The shift from brick-and-mortar to ecommerce is happening fast. In fact, 22% of total retail sales are projected to be completed online by 2023. This means that legacy brands need to build longer-lasting relationships with their customers online that are just as strong as physical connections.
So, how can legacy brands integrate a D2C strategy that enhances their online presence, all while delivering a seamless, omnichannel experience?
In this blog, we’ll show how REN Clean Skincare, a global leader in the cosmetics industry, built a loyal brand community and have increased their repeat purchase rates by 63%.
The health and beauty ecommerce market is growing by 27% annually, while brick-and-mortar is only growing by 1%. Established on the philosophy of “clean to skin, clean to planet”, REN Clean Skincare has been a global market leader for almost 20 years. They have already built a strong brand identity and following both online and offline. Yet, REN’s team felt that they could do more to align with their customers and build longer-term, more valuable relationships.
1️⃣ A fully-customized, integrated loyalty page
As advocates for a clean and sustainable world, REN Clean Skincare’s doctrine needed to be visible across every element of its brand. Working with Eastside Co – a team of globally recognized Shopify experts – they designed a user-friendly store on Shopify Plus, that was consistent with their ethos.
To enhance repeat purchase and brand engagement further, REN’s team decided it was time to kickstart a customer retention overhaul with a loyalty program. REN and Eastside Co worked together, using LoyaltyLion to create a fully-customized and on-brand loyalty program called “Clean Collective Rewards”.
It was important for REN’s team to provide a smooth and easy customer journey. That’s why the Integrated Loyalty Page that was created allowed members to access “Clean Collective Rewards” in the main navigation header across the whole customer journey. Then, when members land on the Integrated Loyalty Page, they can see their points balance, available rewards and the ways to earn more “Clean Credits”.
2️⃣ By increasing repeat purchase and enhancing brand engagement
68% of customers say that their loyalty is motivated by a brand sharing similar values to them. With this in mind, REN’s team designed a tiered loyalty program structure that encourages customers to engage more to move up the tiers.
The tiers enabled members to progress across three levels of loyalty: “Ally”, “Advocate” and “Activist”. The potential for progression motivated their environmentally-conscious customers to spend more to jump to the next tier as they were supporting a cause they believed in.
To encourage higher-order values, REN’s team also began offering an extra “Clean Credit” per pound spent at each tier. For example, loyalty program members who are in the “Advocate” tier can earn two “Clean Credits” per pound spent, while members who are in the “Activist” tier can earn three credits for each pound spent.
As a result, REN Clean Skincare’s loyalty program members began to spend 68% more than non-members. Member repeat purchase rates also grew, reaching values that were 63% higher than guest visitors.
3️⃣ Further engagement, further purchases
REN Clean Skincare recognized that customers who are passionate about causes are also more likely to share that cause with others. To build a more engaged online community, they created opportunities for loyalty program members to earn points for a social media following, by joining their mailing list or by leaving reviews. Now, if a member follows REN on any social media platform, they can earn five “Clean Credits”.
As members engage more with REN’s loyalty program, they can unlock more rewards and discounts. If a member writes a review about REN, they receive 50 Clean Credits which unlocks a £5 voucher.
Currently, loyalty program members who are engaging with the program are ordering 52% more than other non-engaging members. REN now also generates 38% of its total revenue from its loyal customers.
4️⃣ Turning members into loyal brand advocates
Regardless of the industry, customers are four times more likely to buy when referred by a friend or family member. To increase customer acquisition and program engagement more cost-effectively, REN’s team offered members 100 “Clean Credits” if they referred them to a friend.
The loyalty program allowed members to refer friends using email and social, making it easier for their existing customers to act as advocates. Meanwhile, referred friends also received a £10 discount, motivating them to become a program member.
Working together with LoyaltyLion, REN Clean Skincare’s ecommerce team and Eastside Co achieved remarkable results:
- 68% higher customer spend by loyalty program members compared to non-members
- 49% higher customer spend by loyalty program members compared to inactive members
- 63% higher average number of orders by loyalty program members compared to non-members
- 52% higher average number of orders by loyalty program members compared to inactive members
- 10% higher AOV by loyalty program members compared to the average shopper
- 72% higher repeat purchase rates by the loyalty program members
- 38% of revenue generated by loyalty program members
It’s not by chance that REN Clean Skincare achieved these attractive results. Having been in the cosmetics market for over two decades, REN’s team isn’t shy of innovation and evolving trends. Working together with Eastside Co, and LoyaltyLion, REN’s team built a strong brand community and identity online.
If you would like to find out more about REN Clean Skincare’s success, please read our full case study.
This article originally appeared in the LoyaltyLion blog and has been published here with permission.