Shopcalico, a trendy apparel and lifestyle brand, operates both physical and online stores, offering a wide range of curated products to fashion-conscious customers. The brand is known for its playful yet stylish clothing and accessories that appeal to a diverse, primarily millennial and Gen Z customer base.
Shopcalico sought to grow key business metrics such as Annual Recurring Revenue (ARR), Customer Lifetime Value (LTV), Average Order Value (AOV), and repeat purchases. Additionally, they wanted to strengthen customer loyalty by rewarding their best customers and making shopping more engaging and fun. Their existing model was performing well but needed a more integrated approach to increase customer retention and improve overall brand engagement.
The main objective was to develop a strategy that:
Shopcalico implemented a comprehensive strategy combining gift cards and a revamped loyalty program. The solution was designed to drive customer engagement, increase average order values, and enhance brand loyalty across both physical and online stores.
Shopcalico introduced gift cards available both in-store and online. Customers could purchase these as gifts for friends and family, encouraging new customer acquisition and allowing seamless cross-platform usage.
For every $100 spent on a gift card, customers received an additional $10 bonus, incentivizing higher-value purchases. This helped drive up AOV while also attracting new customers when gift cards were given as presents.
Shopcalico ran limited-time offers during key shopping seasons (e.g., Black Friday, holiday season), where customers who bought gift cards were entered into raffles for exclusive items or experiences, creating a fun element while boosting gift card sales.
Shopcalico revamped its loyalty program to feature multiple tiers (Bronze, Silver, and Gold), where customers could earn points based on their purchases. Points could be redeemed for discounts, exclusive products, or additional perks like free shipping.
Customers earned points for various interactions, such as referring friends, sharing purchases on social media, and leaving reviews. This broadened customer engagement beyond transactions, driving more repeat visits and interactions with the brand.
To make the program more personal and engaging, Shopcalico offered double points or small gifts during customers’ birthdays or shopping anniversaries, adding a special touch to the loyalty experience.
Gold members received early access to new collections and sales, as well as invitations to exclusive events (both virtual and in-store). This gave top customers a sense of exclusivity and encouraged higher engagement and spending.
The gift card and loyalty program was fully integrated across Shopcalico’s eCommerce platform and physical stores. Customers could earn and redeem loyalty points and gift cards on either platform, providing a seamless experience.
Shopcalico used targeted email marketing and app notifications to remind customers of their loyalty points, upcoming promotions, or expiring gift cards, which helped maintain engagement and encouraged repeat purchases.
The gift card and loyalty program was fully integrated across Shopcalico’s eCommerce platform and physical stores. Customers could earn and redeem loyalty points and gift cards on either platform, providing a seamless experience.
Shopcalico used targeted email marketing and app notifications to remind customers of their loyalty points, upcoming promotions, or expiring gift cards, which helped maintain engagement and encouraged repeat purchases.
Shopcalico introduced fun gamified elements such as “Spin to Win” for loyalty members. After every $50 purchase, customers could spin a virtual wheel to win additional points, discounts, or even gift cards. These lighthearted contests encouraged engagement and provided a sense of excitement for customers.
The loyalty program also incentivized referrals by offering bonus points for both the referrer and the new customer. Referrals helped Shopcalico acquire new customers while increasing loyalty among existing ones.
The gift card program generated consistent revenue, especially during holiday seasons when gift card sales surged. Recipients of gift cards often spent beyond the card’s value, contributing to a 12% YoY increase in ARR.
The loyalty program encouraged repeat purchases, with loyal customers shopping more frequently and spending more per visit. Overall LTV increased by 18%, with Gold-tier members spending 2.5x more than non-members.
The bonus value promotions tied to gift card purchases and the tiered rewards system incentivized customers to increase their basket size. AOV saw a significant uptick of 15% within six months of launching the program.
With multiple engagement touchpoints and fun incentives like birthday rewards and gamified experiences, Shopcalico saw a 20% increase in repeat purchases. The brand also reduced churn among loyalty members by 10%.
Shopcalico's best customers felt rewarded and valued, with many citing early access and exclusive experiences as key reasons for staying loyal. Customer satisfaction scores improved by 17%, reflecting the positive impact of the personalized loyalty experience.
Gift card recipients became new customers, with a 35% conversion rate from gift card redemption. The referral bonuses further contributed to a 25% increase in new customer acquisition through the loyalty program.
By integrating a robust gift card system with a dynamic loyalty program, Shopcalico successfully grew key business metrics while fostering deeper customer relationships. The strategy not only boosted revenue but also enhanced customer satisfaction and engagement, creating a community of loyal, repeat shoppers. Shopcalico’s approach exemplifies how blending financial incentives with fun and personal touches can drive business growth and customer loyalty.