3 min read

Loyalty rewards program case study review

Written by Andriy Boychuk
3 min read

In this video, I will be sharing the benefits of a loyalty program for your business and if it is worth implementing this program for your business. We will be looking at a real life case study of a loyalty program and normal sign ups.

We will look at the total and predicted CLV of members and non members, also past orders and predicted orders.

If you want to see all numbers and tables, read the article here. 

To find out if a new program works, the best way is by trial and error to make sure it matches your business and works, you could see lots of bad stories or good stories but it is best to try it out for your business genre or niche.

It is important to make the most out of each customer, how much they spend and if they keep returning, upselling is key for profit.

– Should you have loyalty slash rewards program in your business? Hi, this is Andrew, the founder of Flowium email marketing agency, as well as this YouTube channel. As a business owner, doesn’t matter what business you have. There’s always a lot of options, should I do this or that? Should they do it at or how much it will cost me? What kind of a return investment will get to me. And I would like to answer one of those questions, answer some of your doubts. If you asking yourself, should I implement loyalty program or loyalty rewards program for my e-commerce store? I will show you the exact data. I already showed how we did in case study. And I recorded video strongly, recommend for you to check out how we did email marketing around loyalty program and how much money we were able to generate. However, now it’s not about email marketing. Now it’s important to understand the value of loyalty program. So that’s why I took one of our client case study and did a hypothesis. So the hypothesis is somebody who are member of loyalty program and somebody who is not a member of loyalty program, who joined the list at the same time, who made at least one purchase. And I want to understand their value, while you on one list, those group of customers versus value of another group of customers. And to understand if there any difference between them and if loyalty program is beneficial or there’s no difference. So you should not waste any of your time. So let’s go to my computer and I will show you what I found. So I’m reeling in the numbers right away, but please do not stop watching this video because I would like to explain you in greater detail. So as you can see, there’s two group of customers, members, and non-members for loyalty program. And there’s like 4,000 members and 21,000 non-members. And remember they were joined the list at the same time. So actually I picked specific time and I said, anybody who joined after that date, who is member or who is not member. Okay, and also they have to be added to this group for this study, they have to place at least one order in that period of time. So the total customer lifetime value. So it meaning from that time until the day I did this study, what is the value of that customer? As you can see, loyalty program members are a little bit more than four times more valuable than just regular members. Since we use Klaviyo for all our email marketing efforts, we were able to allow the predicted CLV. What is predicted CLV is how much more that customer will spend with you during a lifetime of that customer. So just $129 versus $22. And as you can see it’s like five times, six times, six times more. But again, this is prediction we cannot know for sure it will happen, but what is fact is historic number of order And this just blew by mind, 27 versus 1.3. So loyalty member place almost 27 time more orders than a non-members. As a business owner it should blew your mind. Okay, so predicted number of orders, I don’t want to cover again this is just prediction and average days between the orders. This is good stats as well to understand how often they buy. And as you can see, members of loyalty program are more likely to buy from you, faster to buy from you than non-members. And churn risk, meaning they will stop buying from you is the churn risk prediction. Again, it’s just a prediction, but this is the percentage. They are more likely to stop buying from you. And as you can see, non-members have a 10% more likely to stop buying from you then members. So based on those numbers, this is data, this is actual data, this is not anything hypothetical. I did the hypothesis, I run the numbers, I check those numbers and I saw that real data. And based on that real data that we can start strategizing what we can do to even improve those numbers or what we can do to convert those 20,000 into maybe additional 1000 loyalty members. Again, I can not tell you what to do, but check those numbers and then figure out if you need a loyalty program or not. But I will strongly recommend to at least try, at least try for three months, six months, nine months, and see if it’s working for you or not working, but based on our experience it’s tremendous benefit for your brand as well as for your customers. If you have any additional questions, please leave them below under this video. I’m checking with them daily. Or if you have anything private that you want to ask us, contact us through our website, go to flowium.com and contact us and schedule a call with us. And we will be glad to answer any of your questions. Thank you.

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