Velour increased its repeat purchase rate by 56% thanks to their on-brand loyalty program
Up from $483B in 2020 to $511B in 2021 — and with an annual compounded growth rate of 4.75% worldwide — the global beauty industry is predicted to exceed $716B by 2025. Seen this opportunity, Velour wanted to create an on-brand loyalty program to differentiate from their competitors and increase their repeat purchase rates.
To achieve this, they created an on-brand, tiered loyalty program structure. This allowed them to encourage their customers to repeat purchase and engage more with the brand. For instance, they enabled customers to earn points via making a purchase, following on social, writing a review, referring a friend and buying from the selected collections. To encourage customers to keep returning to the site, they also provide monetary and free product rewards.
Thanks to their loyalty strategy, they increased their customer spend by 58% and repeat purchase rates by 56%.