La Redoute thrives with experimentation on payment methods

How an iterative experimentation strategy allowed La Redoute to promote new payment methods while de-risking the impact on overall sales

With the use of our analytics, user research tools and user insights, REO helped us increase our sales and come up with a winning design through iterative experimentation. The proof of concept design helped us add a commercial ticket value to the project. Their professional, agile and efficient ways of working along with collaboration throughout the testing process is appreciated across the business!

La Redoute
Increase in click
through rate to the
credit application
page
0 %
Uplift in credit
applications
0 %
Increase in credit
applications being
accepted
0 %
Increase in (credit
account) orders
0 %

Our contributions

Tech partners

La Redoute

La Redoute is one of the largest French multi-channel retailers. Established in 1837, they have over 10 million customers worldwide.

Creating more than 70% of its collections in-house, and generating a business volume of €875 million (2019). La Redoute is present it seven countries : Belgium, Italy, Portugal, Russia, Spain, Switzerland and the United Kingdom.

Challenges

“La Redoute recognised credit customers had higher lifetime value but weren’t sure how to maximise the opportunity”
La Redoute knew the lifetime value of credit customers was higher (than non-credit customers). Knowing this, they wanted to experiment with their credit account option alongside other payment methods.

The aim of the experimentation programme was threefold:

1. Increase credit applications
2. Increase the quality of (Credit) applications
3. Not adversely impact non-credit (Cash) payment journey

The REO approach

“The team at REO put together an iterative experimentation strategy. This approach minimised the risk at such a crucial step of the journey, while allowing REO’s experimentation experts to understand the influence of each and every subtle change”

Fundamentally for the experimentation to be successful it was important that both payment options (Cash & Credit) were clearly available to La Redoute customers. An initial UX and competitor review highlighted that the “Credit Account” information on the payment page could be improved with:

While it was also noted that other retailers emphasised their credit account at checkout by reducing the prominence of alternative payment methods.

Armed with this insight, the team at REO put together an iterative experimentation strategy. This approach minimised the risk at such a crucial step of the journey, while allowing REO’s experimentation experts to understand the influence of each and every subtle change. A series of experiments were conducted, each one building on the previous.

Deliverables

The stepped iterative approach first sought to maintain the current functionality of the credit payment option, allowing the section to expand, offering more information and a more engaging design.

Before

After
Taking the learnings from the first experiment and using the winning variation as the (new) control, the drop-down was removed and the information condensed into three clear USPs, to help increase engagement and encourage people to choose the credit option.
Before
After

A final iteration was created, again keeping the previous winning variation as the (new) control. Building on the 2 previous experiments, REO’s experimentation team decided to hide the other payment options from the page, with only a discreet link to expand them.

Before
After

The outcome

The results were very positive and demonstrate that the strategy put forward by the team at REO was a real success. La Redoute and REO continue to push the boundaries of experimentation.

The final winning design resulted in:

• 35% increase in click through rate to the credit application page
• 10.3% uplift in credit applications
• 12% increase in credit applications being accepted
• 15% increase in (credit account) orders
• No decline in overall transactions

This series of 3 iterative experiments took the La Redoute CRO programme from the first maturity stage (Basic CRO) into the second stage (Strategic CRO).

Taking the learnings from a single experiment and using it to inform the future roadmap is a key difference for strategic CRO compared to ad-hoc tests conducted in isolation, which often lead to inconclusive results.

– Matt Maidment, Head of CX

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