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The Real Benefits Of Implementing A Loyalty Program


At dotdigital, every customer is unique, and every customer success story is remarkable to us, as we become an integral part of the beautiful journey. In ecommerce, we often stress how critical it is for brands to reward customer loyalty. It's a domino effect – rewarding customer loyalty drives customer engagement, leading to higher conversion rates and customer retention.

One such success story is our client Cellar One, an exclusive invitation-only online store for Australia’s second-largest wine company, Accolade Wines. The brand redefined its customer engagement by integrating dotdigital’s recency, frequency, and monetary (RFM) value model tool. The aim was to identify and target top-tier buyers who were not part of the C1VIP club and invite them to join by implementing an advanced segmentation process. Here is their story.

Automated loyalty campaigns

Thriving on customer retention and rewarding customer loyalty, the brand created the C1VIP club to reward the most loyal and valuable customers with special offers and giving them access to highly exclusive wines. In June 2021, Cellar One launched the C1VIP invitation program inviting loyal customers to join the club. The invitation was a way to let them know that they have achieved elite status with the brand and make them feel special.

Cellar One dotdigital client email flash sale

The program was a huge success, achieving a 72% click-to-open rate and saw an increase of 30% to the high-value customers within the C1VIP club. It further witnessed a 58% increase in average customer spending, with a large segment of the targeted customers purchasing wines featured only in the VIP area and on sale.

Advanced segmentation and personalization

The RFM deployment helped Cellar One analyze the data and segment customers into different personas, using spending behavior as a crucial parameter. With dotdigital’s RFM tool, Cellar One could segment their customers and identify the frequent spenders who are likely to spend again, inviting them to join the exclusive VIP club.

Cellar One email marketing with product recommendations

The C1VIP invitation program has been a huge success, yielding great results. The brand used dotdigital marketing automation capabilities to target existing and new C1VIP customers through tailored emails that reflected their specific interests with an exclusive 20% discount. The exceptional results achieved from this campaign were the first of their kind and a clear example of the effectiveness of the loyalty programs.

Stellar customer engagement

The campaign drove excellent customer engagement, recording an 80% conversion rate. While several customers added an extra item to the cart, others that didn’t shop from the VIP sale browsed through to the main website and picked something else. The brand is looking forward to using the re-targeting functionality for optimized campaigns in the coming months.

Cellar One loyalty program in action

Need more inspiration to take your marketing journey to the next level? Check out some of our other awesome client success stories here.

Special thanks to our friends at dotdigital for their insights on this topic.
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