REN Clean Skincare boosts repeat purchase rates by 63% with LoyaltyLion

Challenge

After more than two decades in the cosmetics market, REN Clean Skincare has built a big following. However, they felt they could be doing more to encourage their repeat customers to come back and purchase more frequently.

Ultimately, they wanted to improve their customer lifetime value (CLV) by driving more loyal behaviors. Working with LoyaltyLion they have achieved:

• 68% increase in customer spend by loyalty program members
• Repeat purchase rates 63% higher for program members
• Redeeming members purchase 2.4x more frequently over 12 months than non-members
• 38% of total revenue from loyal customers

Introducing REN Clean Rewards

REN decided it was time to ramp up customer retention with a loyalty program. They worked with agency, Eastside Co, to create a fully-customized, tiered loyalty program; “REN Clean Rewards”.

A big priority for REN was increasing purchase frequency so they focussed on creating an exclusive community that customers aspire to move through. They created three tiers (Clean Starter, Clean Boss, Clean Champion). These tiers were designed to motivate their environmentally-conscious community to spend more frequently in order to jump up to the next threshold – while also supporting a cause they believe in. The higher tier members benefit from free shipping, VIP access to sales, and even exclusive invites to events and it’s these VIP perks that keep members motivated to move through the ranks.

But the environmental aspect plays a big role too – once their customers have earned enough points, they can redeem them through charitable rewards such as planting trees or recovering ocean plastic; causes their customers care about.

To boost enrollment into their program, REN uses LoyaltyLion to display on-site notifications to guest shoppers. Notifications encourage one-off shoppers to create loyalty program accounts in exchange for enough points to unlock a reward they can use on their next purchase. They also use welcome gifts to encourage new members to engage and move up tiers.

To reduce the time between purchases, REN created opportunities for loyalty program members to earn points without having to spend, for example rewarding actions such as social media follows or mailing list signups. This allows them to stay front of mind and communicate more between transactions while boosting a member’s points balance so they return to purchase again sooner.

Results

Greater CLV was the goal for REN Clean Skincare, and with a combination of their fully-customized loyalty page and their loyalty tiers,  they have achieved:

• A 68% increase in customer spend by loyalty program members
• Repeat purchase rates that are 63% higher for program members
• Redeeming members now purchase 2.4x more frequently over 12 months than non-members
• Redeeming members are 4.9x more likely to make a second purchase than non-members
• Loyalty program members have, on average, a 104% higher AOV and spend 271% more than non-members

As a result of this success, REN now generates 38% of their total revenue from their loyal customers.