How Ofra Cosmetics increased repeat purchase rates by 56% in one of the most competitive ecommerce industries

As the second-fastest growing industry in ecommerce with an annual compounded growth rate of 4.75% worldwide, you need to work hard to thrive in the beauty and cosmetics sector.

In this blog, we’ll show you how Ofra Cosmetics, a beauty brand, built an engaging brand community and stopped shoppers from turning to their competition.

First let’s introduce you to Ofra Cosmetics.

Having been in the market for more than two decades, Ofra Cosmetics is globally recognized in the beauty industry. With their innovative technology, Ofra Cosmetics has built a powerful brand community that includes influencers, celebrities, and even prime ministers!

Yet, Ofra Cosmetics’ team recognized a need to focus on building customer relationships in order to thrive in this competition.

Here’s how they achieved it:

More points, more glam: Introducing a loyalty program

First they needed to find a reason to encourage customers to stay loyal. Research shows that 74% of customers are motivated to become loyal if they’re working towards a goal or reward. With this in mind, Ofra Cosmetics’ team decided to create a tiered loyalty program that enables customers to unlock incremental benefits with each tier. To show the benefits of the program, they created an integrated loyalty page. By providing a loyalty destination, they allowed customers to engage more with the program and access their rewards.

Their initial step was to encourage customers to become a member. So they began to reward shoppers with 100 points for creating an account. Loyalty program members can then progress across three levels: “Beauty Status”, “Bae Status”, and “OG Status”. Within each tier, customers access various financial and experience-based rewards.

To encourage shoppers to repeat purchase, they provide points for every dollar spent. With the points that they’re earning, they can move up to the next tier. As they progress through the tiers, customers can access more exclusive rewards. For instance, members who spend more than $250 move up to “Bae Status” where they earn six points per dollar spent. They can then get early access to promotions, that members in the lower tiers do not.

As a result of this approach, redeeming loyalty program members now repeat purchase 56% more than non-redeeming members.

Getting glam with hyper-targeted email marketing

53% of shoppers who have purchased an online beauty and cosmetic product are willing to make a second purchase. To motivate shoppers to choose them over the competition, Ofra Cosmetics decided to check in with their customers and remind them of their brand values regularly. And how?

59% of shoppers’ say their purchasing decisions are influenced by email, so Ofra Cosmetics implemented a personalized loyalty email strategy. They first segmented their customers according to their loyalty status and buying behaviors. Then, using LoyaltyLion’s integration with Klaviyo, Ofra Cosmetics could send hyper-targeted emails and content.

For their at-risk customers, the brand sends out personalized points expiry emails to encourage members to return. And, for their loyal members, they deliver double points campaigns. 

To enhance engagement further, the program also offers 150 points to customers when they sign up for the newsletter. 

With this strategy, Ofra Cosmetics have achieved a newsletter mailing list of over 10k customers. On top of that, 21% of their orders now come from their existing customers who spend, on average, 59% more than non-members.

The beauty of sharing: Implementing a referral strategy

Ofra Cosmetics’ team saw that people are four times more likely to buy when referred by a friend. To get their engaged community talking about their brand, the team implemented a referral strategy that functions as a two-sided incentive.

“The best part of the program is the advocacy it has created. Referrals are by far the most impressive metric, and we often incentivize this reward to boost our reach.”

Paula, Brand Writer at Ofra Cosmetics

To encourage their loyal customers to refer a friend, OFRA Cosmetics offers 1,000 points for a referral. Members can then refer a friend via WhatsApp, email or through social media (including Twitter or Facebook) with a single click. Customers can also copy their unique referral link and share it on any platform they choose. The Ofra Cosmetics’ team then offers $10 off their first purchase to the referred friend.

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With their referral strategy, today OFRA Cosmetics has gained more than 201k additional visits to their site and has generated approximately +$183k in extra revenue.

Congratulations to OFRA Cosmetics!

OFRA Cosmetics’ loyalty program has gone from strength to strength. Today, 29% of the brand’s total revenue is generated from loyalty program members.

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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