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How a Multi-Million Euro Company Lost 50% of Its Revenue in One Night
In 2017, Loes Daniels, founder of the fast-growing gift card company Experiencegift, made a decision that caused the company to lose half of its revenue in a single night. The mistake? Rolling out a complete website redesign without proper testing, right before the critical Christmas sales period. This story serves as a cautionary tale for entrepreneurs about the dangers of untested changes, especially when a business is already performing well.
Background: From a Personal Frustration to a Global Business
Experiencegift was founded in 2014 by Loes Daniels after she struggled to find a suitable hotel gift card for her sister's birthday trip to London. Most Dutch gift card providers at the time had restrictions, such as only offering hotels in specific regions or near highways. Daniels saw an opportunity and launched Experiencegift, initially focusing on hotel stays. The company quickly expanded to offer gift cards for flights, train journeys, and activities, growing into a global operation active in 194 countries with offices in Amsterdam, Athens, London, Dubai, and soon New York.
By 2022, the company had recorded a revenue of over 25 million euros, with the majority of customers coming from the UK and the US. Only about 5% of revenue was generated in the Netherlands. Daniels attributes this to Dutch consumers being more frugal: 'Nederlanders zijn toch wat gierig, een cadeau van honderd euro geef je niet zomaar.' (Dutch people are a bit stingy, you don't just give a gift of a hundred euros.)
The company's growth was remarkable. Between 2015 and 2018, Experiencegift grew by 7,628%, earning it a spot on the Deloitte Fast 50 list as the fastest-growing tech company in the Netherlands. The company is profitable and has attracted investors, with a goal of reaching 100 million euros in revenue. Similar to the fastest-growing tech companies in Europe, Experiencegift scaled rapidly by targeting international markets.
The Costly Mistake: A Website Redesign Without Testing
The Decision to Revamp the Site
In 2017, Daniels and her business partner Jorik Schröder decided that the company needed a completely new website. Convinced that the new design would be a major improvement, they launched the entire site overnight without any A/B testing or gradual rollout. The result was immediate and devastating: revenue dropped by 50%.
Initially, the team thought there was a technical error. However, after extensive testing, they found that the site was functioning perfectly. The problem was that customers were unhappy with the new look and could no longer find their way around the site. The redesign had confused users, leading to a sharp drop in conversions.
'We waren er zo erg van overtuigd dat het ging lukken, dat we niet eens hebben bedacht om het te testen.' (We were so convinced it would work that we didn't even think to test it), Daniels said in an interview on BNR's Bloed, Zweet & Zaken podcast.
Recovery: A Gradual Return to the Old Design
Rather than rolling back the entire redesign, Daniels chose to gradually reintroduce old elements to the site. Over time, conversions began to recover, but it took a considerable period for the company to return to its previous revenue levels. The experience taught Daniels a valuable lesson about the importance of testing and incremental change.
'Je moet niet zomaar iets 180 graden veranderen als het eigenlijk gewoon werkt.' (You shouldn't just change something 180 degrees if it actually works), she reflected. This lesson is particularly relevant for entrepreneurs in the e-commerce conversion rate optimization space, where even small changes can have outsized impacts.
Impact and Implications for Entrepreneurs
Daniels' story highlights several key lessons for business owners. First, never make drastic changes without testing, especially during peak sales periods. The Christmas season was crucial for Experiencegift, and the redesign could not have come at a worse time. Second, even if you are confident in a new direction, user feedback is essential. What seems like an improvement internally may not resonate with customers. Third, recovery from a major mistake is possible but takes time and patience.
Despite the setback, Experiencegift continued to grow. The company now serves over 3.3 million users and has more than 30,000 verified Trustpilot reviews. Daniels and Schröder, who were previously in a romantic relationship that ended, maintain a successful business partnership. 'Een zakelijk huwelijk werkt beter' (A business marriage works better), Daniels noted, adding that Schröder's current partner also works at the company.
The experience also underscores the importance of digital transformation best practices for SMEs, where proper change management can mean the difference between growth and disaster.
FAQ
What is Experiencegift?
Experiencegift is a Dutch company that offers gift cards for experiences such as hotel stays, flights, train journeys, and activities. Founded in 2014 by Loes Daniels, the company operates in 194 countries and has offices in Amsterdam, Athens, London, Dubai, and New York.
How much revenue did Experiencegift lose from the website redesign?
The company lost 50% of its revenue overnight after launching a completely redesigned website without testing in 2017. It took a significant amount of time to recover to previous revenue levels.
What was the main cause of the revenue drop?
Customers were unhappy with the new website design and could not navigate it effectively, leading to a sharp drop in conversions. The site functioned technically well, but the user experience was poor.
What lesson did Loes Daniels learn from this experience?
Daniels learned that drastic changes should never be made without thorough testing, especially when the existing system is working well. She advises entrepreneurs to avoid 180-degree changes and to test incrementally.
How big is Experiencegift today?
As of 2022, Experiencegift reported revenue of over 25 million euros, with the majority coming from the UK and US. The company has grown rapidly and aims for 100 million euros in revenue. It is profitable and has received multiple awards, including the Deloitte Fast 50 award.
Sources
BNR Nieuwsradio - Miljoenenbedrijf verliest in één nacht helft van omzet
Quote Net - Loes Daniels en Jorik Schröder mikken op 100 miljoen omzet
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