How LIVELY increased its customer lifetime value by 39% with their loyalty program
Advice
6th February 2020
Having a loyal customer base can bring you endless benefits, including higher engagement, higher repeat purchase rate, higher spend, higher levels of WoM, higher customer lifetime value, and, ultimately, higher revenue. This is all evidence that a loyalty program is an inseparable part of your business.
So how do fast-growth stores use a loyalty program to drive higher customer lifetime value?
In this blog, we’ll show you how LIVELY’s team designed a loyalty program that increased its customer lifetime value by 39% and customer spend by 36%.
Excited? Let’s begin with some background on the brand. ?
LIVELY is a leisurée brand and community that is motivated by what empowers women today: being smart, healthy, active and confident. LIVELY then delivers lingerie, activewear, swimwear, and loungewear to reflect these motivations.
Since launching in 2016, LIVELY has expanded its community to nearly 100k “Brand Ambassadors”, and have opened new retail stores in the US. LIVELY’s success has even made headlines, with CNBC writing, “This fledgling lingerie company is growing by 300%, crushing the mighty Victoria’s Secret”. Today, LIVELY is growing even more and making bolder strides towards the brand’s mission of inclusivity and community.
Having a powerful brand identity, LIVELY’s focus was on securing long-term loyalty that would drive repeat purchase rates and customer spend. So, they wanted to create a loyalty program that would reflect their unique brand values and strengthen their community. Here’s how:
1️⃣ Enhancing brand love
The first goal for LIVELY was to create deeper connections with their customers to encourage them to return regularly and spend more. To achieve this, LIVELY implemented a tiered loyalty program that complemented their unique brand values.
Michelle Cordeiro Grant, Founder and CEO at LIVELY, said, “Our loyalty program is an extension of this appreciation for our community and a way for us to show our current customers how much we value them.”
LIVELY’s tiered loyalty program structure is made of three levels respectively: “Bestie Status”, “Total Boss Status”, and “Powerhouse Status”.
To increase AOV, LIVELY awarded customers with extra points as they move up the tiered structure. Customers in Bestie status can earn one point for every dollar spent, and customers in Total Boss status can earn two points for every dollar spent.
Michelle also says that “because it’s so easy to use, we are frequently able to run fun campaigns like ‘double points’ on certain purchases, as well as take a tiered approach to the structure of our program (Bestie Status, Total Boss Status, and Powerhouse Status). Because of this, customers can unlock various perks based on their level of engagement with our brand”.
By creating tiers that their customers could aspire to, LIVELY increased the average order value of loyalty program members by 21% and customer lifetime value by 39%.
2️⃣ Increasing customer acquisition via “the Ultimate Hookup”
It is known that referred customers are four times more likely to make a purchase. Yet, our recent consumer research also showed that referred customers spend 200% more than customers acquired through other means. The LIVELY team was aware that their loyalty program could also be used to complement their acquisition strategies. So, they decided to incorporate referrals into their program.
Here’s how their referral strategy works:
?Members can easily refer LIVELY to their “BFFs” via a unique link
?When their BFF makes a purchase, the referring member can earn 100 points
?The new BFF members get a $10 discount on their first purchase
By encouraging customers to act as advocates and give their “BFFs” a good reason to become a member LIVELY powered its growth cost-effectively.
3️⃣ Increasing engagement
Data-driven marketing delivers six times more ROI since it creates deeper personalization and unlocks true insights. To have an outstanding data-led loyalty program, LIVELY’s technology team harnessed LoyaltyLion’s integrations with Klaviyo and Zendesk.
Using LoyaltyLion and Zendesk together, LIVELY empowered its support team to improve customer experiences and win at-risk customers back by crediting points if they have a negative experience.
Also, LoyaltyLion’s integration with Klaviyo allowed LIVELY to incorporate loyalty data into their emails that powered them to create fully customized messages. These included information on the customer’s available rewards, points balances and referral links.
When we caught up with Michelle, Founder and CEO at Lively, she highlighted the importance of a seamless checkout to increase engagement. “LoyaltyLion’s Points Slider has enabled us to make our program very user-friendly. From a customer POV, joining the program is a seamless process, and so is gaining and redeeming points in checkout.”
Michelle added, “We recently revamped our loyalty program, The LIVELY Rewards, and have seen the percentage of online purchases using a LoyaltyLion code double. Also, our active loyalty program members are now two times more likely to purchase compared to non-members.”
As a result of using their loyalty program to support their business, LIVELY increased its average number of orders by 37% and boosted average customer spend by 36% in just one year.
The results at-a-glance
Michelle says, “The core of the LIVELY has always been to understand who our customers are and to make sure our interactions with them are personalized. Maintaining a customized and consistent brand experience was extremely important for our loyalty program, and LoyaltyLion has provided an extremely easy backend that made this possible.”
Working together with LoyaltyLion, LIVELY’s team achieved:
LIVELY is an experience and mindset that reminds, inspires, and enables its customers to live life confidently, purposefully and passionately, doing what they love, with the people they love. We are very happy to work with an influential brand like LIVELY and to see how they power their ongoing growth.
If you would like to find out more about LIVELY’s success, please read our full case study.
Managing your program
