Table of Contents
- Introduction
- Foundations of House of Malt
- Navigating Challenges: Brexit and COVID-19
- Optimizing with Data Insights
- Leveraging Apple Pay and WooPayments for Increased AOV
- Future Horizons: International Expansion
- Enhancing Product Offerings and Customer Experience
- Conclusion
- FAQ
Introduction
Imagine owning a specialty whiskey shop facing the trials of Brexit and a global pandemic. House of Malt, a family business based in Northern England, navigated these challenges and emerged stronger, becoming one of the UK's top online whiskey retailers. This post explores the transformative journey of House of Malt, detailing how they leveraged WooCommerce and innovative payment solutions like Apple Pay to elevate their business, enhancing their average order value (AOV) by an impressive 22%.
Foundations of House of Malt
House of Malt was founded in 2015, and since then, the business has flourished into a leading destination for specialty whiskeys in the UK. Their operations are based out of Northern England, featuring both a physical retail store and a warehouse. However, the majority of their sales transpire online through their robust WooCommerce platform, which they adopted in 2017.
Why WooCommerce?
The decision to use WooCommerce stemmed from its high customizability and the autonomy it provided. Traditional eCommerce platforms often come with heavy regulations, especially pertinent to alcohol sales. WooCommerce allowed House of Malt to maintain control over their online business operations, a crucial factor in their sustained growth.
WooCommerce's partnership through the Enterprise Ecommerce program also significantly boosted their cash flow, reducing the deposit time from seven days to just one day. These enhancements contributed to their working capital and facilitated business growth.
Navigating Challenges: Brexit and COVID-19
Like many British businesses, House of Malt felt the sting of Brexit, particularly through export tax levies which compelled them to refocus on the UK market. This strategic shift proved fruitful as they cemented their position among the top three online specialist whiskey retailers in the UK.
The COVID-19 pandemic brought another wave of challenges. Nevertheless, House of Malt adapted swiftly, relying solely on their WooCommerce website to operate while physical stores were closed. This resilience ensured continuity during a period when many businesses struggled to survive.
Optimizing with Data Insights
House of Malt's success isn't just about adapting to external challenges; it's also about understanding their customers. They break down their customer base into four distinct categories, each with unique needs and preferences. This segmentation informs their marketing strategies and is particularly useful given the advertising restrictions on alcohol merchants. Their strong email marketing program helps overcome such barriers, ensuring they stay connected with their audience.
Leveraging Apple Pay and WooPayments for Increased AOV
In a significant move, House of Malt integrated multiple payment methods, including PayPal and Apple Pay through WooPayments. This decision was driven by their user demographics; the majority of their customers use mobile devices and browse via Safari. Offering Apple Pay, which is characterized by minimal friction, resulted in a noticeable uptick in conversion rates and customer satisfaction.
Since implementing Apple Pay, House of Malt experienced a remarkable 22% increase in average order value. This isn't just about adding a payment option; it's about streamlining the user experience. The elimination of complex payment steps encourages customers to complete their purchases, boosting overall sales.
The Importance of Diverse Payment Solutions
Additional payment methods have also played a critical role in House of Malt’s growth. Jethro Hazelhurst, the Ecommerce Director, emphasizes the correlation between diverse payment options and higher conversion rates. Their focus on expanding Buy Now, Pay Later (BNPL) solutions further enhances this strategy, making it easier for customers to engage in higher-value transactions.
Future Horizons: International Expansion
Looking forward, House of Malt plans to extend their reach beyond the UK. Their initial focus will be Europe, followed by the US market. This international expansion will involve new shipping partnerships and sophisticated logistics to ensure a seamless customer experience. Their expansion is also supported by a new warehouse, primed to handle high order volumes, especially during peak seasons like the holidays.
Enhancing Product Offerings and Customer Experience
Beyond geographical expansion, House of Malt is constantly evolving their product catalog and site experience. They aim to introduce a subscription service and loyalty program, catering to their repeat customers. This initiative is in line with their commitment to enriching customer engagement and satisfaction.
The business is also exploring additional payment options to accommodate various customer preferences. Continued development in this area, especially in BNPL options, is expected to drive further growth in average order value.
Conclusion
House of Malt's journey is a testament to the power of adaptability and innovation in eCommerce. By integrating WooCommerce and Apple Pay, they not only navigated significant external challenges but also achieved a substantial increase in average order value and conversion rates. Their story illustrates the critical importance of understanding customer needs and leveraging technology to meet those needs effectively.
As they prepare for international expansion and continue to enhance their product offerings, House of Malt stands as a beacon of success, driven by a deep understanding of their market and a commitment to providing exceptional customer experiences.
FAQ
What is House of Malt?
House of Malt is a family-owned business based in Northern England, specializing in the sale of specialty whiskeys and spirits. They operate both a retail location and a robust online store through WooCommerce.
How did House of Malt increase their average order value?
By integrating Apple Pay and other diverse payment methods through WooPayments, House of Malt reduced payment friction, leading to a 22% increase in average order value.
What challenges did House of Malt face during Brexit and COVID-19?
During Brexit, export tax levies prompted a strategic shift to focus exclusively on the UK market. The COVID-19 pandemic forced them to rely solely on their online store, which helped sustain their business during uncertain times.
What future plans does House of Malt have?
House of Malt plans to expand internationally, starting with Europe and then moving to the US. They are also enhancing their product catalog, developing a subscription service, and exploring additional payment options to cater to diverse customer preferences.
How important are payment options to House of Malt's strategy?
Payment options are crucial to House of Malt's strategy. By providing a variety of payment methods, including BNPL, they enhance customer satisfaction and drive higher conversion rates.
