About the Company
Tamara Mellon redefines luxury, offering high-end shoes that are designed for women, by women. Scarred by her prior experience as the co-founder of Jimmy Choo, founder Tamara Mellon started her namesake direct-to-consumer brand with one singular goal: prove that impeccable style and female empowerment go hand-in-hand — after all, these are shoes made for leaning in, climbing ladders, and shattering ceilings.
PriceBot
Price Optimization
United States
Footwear
The Goal
After belatedly winding down their brick-and-mortar distribution channels, Tamara Mellon became solely focused on making sure revenue from their e-commerce channel (built on Shopify Plus) scaled as aggressively as their ambitions. Tamara Mellon wasn’t interested in testing new prices for their best sellers — instead, they came to Tontine after being approached by outrageously expensive pricing consultants ($250k+) offering to help determine the perfect price for new products they’re planning on rolling out. The company understood the importance of landing on the perfect price to ensure they’re not leaving money on the table — but not why the process had to cost an arm and a leg.
The Strategy
Since these were entirely new products in the market without an established price point ingrained in customers’ minds, we rolled out a new adaptive test configuration specifically for Tamara Mellon called the multi-armed bandit (MAB). The MAB is intricate yet unorthodox for one specific reason: ditching the usual guess-and-check process, the MAB test configuration allows Tontine’s experts to set a ceiling and floor price, and from there, the pricing engine will automatically create four price points (at the 25%, 50%, 75% and 100% point) and dynamically allocate traffic towards the winning prices, thus ensuring that at the end of the test, there’s conclusively and definitively one winning price. Further, in order to ensure that Tamara Mellon’s Facebook/Instagram audiences are excluded from the price tests (to reduce channel conversion bias due to exposure to a different price), Tontine’s experts utilized the platform’s UTM parameters filtering functionality to effectively redirect traffic as expected.
The Results
Tamara Mellon’s team was so thrilled with the results that they quickly committed to using data provided by Tontine to drive their decisions around paid media targeting and on-site merchandising. An example of the lasting impact Tontine has made? Internally, the team forecasted the iconic Crystalline pumps to retail for ~$600, but with insights derived entirely from Tontine’s price tests, it became clear that they could price higher without seeing a drop in conversions. Today, a pair of Crystalline pumps retails for $895.
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"How do you know if you’re charging the maximum customers are willing to pay? You don’t. We certainly didn’t. That’s why we use Tontine."
“Finding the best price for each of our products is a lot faster with Tontine. And in our industry, that means we’re able to bring a product that’s on-trend to market a lot quicker.”
"Working with Tontine is as hands-on/off as you’d like. The Price Optimization Experts ensure they’re consistently delivering value without becoming another burdensome platform to manage."
"When we started working with Tontine, they promised us full control, incredible support, and clear-cut ROI. They’ve delivered. You won’t find a more professional & accommodating team elsewhere."
"How do you stay ahead of the rapidly evolving landscape in such a competitive industry? You reconsider every aspect of your business regularly — starting with pricing."
“Tontine’s A/B testing system is very different from anything we’ve used previously — it’s undeniably more effective and impactful.”
“Tontine makes it easy for our team to focus on developing new marketing initiatives rather than the operations of price testing. With Tontine, we’re in good hands.”
"Risk-free price testing is an insurmountable challenge with our complicated custom infrastructure… rarely do you find a team so helpful and willing to dive straight into it to ensure everything is set up perfectly."
“Tontine basically provides the ground truth for any product release, since it starts with pricing. This is a very, very critical piece to the way we operate.”
"Tontine is the best kept secret for Shopify retailers. We can now safely adjust our prices to maximize profit without losing customers, because we have the data to back it up."
"Our D2C channel was a loss leader in our revenue mix— until we started working with Tontine. This was the path of least resistance to growing our revenue without any associated overhead."
"Clients typically see a 5-7x ROI increase on their creative assets even without extensive CRO work — Tontine is our unfair advantage."
"Tontine helped us test different price points for new products with a group of superfans, so when we released the products publicly, it was at the most profitable price."
“Kudos to Tontine’s team for meeting our extremely strict standards and SLAs. The whole Tontine team stepped up and worked hand-in-hand with us to meet our needs.”
"Tontine is a true partner, rather than just another vendor. We rely on them for strategic insights, competitive market analysis, and most importantly, reliable price test results."
"Truly a no-brainer: Tontine is the go-to solution if you’re trying to focus on your business’ bottom line instead of just optimizing for the top line. For us, this is the most important profit lever we have in our toolkit."
"Our biggest concern was the technical lift needed to integrate with Tontine. Thankfully, their Implementation Specialists handled it all, and didn’t stop working until we were satisfied."
"We haven’t discovered an A/B testing solution that prioritizes protecting our brand integrity as much as Tontine has. The only solution that’s truly compatible with our stack."
“Tontine’s AI engine, PriceBot, is exceptional… the more data it ingests, the better it gets at predicting prices, even for unreleased products.”
“We can’t fathom of an easier or faster way to price test our products and receive a decisive result in just days. Tontine is integral to our merchandising strategy.”
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