How Peter Manning Acquired New Customers by Solving Size and Fit Challenges

About

Peter Manning NYC is a menswear brand dedicated to providing stylish clothing for shorter men. With a focus on quality and contemporary design, Peter Manning offers a range of apparel that combines comfort and style, ensuring fashionable options that fit well.

Challenge

As a premium brand selling clothes based on fit, Peter Manning faces sizing, price sensitivity, and customer acquisition challenges.

Increase Website Conversion Rates

Peter Manning tried various website tools, conversion rate optimization strategies, and other tactics to boost conversions, but none made a significant impact. The true value of Peter Manning's quality, style, and fit is best appreciated in person, where shoppers can fully experience their products. However, the limitations of a two-dimensional online experience led to low conversion rates.

Reduce Customer Acquisition Costs

As customer acquisition costs increased across the industry, Peter Manning searched for creative new strategies to reduce CPAs. Rather than testing a series of small optimizations to yield incremental results, at best, they instead searched for a more comprehensive strategy to truly solve the customer acquisition problem at its core.

Solve Fit and Sizing Pain Points

Managing return rates has been a persistent challenge for Peter Manning, impacting profitability. The costs associated with processing and restocking returns underscored the necessity of driving higher contribution margins. Addressing these fit and sizing concerns was crucial for both customer satisfaction and financial health.

Solution

Try Before You Buy directly addressed the size and fit pain point, resulting in profitable new customer acquisition.

To improve online conversion rates, customer lifetime value, and overall contribution margin, Peter Manning implemented TryNow. Their Try Before You Buy program allows customers to experience the perfect fit and quality of items in the comfort of their homes, only paying for what they keep. Shoppers could try up to 7 items at home for 7 days after delivery.

Peter Manning added the TryNow button to all product categories to drive the strongest conversion rate and lifetime value improvements. They also created a dedicated collection page that they use as a landing page for their marketing campaigns.

“TryNow is a simple shift that drives profitable growth. It’s hands down the biggest driver of new customer acquisition and is beloved by our customers. It’s the future and will soon become as prevalent as free shipping and easy returns.” - Jeff Hansen, CEO, Peter Manning NYC.

Peter Manning set up their Try Before You Buy Program to encourage higher-value orders:

• Shoppers check out with Try Before You Buy.
• Shoppers can try up to 7 items for 7 days at home.
• Shoppers can easily keep what they love, return what they don’t, and only pay for what they keep.

Results

TryNow increased conversion rates, reduced customer acquisition costs, and drove a strong ROI after return costs.

In their first 7 months since launching TryNow, Peter Manning has seen step-function change across almost every aspect of their business — they have seen a 44.7% increase in product page conversion rates, a 68.8% reduction in CPAs, and a 28.2x ROI after incremental return costs.

44.7% increase in product page conversion rates after implementing TryNow

By adding a second option to Try Before You Buy with TryNow, Peter Manning is converting 44.7% more than before implementation (with only the buy now option). By providing customers with a $0 cart at checkout, where customers can try products on, and only pay for what they keep, Peter Manning is leveraging TryNow to create a premium shopper experience that solves their key pain points around size and fit. With a premium product that is tailored specifically for shorter men, size and fit means everything.

85.7% increase in new-to-brand rate on TryNow orders

The conversion rate increases driven by TryNow fuel their new customer acquisition. TryNow orders have an 85% increase in new-to-brand rate compared to their standard online orders. 39% of TryNow orders were from first-time customers whereas 21% of buy now customers were from first-time customers. This dynamic increased new customer additions of 17.7% attributed to TryNow.

45.8% increase in conversion rates

Peter Manning partnered with Omnia1 Analytics, a best-in-class growth marketing agency that leveraged TryLinks to create high-converting funnels. Omnia, in partnership with Peter Manning, created high-converting funnels that drove a 45.8% increase in conversion rates — 7.0% on TryNow ads vs. 4.8% on their previously highest performing ads. This resulted in a 68.8% reduction in customer acquisition costs.

28.2x Return on Investment after accounting for incremental return costs.

Peter Manning is seeing a 28.2x ROI on their TryNow program. The TryNow ROI calculation determines the profitability of using the TryNow service by taking the net revenue generated from TryNow orders, subtracting the fees paid to TryNow as well as all additional costs like return shipping and restocking, and then dividing by the TryNow fees paid to show the true, fully burdened ROI.

“TryNow’s pricing is order-to-order with no long-term commitments. Their confidence in their own product made it a no-brainer. When you sell a product this good, you don’t need long-term contracts. TryNow just delivers on what they tell you they will. It’s as simple as that. Jeff Hansen, CEO, Peter Manning NYC.

TryNow is the biggest driver in a customer experience improvement for Peter Manning shoppers:

"Works great!! Like having the opportunity to see, feel, and try on clothing with TryNow. Old school shoppers living in a buy online world...doesn't always work out for me. You folks made me a believer that customer satisfaction still exists." - Gary B.

"I was surprised how easy it was! We love the pants and the Try Now option of not being charged until I confirmed I wanted the article of clothing - Barbara T.”

"It's like giving you the luxury to try things on without having to worry about the payment first. It's better than the concept of returning items." - Brian B.