How Hashtag Loyalty helped a partner brand to convert passive customers into actively paying ones!

Introduction

Innovative engagement methods have been key to attract customers. Mass communication to your entire target audience does not work anymore. Businesses need to focus on psychological factors that influence consumer behavior. Hashtag Loyalty recently helped a partner business, a large retailer that caters to a daily footfall of over 4000 customers across 30 locations in 15 cities and looked to revive lost customers.

Objective

Retain lost customers and convert non-paying customers who had visited any location of the brand in the past 90 days into actively transacting ones.

Feature Utilized

Hashtag Loyalty suggested employing the Manual Campaign feature and specifically the newly introduced Bonus Point Campaign type to achieve the aforementioned objective; keeping the consumer psyche in mind. Bonus points create a higher level of motivation that positively influences the buying behaviors of customers.

What are Manual Campaigns?
Hashtag Loyalty’s Manual Campaign feature enables you to send personalized cross-channel (SMS+Email) communications to targeted customers based on their purchase patterns and user attributes.

What is a Bonus Point Campaign?
In layman terms, Bonus Point is a type of reward campaign where customers are given extra points to redeem in their upcoming purchase within a fixed validity. In another variant of Bonus Point Campaigns, customers earn points on their purchase at a rate higher than the usual.

How did the brand leverage Bonus Point Campaigns to retain customers?
Apart from auto campaigns (different from manual) to customers at each stage of their lifecycle, the brand had been regular at sending reward campaigns to their customers. There was a conscious effort from the brand to experiment with the target audience as segmented by Hashtag Loyalty based on the Recency + Frequency + Monetary characteristics of customers and offer types such as discounts, freebies or add-ons.
The brand as part of their next campaign looked to retain lost customers, generate visits from leads they had collected from their Wi-Fi network and incite activity from passive non-paying customers who had visited the brand in the past 90 days but had failed to register any transaction.
Hashtag Loyalty’s newly introduced Bonus Point Campaign was employed; each of the ~90,000 customers who fell in the above category received 500 points which could be redeemed as a discount of Rs. 500 on their upcoming purchase.

Impact

Passive customers converted into actively paying customers
Visits from ~300 passive non-paying customers were generated who had an average spend of Rs. 1436.

Lost customers were retained
The campaign was successful in retaining lost customers, 200 redemptions were recorded from customers who had not visited in over 90 days.

Additional revenue generated owing to redemptions
The campaign resulted in a total of 498 redemptions and a total of ~Rs.4.5 lakhs additional revenue for the brand.

Improved adoption of the Loyalty Program
The campaign improved the adoption of the program by means of inciting numerous first-time redemptions from customers who’d just been observing participants of the program.

Conclusion

The Bonus Point Campaign was a successful one that had promising results, ensuring it was first of many to come. Not only do these campaigns drive immediate revenue but they also set up your customers for subsequent redemptions. With a unique offering such as Bonus Points, you can substantially elevate your customers’ desirability to engage with your brand and successfully helps in generating additional visits.

Wondering how you can run a Bonus Point Campaign?
Simply login to your Hashtag Loyalty Merchant Dashboard and select Campaigns just like you usually do, you will find that we’ve added the Bonus Feature in Reward Types.

Still, need help? Contact success@hashtagloyalty.com

Not using Hashtag Loyalty? Click here to get started today!