Inside Redo | Conversion optimization with Blakely | November 13, 2025

0:00 We've been able to build an algorithm that can go and determine what their intent is to purchase, whether it is super high intent or super low intent. And we can change the experience based off of their intent. If they're a super high intent customer, like we know based off their behavior with 90 plus% certainty that they're going to buy, don't give them free shipping. Don't offer them any discount codes. Like you're getting full dollar for them.

0:23 However, we also have built it where hey, if they're lukewarm, maybe they're like, we can tell that they're searching, but we're not sure. But all of a sudden, their intent drops. Uh oh, they did something that means that their probability of buying is less. Boom. We can hit them with discount codes. We can hit them with free shipping automatically. We have this running right now on 25 merchants and we are winning 100% of these. It wins. It wins on all of them. 100%.

0:49 >> Amazing. Blakeley, very excited to have you on. I feel like it's been a long time coming. We've had a handful of conversations with GMs leading up to this and you kind of piloting a lot of different things. I feel like there's going to be some cool perspective that you have on on what we're building. So, appreciate you joining. >> For sure. >> Okay. Um, so Redo is a holistic e-commerce platform. What we're building touches every piece of the buyer journey. All of it with the goal of being able to provide very onetoone unique experience for anything pre-purchase, post-purchase, uh anything that allows you to give really a a personalized experience across an entire user journey for merchants. Impacts bottom line, impacts profits, impacts pretty much every piece of the business.

1:33 And so very exciting to be a part of. you in particular right now are heading up the conversion side of things and have been doing that probably since the beginning of it but more recently kind of jumped into the nitty-gritty side of it. So first questions first I guess as you look holistically at what Redu is building and and the entire e-commerce solution that we are building. What were the market signals that pushed you towards building this specific conversion optimization product?

1:59 >> Good question. conversion got pulled out of us, right? And I'll start with a micro story, but then kind of evolved to like where we ended up like the core of Redo when we started two years ago was differentiating on returns. And when we were in returns, we were putting something on customers websites and we we wanted to make sure that whatever we put on a merchants's website would make them more money. So we built of internal AB testing tools so that we could make sure that the whatever we presented for our merchants related to returns was a net positive to their conversion rate.

2:38 And we had a principle that like even if it was worse for redo, we would change it to be a net positive to the merchants because otherwise it does not work. We wanted redo to be a net positive no matter what. So we kind of got obsessed with this like idea of like we need to make sure that we're always improving the conversion rate. Okay. So that's where it started one side returns. Then on the other side we actually decided we're going to compete with Claio because we thought they were doing some dumb stuff. We had some ways to innovate and that was like the marketing side of things, right? So we built our email SMS tool. Well, there's an interesting gap though. Like you have a customer that's you're sending an email, you're driving them to your website. And I find it the most ridiculous thing in the world that like why aren't we giving these each of these customers a unique shopper experience to each of them that increases the conversion rate. That's where we invented the conversion cloud.

3:35 It's once somebody's on your site, we want to make sure that you can close that deal and that you can offer them the product that they want, that they need, the shipping that they want, and that they need, and that we can get them to the finish line, get the sale. Yep. Makes makes a ton of sense. I know some of the things that come up typically on those returns calls is like, "Hey, is this going to impact my conversion rate?" And so conversion rate is always very top of mind for merchants and they're paying for traffic to come from a lot of different places. And so they want to make sure that they capitalize it. And so it feels the very very natural to be able to focus products around how do you increase conversion rate because it's going to have an impact on every piece of the business.

4:10 And so makes a ton of sense. Cool. I guess dive in a little bit deeper on that piece if you can for us Blakeley on um like some of the conversations that you've had with merchants. What are some of the pain points that they've been discussing and like how are we building our product towards solving the pain points that they've been talking about? >> Well, let me start by explaining where we started which is checkout. We call it checkout optimization chop internally but it's really it's shipping optimization. So, a lot of times merchants have spent a lot of energy to make sure they have beautiful pictures, clear product descriptions, like a nice flow on their website, their most popular products are up at the top or their new releases, right? They've done all this work on like the content, but they've set their shipping one time when they first set up their website and then they've never touched it again or they've never tested it. They maybe changed it once or twice, but the very first thing we said is like, wait, you got them to the checkout. People are losing a significant amount of their sales of somebody who said they wanted to buy. And so we started with checkout optimization. Somebody's already decided to buy. What if we make sure that we give them the right shipping options?

5:23 Excuse me, the right shipping options and displayed in the right direction, the right way immediately. Like some of the first things that we found is simplifying the descriptions, having three options, simplifying the descriptions, have having clear delivery expectation dates. A lot of times that's where we'll start. Hey, let's just get you on this. It's a best practice for for our merchants. 75 80% of the time that alone is going to increase their conversion rate at a material amount.

5:55 But that's just step one. Step two is let's look earlier and look at the type of customer you have in coming to checkout. Is this a person that is a loyal customer? Is this a firsttime customer? And you can treat them differently. And if they're a super super maybe you want to offer a firsttime customer a free shipping option, but if they've bought from you 10 times, they don't need free shipping. They already love you. Why are you giving them free shipping? So we can tailor that unique option just to them.

