Before they launched multiple promotion strategies, Oracle Lighting wanted to understand the impact of a rewards program. To measure the true impact of loyalty rewards Oracle Lighting implemented an A/B Testing strategy. They chose a small set of customers for the test and divided them into two groups, Group 1 (test group) and Group 2 (control group). A/B Testing was carried out to measure the impact of a rewards program on these two groups.
Group 1 members (test group) were invited to join the loyalty rewards program. They were also they were awarded points for their past purchases making them eligible for rewards. This gave Group 1 members an opportunity to visit the Oracle Lighting site, redeem their reward points for coupons and get discounts on their next purchase.Group 2 members (control group) were not invited to the rewards program. They were also not given reward points for past purchases. Thus, Group 2 members were not eligible for any loyalty reward redemption's.
This test was run for a period of one month. At the end of the test period of one month, Zinrelo provided a thorough analysis of the purchase patterns for both the test groups.
It was observed that the repeat purchase percentage was 4.2% for Group 1 (test group) members. The repeat purchases percentage for Group 2 members (control group) was as low as 0.43%. This observation proved that for Oracle Lighting, the repeat purchase rate jumped by 10X for customers who were enrolled in a loyalty rewards program. Zinrelo also suggested additional strategies and loyalty campaigns that will increase the impact of a rewards program even further.
Loyalty programs help boost customer retention and lifetime spend. Oracle Lighting wanted to give their customers a reason to come back again and again. A/B testing proved that a loyalty rewards program was the best way to maximize customer retention.
Once Oracle Lighting figured out the massive gains from a rewards program, there was no turning back! Loyalty tiers were added to the VIP Rewards program. Additional points earning opportunities and exciting perks like discounts, exclusive gifts were added.
"A loyalty rewards program, is a very effective tool to get customers to come back and make more purchases. A/B testing helped measure the impact." commented Sandy Crespo-Mossi, Operations Manager at Oracle Lighting. "Instead of giving cash discounts, we plan to do many promotions using the rewards program. This will make the customer come back for more."
"Zinrelo's loyalty rewards platform is helping businesses to reach out and make deeper long-lasting connections with their customers. Loyalty ensures that customers do not go to competition, and this results in repeat business" said Samir Palnitkar, VP of Customer Success at Zinrelo. "We are empowering businesses to create personalized loyalty rewards programs with ease."
About Oracle Lighting:
Oracle Lighting has been producing automotive lighting components since 1999. They have received accolades from numerous organizations for their business practices including being listed on the Inc500 list of the Fastest Growing Businesses in the USA for the past 8 years consecutively, winning the 2012 Bronze Stevie Award for consumer products company of the year, and most recently being named The Small Business Administration's exporter of the year, Small Business Champion by the U.S. Senate small business and entrepreneurship committee.
Zinrelo is a modern-day, loyalty rewards program that maximizes repeat sales and per-customer revenue through 360-degree customer engagement. Zinrelo encourages multiple dimensions of loyalty including transactional, social, referral, engagement and behavioral loyalty. It supports omni-channel deployments that span across desktop, mobile as well as physical stores. Zinrelo's data driven approach is empowering brands to create powerful promotional strategies by fueling them with advanced data analytics.
To zing your loyalty and referral programs, contact Zinrelo at https://www.zinrelo.com/ or info(at)zinrelo(dot)com