Loyalty cards in e-mails: Westland case study results in 76.6% revenue growth
Personalization in email marketing plays a key role in building customer loyalty to the brand. The client has a positive experience and trusts the retailer more strongly when his e-mailings are not based on abstract information, but on his personal interests and preferences.
It’s not a secret that the loyalty program is one of the most effective strategies for retaining clients and collecting information about them. However, not all retailers make the use of discount cards conveniently for their clients – it happens that buyers do not know about the amount of discount on their card and do not feel the benefit from using it.
The online store Westland decided to make use of its loyalty cards as efficient as possible for regular customers by including in the email information about the card: the amount of the client’s personal discount and the amount for which it is necessary to buy products to increase the percentage of savings.
Today you will read about how by adding information about the loyalty cards in their emails allowed Westland online store to increase the RPE- Revenue per Email sent by 76.7%.
The history of the brand of denim and casual wear Westland began in America back in the 1930s, and in the 1990s the brand’s products entered the Russian market, which allowed the company to build a wide retail network in the 2000s, and to launch their Russian eCommerce in 2010.
Increasing the profit out of sent emails (RPE) by adding information about the loyalty card to the newsletter
Retail Rocket designers developed an email template with a personalised welcome text. This template included a personalized recommendations block with sales, which were taking into account the user’s interest and information about their loyalty card.
This information is based on the discount that the client currently has. And the amount he needs to reach for a higher discount.
Information about loyalty card:
If the customer receives a 5% discount now, by spending up to 105€ he will increase the discount to 7%.
Hypothesis:
By adding information about the current discount level and the total amount the customer needs to purchase in order to obtain a higher discount, will attract the attention of buyers due to the possibility of obtaining benefits. And this will also encourage them to make additional purchases.
To test the hypothesis, Retail Rocket experts conducted an A/B Test. All visitors were randomly divided into 2 segments in real time:
1. The first segment did receive a standard email;
2. The second received an email including the information about the loyalty card.
| Standard version of the email | Version of the email with the information about the loyalty card |
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Results
Following the results of A/B testing the following results were obtained:
| CTOR (%) | CTR (%) | Conversion (%) | Revenues (%) | Average order (%) | RPE (%) | |
| Without loyalty cards | – | – | – | – | ||
| With loyalty cards | +14.13 | -5.31% | +42.82 | +76.60 | +28.71 | +76.70 |
Adding information about the loyalty card to the email allowed to increase the following indicators:
- Click Rate: +14.13%
- Conversion: +42.82%
- Average Order Value: 27.71%
- Revenue: +76.6%
- RPE growth: +76.7%.
According to the test results, adding the information of the loyalty card in the email generated conversion rate of 42.82%, the average order value of 27.71%, and Revenue per Email (RPE) of 76.6%.
Westland Comment
We are a large omnichannel retailer and strive to build an effective system of personalized communication of the online store Westland with customers. We want our loyalty program to be as convenient for our customers as possible, so together with Retail Rocket we decided to use information about customer discounts in emails. This move significantly increased the effectiveness of the emails and allowed us to increase the revenue of the e-mailing by more than 70%.
Kotenko Pavel, Head of Westland online store