Ofra Cosmetics increased its repeat purchase rates by 56%

Challenge

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. OFRA Cosmetics’ team recognized a need to focus on building customer relationships in order to stop shoppers from turning to their competition.

Solution

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.

59% of shoppers’ say their purchasing decisions are influenced by email, so OFRA Cosmetics also 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.

To get their engaged community talking about their brand, the team then implemented a referral strategy that functions as a two-sided incentive.

Results

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