Kronans Apotek

Kronans Apotek boosts net margin revenue by 11% and greener deliveries by 25% through A/B testing

Learn how you can experiment with profitable delivery pricing and promote sustainable deliveries

Overview

Kronans Apotek has over 320 pharmacies throughout Sweden, from Skåne in the south to Lapland in the north, and quick e-commerce deliveries all across the country. They offer prescription, health and beauty products tailored to anyone's needs.

Conversionista! is the no. 1 consultancy for growth and experimentation with a portfolio of 1000+ client projects since being established in 2010. They use scientific methods to reveal their clients' growth potential and improve the user experience whilst helping companies reach sustainable business growth.

Challenge

Together with Conversionista!, Kronans Apotek identified three business challenges in relation to the delivery pricing strategy and sustainability:

  • Low order value purchases were found to affect the profit margins;
  • Product revenue margins weren't enough to cover the costs of deliveries;
  • Kronans Apotek consumers faced little incentive to choose greener delivery options. 

Solution

Conversionista! created a hypothesis and started experimenting with the built-in A/B testing functionality of Ingrid Delivery Checkout. 

They replaced the pre-selected free delivery option with a greener delivery method, presented at the top of the delivery checkout. Then, they explored five delivery cost combinations to identify which price would give the best conversion outcome.

Results

Pricing experimentation paid off. Kronans Apotek eliminated low value orders that had a negative impact on profit margins — with a 14% reduction in conversion rate and 11% boost in net margin revenue — and helped their customers make more sustainable delivery decisions. 

25%
Increase in greener delivery options used
11%
Increase in net margin revenue

Profitable and sustainable

"We have been really good at optimising the delivery experience, from checkout to when the customer gets their products. We now also have phenomenal tools to reliably control the customer offer at all times based on our business goals."

David Wolgers
Head of Product Management at Kronans Apotek