV and revenue while demoting discounted items. This variation was tested against Skinnydip’s default page setup, where new and best-selling products are manually mixed, and “new” products are based on the brand’s assumption of which products would perform well– resulting in a substantial increase in conversion rate and click-through rate (CTR) across Skinnydip’s non-sale categories:

  • 36% higher conversion rate and 23% higher CTR in Beauty category Category page
  • 35% higher conversion rate and 38% increase in CTR in Phone Cases and Accessories category
  • 12% higher conversion rate and 26% increase in CTR in Clothing category

The results and impact on our CVR and revenue have been great – but the most important thing is how much time it saves. Category merchandising helps to take things off the neverending todo-list so we can focus on meeting our growth objectives.

Meghan Lewis, Head of Ecommerce, Skinnydip London

The Results:

With Category Merchandising implemented across all categories, Skinnydip is now able to automatically implement different approaches which saves them time and effort while generating more revenue. In addition, they’re now able to test the value of these approaches and make more educated assumptions that have a positive impact on their bottom line. Overall, since using category merchandising Skinnydip has achieved, a 15.61% increase in conversion rate storewide, a 16.10% increase in average visit value (AVV) storewide, and an ROI of 8x

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