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How Online Business Owner Michael Morgenstein Leverages Candy Rack for Retail Success

Alla Udovenko

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September 7, 2021

How Online Business Owner Michael Morgenstein Leverages Candy Rack for Retail Success

This is the story of retail entrepreneur Michael Morgenstein, aka Mike Morg, who’s successfully implemented upselling and cross-selling strategies with Candy Rack for two of his online businesses. Read on to learn more about how Mike has leveraged the app to boost both average order value and upsell

How Online Business Owner Michael Morgenstein Leverages Candy Rack for Retail Success

Mike initially installed Candy Rack for his holiday decorations store OrnamentallyYou. Impressed with the smooth setup, he then decided to get the app up and running on his other online store Hipsters Remedy

Candy Rack Pop-up on OrmentallyYou store
“I found Candy Rack as a way to increase the AOV (Average Order Value). Set up was easy and customer service was outstanding. AOV has increased over 10% last time I checked, but best of all, it's working. I see that people are using the Candy Rack discounts. I'm very satisfied!” - said Mike Morg

About OrnamentallyYou

The idea for OrnamentallyYou all started with Mike’s passion for the holiday season - the time we all associate with good vibes, joy and kinship. The store’s goal is to become a go-to destination for holiday decorations. A place where customers are graced with a positive experience and discover gifts they truly cherish, whether for a specific occasion or all year long.  

As Mike himself puts it: “An ornament is not just the Christmas ornament itself, but by definition it is a thing used to make something look more attractive. Our store’s diverse catalogue is destined to peak your interest, adorn your home, and symbolize the merriment and joy of the holidays … We strive to create an unparalleled experience and atmosphere, and hopefully that makes us the best at what we do.”
OrnamentallyYou Storefront
“Our hearts are on our products and our products are on our hearts.” - OrnamentallyYou

About Hipsters Remedy

Apparel brand Hipsters Remedy was founded on Etsy in 2020 followed by the launch of the official store website in January 2021. 

Mike got the ball rolling by outsourcing to a production partner before investing everything he had into purchasing the equipment and commercial space needed to grow the business online. When coming up with a name, his idea was to encapsulate the appeal of the brand designs in all their variety. And from that seed, Hipstersremedy.com was born. The definition of hipster according to the dictionary is “a person who follows the latest trends and fashions, especially those regarded as being outside the cultural mainstream”. And a remedy is of course a cure and something that's necessary for your existence. Put the two together and you have this new, unique, and fledgling fashion brand.

Hipsters Remedy Storefront

The vision for the store is to create an apparel brand that is unique but not necessarily narrowly eccentric - from cool to sweet to badass but not cheap. Looking forward, they strive to be a premier player in the fashion industry and hope to sooner rather than later expand into categories such as hoodies, long sleeves, dresses and bodysuits.

Interview

We asked Mike a couple of questions about his experience with Candy Rack. Here’s what he had to say:

What motivated you to start looking for an upsell app?

As many ecommerce business owners can probably relate, I've asked myself how can I increase my store’s average order value (AOV). An overall increase in your store’s average order amount leaves more padding for marketing dollars to be spent to acquire each customer. This is exemplified especially when your typical product is a low cost product. For OrnamentallyYou, our ceramic ornament prices are typically $10.99. Even at a discount, the addition of more ornaments amounts to more revenue. This in turn means more leeway for advertising campaigns. 

How did you find out about Candy Rack?

I don’t remember exactly, but I know I saw it one to two times before I had actually decided to install it. I think the final time was when it was featured in an article. 

Why did you choose Candy Rack over other upsell apps on Shopify? Are you happy with your choice?

What made me choose Candy Rack and stick with it was the ease of implementation and use, it’s interface, and the attentive customer service experience I had gotten right after my initial installation. I’m definitely satisfied with my choice. 

What benefits has Candy Rack brought to your store? How’s it helping your business?

Candy Rack is more than just a basic upsell software. You can edit the copy in the upsell and target specific products. Candy Rack has benefitted us because it has increased our average order value. Before installing it on Hipsters Remedy, we saw our average orders come out to between $38-$40. Since, we are seeing an average order value of around $42-$44. That’s an approximately 5-10% increase in the average order total. For one, or two orders, it doesn’t seem like the biggest deal. But when you extrapolate it and consider your yearly total, it adds up. You tell me, how much does an extra %5-%10 come out to for your business?

When did you first start seeing results?

Immediately I saw customers that had added extra products to their cart and purchased thanks exclusively to the application. 

What’s the total number of purchased upsells (sales) in the last 30 days? What’s your take rate?

The results of the first month after the Candy Rack App installation for Hipsters Remedy are displayed below. 

Smart Auto-Upsell results for the last 30 days

The upsell offer take rate is 6.52%, which makes $240 dollars in sales.

Could you give us a few words on your upsell strategy? Which of the upsell options do you like best?

I personally like the “smart auto-upsell” (or something of that nature) option. Essentially, it’s an AI software that automatically chooses which products to display in the upsell. It learns based off customer’s behavior. For a large catalogue store such as OrnamentallyYou, this is a great option. I put a discount on my upsell items, and use words like “limited time offer” to create a sense of urgency. It’s the truth as well. 

How do you find the pop-up design?

The interface is great. I hesitated installing an application for upsells initially because I had pre-judged them as being spammy. It truly looks nice and professional, and doesn’t give you a spam feeling. Hence, why our conversation rate didn’t drop after it’s installation. 

Are there any changes or improvements you’d like to see implemented on Candy Rack?

Being able to integrate a faster processing upsell on the add-to-cart page. I apologize if this is available already, but I believe it isn’t. Not that I need it now anyways, but it’s something i’m highly considering for the future once we have a system in place to actually prioritize those orders. 

Would you recommend Candy Rack to other Shopify merchants? Who would you recommend the app to mainly?

My company, OrnamentallyYou, sells primarily inexpensive Christmas ornaments. The upsell app allows them to easily shop for more and the assumption is that you don’t go Christmas shopping for just one ornament. I think this is the perfect example of a store that can use it - AKA - a product that can easily be added on to someone’s cart. Nevertheless, I cannot conceive of a type of merchant that the Candy Rack Upsell App would not be beneficial for. If it makes more money, it makes more sense. 

What are your plans for the future?

Our plan is to have a bigger and more diverse offering in my store. This way, we can introduce customers to products across categories (e.g. upselling t-shirt customers a nice pair of jeans). To upsell different kinds of products in different categories would be beneficial as it can be a great way to introduce my customers to different types of products. Therefore, they will get a more encapsulating experience of our brand which will increase brand loyalty and repeat purchasing.

Try Candy Rack fo Yourself

As you read the success story of Mike and his two businesses you might be willing to implement upselling strategies also for your Shopify store. Trusted by over 4000 merchants, Candy Rack allows users to easily create upsell & cross-sells offers and display them on products pages when a customer clicks on the “Add to Cart” button. An effective pop-up helps to increase sales up to 30%.  

Candy Rack is priced at $49.99 per month, but you can also try a 14-day risk-free trial.

Learn how to build a perfect upsell pop-up or continue exploring other success stories with Digismoothie apps.

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