How Customer Insights Accelerate Revenue Growth

Endless Gain

Flying Tiger Copenhagen is a Danish retail chain that specialises in affordable and quirky products.

The company was founded in 1995 in Copenhagen, Denmark, by Lennart Lajboschitz and has since expanded internationally. Flying Tiger Copenhagen offers a wide range of products, including home decor items, stationery, toys, kitchenware, party supplies and more.

The company’s concept revolves around offering unique and innovative products at affordable prices, with an emphasis on design and functionality.

Flying Tiger Copenhagen has experienced rapid growth over the years and has opened numerous stores across Europe and Asia, as well as investing significantly in its digital offering with growing importance being placed on its customers’ experience.

Research & Insights

Endless Gain completed a detailed piece of research to understand Flying Tiger Copenhagen’s customers’ current buying experience, with the focus being to understand friction points within the customers’ buying journey that were potentially hindering customers transacting.

Over 100 potential customers’ pain points/insights were identified. From customers’ perception of the brand in relation to the market (competitors), its pricing model, how different customer segments behaved on site, the website’s usability to facilitate customer needs, right the way through to the checkout’s ability to help customers transact quickly and seamlessly. All produced valuable insights that if acted upon could greatly improve the customers’ buying experience and accelerate Flying Tiger Copenhagen’s revenue and profit growth.

Cost of delivery harmed UK incremental sales

Flying Tiger suspected that high shipping fees were hindering sales especially in the UK, and the research validated this and importantly, highlighted the true scale of its negative impact on sales.

Flying Tiger Copenhagen’s standard delivery cost to the UK was £7, which was higher than competitors, and this was perceived negatively by customers.

It had also experimented with free delivery to the UK for orders over £70, and it had used various banners and progress bars on the website to encourage customers to spend up to this amount to get their free delivery.

The research uncovered how these methods of persuasion, had a negative effect and rather than encourage customers, it actually discouraged customers from not only buying more to reach the free delivery threshold, but even worse, the data strongly suggested that customers were abandoning their purchase because of this perceived high free delivery threshold.

Based on these insights for UK standard and free delivery, Flying Tiger Copenhagen, listened to their customers, amended their standard pricing and free delivery threshold, reducing them to a price that was deemed acceptable by their customers.

UK standard delivery went down from £7 to £5, and the UK free delivery threshold was reduced from £70 to £50.

The impact of these changes was accelerated growth.

The UK conversion rate increased by 94%, whilst average order value reduced by 21%. The overall net benefit was a 35% uplift in forecasted UK annualised incremental revenue.

“Our partnership with Endless Gain has enabled us to put robust data points against the impact that our previously high shipping prices were having on both our customer conversion and retention. This has supported us to make rapid and effective changes to our digital customer journey for our customers. I’m excited to see how working with Endless Gain more in the future will support both the understanding of our customers and the speed of our decision making when it comes to our digital user experience”

Antony Yiannaki
VP, Customer & Digital. Flying Tiger Copenhagen

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