Subscription box company Candy Club improve conversion rates by over 40% with PCA Predict

Candy Club is a subscription-model company delivering delicious, hard to find and nostalgic candy to customers’ doors each month. Offering a totally online business proposition Candy Club is able to provide discounted prices compared with its bricks-and-mortar confectionery competitors.

As a comparatively new company Candy Club’s success has been built upon giving its website customers the very best user experience and this was behind its decision to adopt PCA Predict’s address verification technology as part of its ordering and checkout process.

With a goal of delivering a box of happiness to members doors all year round, address verification ensures that Candy Club’s sweet consignments land on the right doorstep on time, every time.

Before PCA Predict we used a competitor product which was a very basic address verification service. The problem was that the captured addresses did not match the address formats used by our courier service which resulted in high volumes of customer orders being rejected at the point of despatch.

Since moving to PCA Predict we’ve increased conversions by 40%

By moving to PCA Predict’s address verification we discovered that not only had the solution streamlined our checkout process by making it much faster but conversion rate metrics indicated a staggering 40% increase. Admittedly we had made a series of enhancements to our checkout process but I personally feel that the introduction of PCA Predict’s address verification tool was the main reason for the increases in conversions reflecting significant improvements in profit margin.

Address verification reduced cart abandonments as well as completely tightening up the postal delivery process mitigating shipment failure. Shipping in excess of 30,000 customer consignments per month, prior to the deployment of PCA Predict’s solution, Candy Club was experiencing 1,500 of orders being returned; an astonishing 5%.

The cost of redelivering the returned orders resulted in huge postal charges as well as the valuable admin time spent in rectifying the errors. In addition, there are more unquantifiable negative impacts that delays in customer deliveries cause such as reputational damage. After all, customers that have a bad experience are unlikely to recommend Candy Club to friends and family.

Operationally by using PCA Predict’s address verification tool one our biggest challenges has been solved. Candy Club has five contact centre operatives and before the service was deployed they were having to deal with the headache of reprocessing failed deliveries. Having address verification has enabled them to focus on taking new orders and made them far more productive.

The value of the service we get from PCA Predict has been paid back multiple times. We really got a speedy ROI as in the first month of the deployment of PCA Predict’s addressing solution it’s actually paid for itself by saving us literally thousands of dollars. On top of that we’ve significantly improved customer user experience.

– Andy Moeck, CTO, Candy Club