Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers / How a Pet Brand Uses Order Add-Ons to Boost Repeat Rate
Transcript
- Lucas: If these marketing conversations have sparked something you've actually used at work, you're exactly who this show is for. And the way these stay ad-free — no sponsors, no prerolls — is listener support. So if today is useful to you, buy me a coffee dot com slash fexingo. Luna: Yeah, that's what keeps the lights on here. Just a small gesture if the show's been valuable. Lucas: And now, let's talk about a specific retention lever that most brands underuse: the post-purchase add-on. I've been looking at a pet brand called Bark & Root. They sell premium kibble and treats, mostly through their site. What they did earlier this year was simple: after a customer adds a bag of food to their cart, they offer a dental chew at a slight discount — just two dollars off. But the key is when they present it. Luna: Is it on the checkout page or after payment? Lucas: After payment. The order confirmation page. That's the counterintuitive part. Most brands try to upsell during checkout, but Bark & Root found that once the purchase is complete, the customer feels a sense of relief — they're already committed. So a small add-on feels like a discovery, not a push. They tested this against a version that showed the add-on on the cart page. The post-purchase version had a 36% higher conversion rate on the add-on itself. Luna: Interesting. So the psychology shifts from 'you want me to spend more' to 'here's something you might have missed.' Lucas: Exactly. And the result is a 22% lift in repeat purchase rate within 90 days. Because customers who bought the add-on were more likely to come back for a full bag of food later. The add-on acts as a trial: if they like the dental chew, they'll add it to their next order. It's a low-risk way to increase basket size and loyalty at the same time. Luna: I want to dig into the numbers. Was the 22% lift just from the add-on buyers, or weighted across all customers? Lucas: Across all customers who saw the offer, compared to a control group that didn't see any add-on. So it's a net effect. The brand also tracked that customers who bought the add-on had a 40% higher repeat rate than those who didn't. But the 22% is the overall lift including people who ignored the offer. That's a strong signal that the offer itself — even if not taken — can prime the customer for future engagement. Luna: How does that work? Priming? Lucas: The hypothesis is that the add-on signals the brand is thinking about the customer's needs beyond the initial purchase. It's a service touchpoint. Bark & Root's copy reads: 'We noticed you're getting our chicken formula kibble. Many customers pair it with our dental chew for complete oral care.' It's educational, not salesy. That builds trust. Luna: I tried something similar at a tea brand I consulted for, but it bombed. We offered a tea infuser after a customer bought loose-leaf tea. The conversion was under 2%. Lucas: What was the price difference? Luna: The infuser was about eight dollars, and the tea was fifteen. The discount was only a dollar. Maybe the value wasn't compelling enough. Lucas: That's probably part of it. Bark & Root's dental chew is normally six dollars, offered at four dollars — a 33% discount. The perceived savings need to be clear. Also, the add-on needs to be a consumable that complements the main product, not a one-time tool. A dental chew gets used up; a tea infuser lasts forever. So the repeat-purchase logic is weaker. Luna: Right. So add-ons that are also consumables create a habit loop. You buy the kibble, you try the chew, next time you add both. Lucas: Exactly. And the timing matters: Bark & Root follows up with an email sequence that references the add-on. If the customer bought the dental chew, they get an email three weeks later saying 'running low on dental chews?' That email has a 12% click-through rate, compared to their standard replenishment email at 8%. Luna: So the add-on actually improves the performance of subsequent retention emails. Lucas: Yes. Because the customer has already expressed interest in that product category. It segments them automatically. The brand can then send more targeted offers — like a bundle deal on kibble plus chews. They tested that, and the bundle had a 50% higher conversion than selling each separately. Luna: Let's talk about the downside. Could add-ons ever hurt retention? Like if the customer feels nickel and dimed? Lucas: Absolutely. Bark & Root was careful: they only show one add-on per order, and only if it's genuinely complementary. They don't show a second or third suggestion. And the offer disappears after the confirmation page. No pop-ups, no emails about 'you left something behind.' Because that would feel pushy. The key is to make it feel like a helpful suggestion, not an upsell. Luna: That aligns with the concept of 'value-acknowledgment' I've read about. The brand is acknowledging the customer's choice and offering a natural next step. Lucas: Right. And the data backs it up. Bark & Root's net promoter score actually increased slightly among customers who saw the add-on, even if they didn't buy. The brand surveyed a sample and found that 70% of customers appreciated the suggestion, 20% were neutral, and only 10% found it annoying. So the risk is low if done right. Luna: What about the logistics? Does the add-on ship with the main order? Lucas: Yes, that's important. No separate shipping. The add-on is packed in the same box. Bark & Root's warehouse team inserts it automatically. That keeps the experience seamless. If the add-on shipped separately, it would increase costs and reduce the 'surprise' factor. Luna: So for a brand thinking about implementing this, what's the first step? Should they test on a small segment first? Lucas: Yes, and start with one product that has a high complementarity score — meaning customers who buy product A are statistically likely to buy product B based on past purchases. Then run an A/B test: 10% of your audience sees the add-on offer post-purchase, 10% sees nothing. Measure repeat rate at 60 and 90 days. If you see a lift above 10%, roll it out to more customers. Luna: And what about the discount level? Is there a rule of thumb? Lucas: Bark & Root's 33% off worked. The tea brand's 12.5% off didn't. I'd say aim for at least 20% off the add-on, but make sure the final price still covers your margin. The goal isn't to lose money on the add-on; it's to increase lifetime value from the main product. Luna: One thing I wonder: does this work for service-based businesses, not just physical products? Lucas: It can. For example, a SaaS company could offer a discounted add-on feature after a user signs up for the core plan. But the psychology is a bit different because there's no physical package. The key is to present the add-on at the moment of confirmation — when the user feels good about signing up. I've seen a project management tool offer a premium template pack after trial conversion, and it lifted upgrade rate by 15%. Luna: That's a great parallel. So the framework is: find a natural companion, offer a clear discount, present it after purchase, and follow up with targeted replenishment emails. That's a solid blueprint. Lucas: Exactly. And it's a blueprint that most brands haven't fully optimized. Bark & Root's case shows that even a simple, one-product add-on can drive meaningful retention improvements. The key is execution: the right product, the right discount, the right timing. Luna: I think we should also mention the downside of getting it wrong. If you choose a dud add-on, you might waste customers' attention and dilute the brand experience. Lucas: Absolutely. Test with a small group first, and use the data to decide. Don't assume your intuition is correct. The tea brand's failure is a good reminder that not every complementary product is a good add-on. The add-on should be consumable, affordable, and clearly valuable. Luna: Well, this has been a really practical episode. I know I'm going to look at my own purchases with a new eye — noticing which brands do the post-purchase add-on well. Lucas: Same here. And if you have a success story or a failure with add-ons, we'd love to hear about it. You can reach us through the show's page. For now, thanks for listening, and we'll see you next time.