How June & January increased its repeat purchase rate by 47% using loyalty rewards

The online baby and young children’s apparel industry has had a steady growth of 10.4% in the last five years. More and more consumers are comfortable shopping online and are turning to ecommerce for their baby-related purchases. . In 2020, the vertical saw a 58% increase in sales compared to the same period a year ago

If you’re a baby brand, now’s the time to build longer-lasting relationships with customers and secure repeat purchases into the future. Want to know how to do it? Take inspiration from this blog where we’ll be diving into how June & January achieved a 47% increase in their repeat purchase rate.

First, here’s the background story. 

🏆 Selected as one of the fastest-growing companies in the US by Inc, June & January have built a community of moms, dads, babysitters, grandmothers – and, even kiddos. To reward this close-knit customer community, while simultaneously encouraging greater repeat purchases, they built a tiered loyalty program structure.

The team saw that the main reasons people participate in loyalty programs include: discounts/offers (43%), free products (27%), access to exclusive rewards (10%), and members-only benefits (9%). But, with their existing loyalty provider, they were unable to provide exclusive benefits.

They also wanted to provide a loyalty destination where members could engage with the program wherever they are in the customer journey. 

To achieve their desires, here’s what June & January did after migrating to LoyaltyLion:

👉 Create a unique URL for their loyalty program to provide a full loyalty experience

June & January’s team knew that to be successful, their loyalty program, “J&J Perks”, needed to exist as a natural extension of their brand rather than as an add-on. So using LoyaltyLion’s Integrated Loyalty Page, they created a dedicated page for J&J Perks within their store’s code and included it in their main navigation header.

To encourage sign-ups, June & January used the loyalty page to explain how their program works and the benefits of becoming a member.

Once signed up, customers can see their current points balance, available rewards, and how many more points they need to move up to the next tier – all without leaving their personalized loyalty page.

By making the program a natural step in the customer journey, J&J Perks gets 1,000 new members every day.

👉 Increase repeat purchase rates by applying custom rewards for each tier

To secure their long-term growth, June & January needed to increase their repeat purchase rates. They already had a tiered loyalty program structure where allowed members can move across three levels: “Buddy”, “Bestie”, and “Fam”. But with 79% of shoppers are motivated to become loyal if they can unlock exclusive benefits they knew they needed to add exclusivity to their loyalty program.

Research shows that 79% of customers are motivated to join a loyalty program with financial incentives and 66% are motivated by experience-based rewards. With this in mind, June & January added financial and experiential rewards as benefits served through its program. These rewards would encourage members to return and make repeat purchases. 

To achieve this, the brand used custom rewards inLoyaltyLion’s API alongside Shopify Scripts. An example of a custom reward the brand set up was giving customers triple points per dollar spent on items bought from the Halloween collection.

To encourage their program members to repeat purchase more, June & January have also offer discounts on selected collections. 

As customers rack up the points, they can redeem bigger discounts (and, can even earn a $200 Gift Card). To reward their most loyal customers in the “Fam” tier they provide experience-based rewards such as exclusive access to sales and new collections.

👉 The results

The repeat purchase rates of June & January’s redeeming program members is now 42% higher than that of their non-redeeming members.  

Today, June & January’s loyalty program members spend 52% more than guest visitors, and loyalty program purchases make up 36% of their total revenue.

Want to find out more about June & January’s success? Read the full case study.

About the author

Ipek

Ipek is a Product Marketing Consultant at LoyaltyLion. Before doing her Marketing masters at the Queen Mary University of London, she worked in top global advertising and marketing agencies providing creative strategies for both B2B and B2C clients. At LoyaltyLion, Ipek makes sure our readers get the best content about LoyaltyLion's features and how it can help to power your ecommerce businesses.

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