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25% increase in Natori's Customer LTV due to Unified Commerce Gift Card Integration

OVERVIEW

Natori is a renowned fashion brand, specializing in luxurious apparel, lingerie, and home decor. With a commitment to delivering elegant and high-quality products, Natori operates in both physical stores and online via their BigCommerce platform. As a Unified Commerce retailer, Natori strives to provide customers with a seamless shopping experience across all touchpoints.

CHALLENGE

As Natori expanded their operations, they faced several key challenges:

  • Gift Card Management Integration:

    Natori needed a solution to integrate gift cards with Narvar, their return and exchange management platform. This would enable the brand to offer refunds in the form of gift cards, ensuring customers could redeem their credits online seamlessly.

  • Operational Efficiency:

    The manual processes for managing gift card refunds, reconciliations, and tracking were time-consuming and prone to errors. Natori needed to eliminate these inefficiencies to save time and reduce administrative burdens.

  • Customer Retention & Engagement:

    Natori wanted to encourage customers to choose gift cards as refunds, thereby increasing the chances of repeat purchases and boosting customer lifetime value (LTV).

The primary objectives were to:

  • Implement a gift card system that integrates with Narvar for online refunds and gift card redemptions.

  • Improve operational efficiency by automating the gift card process.

  • Increase key metrics like Annual Recurring Revenue (ARR), Average Order Value (AOV), LTV, and repeat purchases.

  • Create a fun, rewarding experience for customers, driving engagement and loyalty.

Natori

SOLUTION

Gift Card System Integration with BigCommerce and Narvar

  1. Seamless Gift Card Integration with BigCommerce and Narvar:

    To address the challenge of managing refunds through gift cards, Natori implemented a third-party gift card management solution that integrated directly with both BigCommerce and Narvar.

    • Gift Card for Refunds:

      • Customers who initiated returns through Narvar could opt for a gift card refund instead of a traditional payment refund. This kept customers within Natori’s ecosystem, as they were incentivized to return and make additional purchases.

      • The system automatically issued gift cards with the refund amount, which could be redeemed exclusively on Natori’s online store, powered by BigCommerce.

    • Real-Time Balance Synchronization:

      • Gift card balances were updated in real-time, ensuring customers could track and redeem their refunds without any delays. This integration ensured smooth workflows across Narvar and BigCommerce, enhancing customer satisfaction.

  2. Operational Efficiency and Automation:

    • Automated Gift Card Issuance:

      The integration between Narvar and the gift card management system automated the entire refund process. When a customer opted for a gift card refund, it was instantly issued and sent to the customer’s email, reducing manual intervention by Natori’s team.

    • Time-Saving Automation:

      The seamless workflow saved Natori hours of manual work that was previously required for tracking and reconciling refunds and gift cards. Customer service representatives no longer had to process refunds manually, allowing them to focus on more strategic tasks.

  3. Enhanced Customer Experience and Loyalty:

    • Customer-Friendly Refund Process:

      The integration with Narvar gave customers more control over their returns. Offering gift cards as a refund option incentivized customers to continue shopping at Natori, ensuring that they remained engaged with the brand.

    • Marketing Opportunities:

      With the integration in place, Natori could follow up with customers who received gift card refunds, offering personalized promotions and reminders to encourage redemption. This not only increased repeat purchases but also created a fun, rewarding experience for customers.

Natori Solution

RESULT

  1. Seamless Integration and Time Savings:

    • Hours of Manual Work Saved:

      The integration eliminated the need for manual processing of refunds and gift card issuance, saving Natori’s operations team several hours each week. The automated process also reduced the risk of human error, ensuring a smoother experience for both customers and the internal team.

    • Operational Efficiency:

      Natori’s systems now worked in perfect harmony, with Narvar handling the return process and the gift card solution automating refunds. This seamless flow improved overall efficiency and allowed Natori to scale operations with ease.

  2. Boost in Key Business Metrics:

    • Increased Annual Recurring Revenue (ARR):

      The shift to gift card refunds encouraged customers to make additional purchases, leading to a 12% increase in ARR. By keeping refund value within the Natori ecosystem, the brand could drive more sales and repeat purchases.

    • Higher Customer Lifetime Value (LTV):

      Offering gift cards for refunds kept customers loyal to the brand. Many customers who received gift card refunds returned to make larger purchases, resulting in a 15% increase in LTV.

    • Increased Average Order Value (AOV):

      Customers often spent more than the amount of their gift card refunds, boosting AOV by 10%. The integration also allowed Natori to upsell and cross-sell products during the checkout process, further increasing order value.

  3. Increased Repeat Purchases and Customer Retention:

    • 20% Increase in Repeat Purchases:

      The gift card refund option encouraged customers to return to Natori’s online store. Many customers used their gift cards to make repeat purchases, driving a 20% increase in repeat buying behavior.

    • Improved Customer Satisfaction:

      Customers appreciated the flexibility of choosing a gift card for refunds, as it gave them an easy way to shop again with Natori. The smooth refund process enhanced their shopping experience, which led to increased customer satisfaction and loyalty.

  4. Fun and Engaging Promotions:

    • Gift Card Promotions:

      Natori launched engaging promotions around gift cards, such as offering bonus credits when customers opted for gift card refunds or special seasonal promotions where gift cards could unlock exclusive discounts.

    • Loyalty Rewards:

      By tying gift cards into their loyalty rewards program, Natori created a fun and rewarding experience for their best customers. This gamified approach kept customers engaged and motivated to return for more purchases.

CONCLUSION

By integrating a unified gift card management system with Narvar and BigCommerce, Natori successfully streamlined its refund process, saved hours of manual work, and improved the overall shopping experience. The integration not only helped Natori grow key business metrics like ARR, LTV, and AOV but also boosted repeat purchases and customer loyalty. The seamless workflow allowed Natori to focus on creating a fun and engaging experience for their customers, while rewarding their best shoppers and encouraging ongoing engagement with the brand.