Premium Loyalty Drives $187 Million to Retail eCommerce Brands [Case Study]

The parent company featured in this study is one of the largest of it’s kind with a portfolio of 13 dynamic retail eCommerce brands.

Challenge

This dynamic online retail company was looking to revamp their customer loyalty programs for 13 separate brands. They wanted to improve customer acquisition and retention by offering a valuable program that would incentivize customers to shop more frequently while increasing average order value.

With important KPIs front of mind, they knew a customized Premium Loyalty program for each retail brand would be the right answer. But, they needed to find a partner to build, manage, and optimize a customized solution for 13 brands.

 

Solution

The retailer decided to partner with Clarus to build and launch a Premium Loyalty program for 3 of their brands as an initial test.

It was essential that the program not only be an extension of their current brand experience, but also deliver unique benefits that would be valuable for each brand. The retailers’ marketing and executive management teams worked closely with the Clarus teams to design a program that would encourage and reward consumers for frequent usage and loyalty.

 

Results

Performance of first three programs exceeded their goal of outperforming their existing program within 4 months. After seeing the results, the retailer decided to launch custom Premium Loyalty programs for the remaining 10 brands.

Since launching Premium Loyalty programs for all brands, the retailer has seen average order value increase by 30% and the programs have driven over $187.4 million in purchases back to the retailer. Purchase frequency increased by 40% while total sales per customer increased 56%.

 “We brainstorm together; we talk regularly and meet often. It’s things like these that make a difference, because we don’t have this level or quality of relationship with other companies.” – Senior Program Manager

ARE YOU READY TO GO PREMIUM?

If you want to become a 24/7 presence in your best customers' lives, it's time to get started.