6:25 So that's kind of where we started and then it slowly just keeps getting evolving. So it's like, oh, okay, so now I'm offering these unique shipping options based off unique segments of customers and we can slice and dice your customer base in a thousand different ways to optimize this. But then it's also it's like sometimes merchants have picked, hey, everybody seems to do a $100 free shipping threshold. Well, we can go test your free shipping threshold and tell you if it should be 100, 90, 75, 120, 125, 130. And we can tell you what's going to maximize your margin dollars, right? As opposed to just saying, "Hey, it gets more sales in the door." Yes, free shipping gets more sales in the door. But did you know that you might be able to increase your shipping threshold and make more money as a whole? So, these are just small anecdotes of things that we can play with and we have consultants in house that will spend time with you and set you up the right checkout flow to maximize your shipping rates. I love it.

7:21 I think one of the unique things that you touched on that I want to dive a little bit deeper into is on the reporting side of what you guys have built within checkout optimization is not just like, hey, did this impact your conversion rate or what does that happen? like how does that impact revenue? But actually dialing down into like margin dollars, like how is this impacting that? If you offer a different shipping option, if you increase the price, if you decrease the price on shipping, how does that impact like how much net income you actually have? And so like there's so many tweaks that you can make that it's more than just like, hey, can I increase my conversion rate, but have a larger business impact? And so like talk talk through a little bit more on that piece.

8:00 >> Yeah. So, let there's there's easy ways to increase margin. Like you might be giving free shipping to a lot of customers, but if you charged five bucks, it would do a lot better, right? Like $5 has the same value as free. That works for some merchants, not all of our merchants. And this is what we go and we make sure we get the right thing for each merchant and each customer type. But another example that I would give is sometimes merchants do static delivery dates. Did you know that we've tested it and that by having a dynamic delivery date usually helps your conversion rate because people accept they don't need it to be 599, $7.99 and $1099. Some do. We will test it. But a lot of them the fact that it's dynamic. What what's happening in the customer's head is they're saying, "Oh, this is from FedEx or this is from USPS or this is from UPS." And they don't attribute it to you. They attribute it just to the shipper. And it's no longer a U thing that's being added on. It's a separate thing that's being added on by the carriers. And they have they accept it better by having a random number >> like $6.73 or whatever weird thing the the carriers do.

9:08 >> Now let me be very clear like >> that's a winner for the majority of merchants but not all. And that's one of the things that we do with our consultants is we are going to go start with testing best practices, but then we're going to tailor and tweak to your unique merchant and customer base and set you up the right we call it segmentation, but it's you could the better word is probably personalization. The best personalized checkout experience for your unique customer base.

9:32 >> Cool. I love it. You teased it a little bit earlier. You said that was the first thing that we've done is checkout optimization, right? Focusing on shipping. talk us through what else you you've built, I guess, or some of the features that are most exciting to you currently on what you're building. >> Probably the most exciting thing that we have launched recently in the past month is we've built an we call it intent AI. And what intent AI does is that it actually is going to watch a customer that's an anonymous customer. We know nothing about them. We don't know their name or anything. All we know is that they're on your site and they're clicking around. We've been able to build an algorithm that can go and determine what their intent is to purchase, whether it is super high intent or super low intent. And we can change the experience based off of their intent. So, let me give you an example.

10:17 If they're a super high intent customer, like we know based off their behavior with 90 plus% certainty that they're going to buy, don't give them free shipping. Don't offer them any discount codes. Like, you're getting full dollar for them. However, we also have built it where hey, if they're lukewarm, maybe they're like, we can tell that they're searching, but we're not sure. But all of a sudden, their intent drops, like, uhoh, they did something that means that their probability of buying is less.

10:45 Boom. We can hit them with discount codes. We can hit them with free shipping automatically. We have this running right now on 25 merchants, and we are winning 100% of these. It wins. It wins on all of them. 100%. Now, who knows over time, maybe there's a weird customer base, but because it's an it's an AI algorithm that's only sending you that discount code when somebody has dropped in their willingness to buy, it's like a no-brainer, right? But what's hard is we don't even we there's like the clear benefit of these middle middling, we call them warm and cool customers. Like these warm and cool customers, we can make them hot by giving them a discount code. We increase the close rate. But that doesn't even take into account the fact that you now know your hot customers and you can make sure you're maximizing the dollar. Like why can't we charge an extra dollar of shipping or $2 of shipping if they're a really really hot customer? Because we already know that they're going to buy.

11:41 So there's a a massive road map we have here of things that we want to build. But you could call us today and we could have up and running for a merchant today an intent pop up on people who that situation I was explaining and it will you only pay for it if it works right that's the best thing my favorite thing about conversion cloud is it's 100% accountability product we will test it all for you once we know that it works and we've set you up your personalized checkout you're up and running you know you're making more money and it's worth every dollar.

