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Huggg: 4x conversion through customer diagnosis

A three-phase investigation into how businesses discover, evaluate and purchase employee gifting solutions which led to a massive increase in conversion for our client.

"Throughout the project, Andrew was continually optimising and evolving our questions and exercises to unearth maximum insight. He was very easy to work with and felt like a genuine member of the team."

Sam Whitehead: VP Product & Growth at Huggg

The Challenge

Moving from sales-led to self-serve growth

Huggg's gifting platform helps businesses create meaningful connections with their employees through an online gift solution that adapts to individuals' personal tastes and delivery preferences. While their product resonated strongly with businesses who were introduced through their sales team, they found that potential customers weren't converting fast enough through their website. The sales-led approach was working but difficult to scale.

The team needed to understand why self-serve adoption was lagging behind and how to address it. They suspected the answer lay not in product features, but in understanding why their best customers actually chose Huggg. This meant deeply exploring how businesses discover and evaluate gifting solutions, what barriers exist in their current website experience, and whether their pricing and positioning aligned with market expectations.

Our Approach

Three targeted studies to understand different aspects of buying

We diagnosed the problem through three targeted phases, each designed to illuminate different aspects of how businesses buy gifting solutions:

First, we interviewed existing customers to understand their buying journey - what triggered their search for a gifting solution, how they evaluated options, and what ultimately convinced them to choose Huggg. This gave us a foundation of what was working well in their current approach.

Then we studied first impressions with businesses who had never used Huggg before. We observed as they explored the website and tried to understand the product. A crucial insight emerged: many potential customers fundamentally misunderstood how Huggg worked, creating a significant barrier to self-serve adoption.

Finally, we conducted pricing perception research to understand how different types of businesses thought about the value and cost of gifting solutions. This helped us segment potential customers based on their pricing preferences and expectations.

The Outcome

Quadrupled purchases and bigger bags

"We had an immediate uplift in conversion rate and decrease in sales cycle as a result of the work.  The new language really aligned with our customers’ job to be done"

Paul Wickers: CEO at Huggg

The diagnosis revealed that the barrier to self-serve growth wasn't the product itself, but how it was being presented. We helped Huggg decide to:

- Update their website copy and flow to clearly communicate the platform's value

- Remove distracting or confusing interface components and copy

- Develop pricing that was more aligned with different customer segments

The impact of these changes was huge, including:

4.1 x increase in percentage of first time users that purchased
2.1
x number of purchases per session 
Along with more revenue per user and per session.

This is a significant increase in self-serve customer conversions, allowing Huggg to reduce reliance on sales-driven growth and scale more effectively.

Could your business benefit from a Customer Value Diagnosis?

If you're experiencing good product-market fit but growth has plateaued, you might be facing the same challenge Huggg did - misalignment between what you think customers want and why they actually buy. Our Customer Value Diagnosis uncovers these hidden growth levers in 4-6 weeks through strategic interviews with your highest-value customers.

We've helped B2C businesses achieve 2-10x conversion improvements by revealing the real reasons customers choose them. Get in touch below to discuss whether a diagnosis could unlock your next phase of growth.

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