12:12 >> Yep. I love that. the the two follow-up questions that I have and one that you already touched on. The first one being how how is that data being trained, right? Like if you have the AI algorithm, is it based off of your site traffic? Like how how are we able to identify who is hot, who is lukewarm, who is cold? >> That's a good question because if you get up and running, we have to go train on your data. So I guess that maybe it wouldn't be that day. It kind of depends on the customer. might take us it takes like a little bit of time to be able to train the data. But what we do is we start tracking on your website and then we can track on your website the behaviors and then we can start mapping the the behaviors into we do it in four buckets. We s say cold meaning the probability of buying is super low like they're not then warm and cool. These are the ones that we action the most because they really showed an intent.

12:59 We're just trying to pivot them likely to buy. And then we have super hot like we know they're going to buy. And this is this we put them into these one of these four categories and then we action them accordingly. It usually take the how you do this like for like how the model works is it looks at historical behaviors on your website and then it it it apply those applies those behaviors to future future buyers and it works.

13:26 It's working every time right and then it's a continuous learning model. So as we learn information and gets retrained it'll adapt and change. So that's what I was going to highlight too is one of my favorite things about what across all of Redu the AI that we're building into everything is like the continual learning that happens, right? If we're offering discount codes to this certain cohort and it's not working, the AI is going to be able to like learn what is and isn't working and just perpetually get better over time. And so I think that's a a super valuable piece. My second question, which I think you've already answered, is how quickly can we spin this up? And it sounds like it can be a same day setup assuming >> everything goes smoothly.

14:05 >> It depends a little bit on data availability. But if you call us today, we'll turn it on and just start training the model. And we don't charge you to train the model. We only charge you once it starts taking action. Right. So >> cool. Very cool. I've had I had Aaron on a couple of weeks ago talking specifically about redu record, how products play nicely together. wanted to get your perspective on your product roadmap, how you're building within conversion cloud and how that is building in a way that plays nicely with the other products that Rita is building.

14:34 >> Yeah, it's good. So, one of the things that we're trying to do with RTO record is we're trying to map your customer base into personas that are specific to your type of customer, right? Over time, we want checkout to be the same thing. Like we might have a customer come in if we know they fall within a certain persona. We might change the might change the products that are shown. We might change the shipping options that are given. We might change the discounts that are offered based off of the unique personas that these customers fit.

15:04 Right? So that's where we're starting with a lot of that is like and we also want to do the opposite. It's like hey we have this customer that we know has reacted to a discount. Let's put them in on your email and let's make sure that you know that this person likes to get a good deal so that when you send them an email, you'll know that this is one that reacts to discount codes. But, hey, this other person, they just like to they like all your new season. They like the new products of the month or whatever, whatever. Every new season you launch product, they get excited. So, let's make sure that they get an email that's all about the new product. And then you can delineate how you're talking to your customers based off what they value.

15:42 >> Yep. I love it. I feel like the ability to pull any type of engagement data, put it into a redo record, atti tie it to somebody, then essentially every interaction that you have with them, whether it's they return a product and you need to prompt an exchange, but you know what products they're more likely to go and purchase based off of the behavior that they've had on different product pages or collection pages, then it influences what we can prompt as an exchange opportunity or something along those lines. It all feels very yeah just what we talked about at the beginning that end goal of making every single interaction very onetoone very personalized to where like >> Blakeley comes to a website and it feels like he has someone holding his hand the whole way like you typically like this product this is what you bought from us previously we were actually running a discount which I know kind of like gets you a little bit more excited like let's just get you this product with this discount into your cart and let's just go move forward >> 100% and what I would say if I was like talking to a friend who owned a was a merchant and had a had a brand as I would say I know that you're stressed about AI and how it's going to impact your world. So are we and we think that we have are identifying thousands of ways that we can offer unique benefits inre increasing your conversion rate increasing your open rate on your emails increasing your exchange rate and this is what AI is enabling and redo wants to be your AI advocate and like bring those those capabilities to you as the merchant. Cool. I love it. I love it. I just have one more question for you. I ask it to all the GMs at at the end of every interview.

17:14 Closing up 2025. We've got lofty goals on what we want to accomplish in 2026. As you look forward to like your specific area within conversion cloud here, what gets you most excited to go and build over the next year? >> I think we've we're getting really good at the shipping optimization. We're just getting started with intent. And let's just say that the road map is very large and we want to help you across all aspects of your website and uh we're really excited to see what comes in 2026.

17:46 >> Cool. I think with um AI, I feel like things just move faster and faster and so I'm sure that every day probably new things get added on to what you want to add on to uh to your road map with capabilities and and the speed to be able to to deliver new features. >> 100%. >> Okay. Awesome, Blakeley. Very much appreciate your time today. Anything else, I guess, focused on conversion cloud that we didn't touch on that you want to share. Are we uh good to wrap up here?

18:11 >> Uh just maybe reiterate like test it. Come come give it right. We'll set it up. It's a 100% accountability. You can hold it. We'll we'll do an AB test with you. We'll prove to you that it has its value. That's what we love about it. Okay. Love it. Thanks for your time. Appreciate it. We'll touch base later. >> Sweet. Okay.