In the highly competitive beauty industry, creating avenues for upfront revenue and fostering customer loyalty are vital strategies.
Discover how a prominent beauty brand utilized GiftKart to sell high-value gift cards at a discount, generating a staggering $250,000 in upfront revenue and securing customers for future purchases.
In a market where customer retention is as crucial as acquisition, the beauty brand sought innovative strategies to lock in customers for future purchases.
Not only did they want to craft a campaign that generated significant upfront revenue but also encouraged customers to return, fostering a loyal customer base.
Here are some of the challenges they faced:
- Creating Anticipation and Excitement: The brand needed a strategy that would create a buzz among their customer base, encouraging them to eagerly anticipate their next purchase.
- Encouraging Future Purchases: By offering gift cards at a discounted rate, the brand aimed to create a cycle where customers would be incentivized to return and shop again, thus increasing the lifetime value of each customer.
- Improving Customer Loyalty: Gift cards serve as an excellent tool to enhance customer loyalty. Customers who purchase gift cards are likely to return, and with a discounted incentive, they perceive added value, fostering a positive relationship with the brand.
- Generating Upfront Revenue: The brand sought to generate a significant amount of upfront revenue, which could be reinvested into the business for further growth and expansion.
- Acquiring New Customers: Gift cards are not only a retention tool but also a potent customer acquisition strategy. Often, gift cards are gifted to others, introducing new customers to the brand, and potentially converting them into loyal customers.
The beauty brand turned to GiftKart to facilitate the creation and management of a discounted gift card campaign.
Here's how the brand set up a successful campaign:
1. Email Marketing
Leveraging their customer database, the brand sent out emails announcing a limited-time offer where customers could purchase a $250 gift card for just $200, promising substantial savings.
2. Utilizing GiftKart
The brand set up the discounted gift cards seamlessly on the GiftKart app, a process that was both quick and hassle-free.
3. Strategic Delay
To prevent immediate conversions and encourage future purchases, the issuance of the discounted gift cards was delayed by three days, ensuring that customers would return to make purchases at a later date.
4. Integration with Klaviyo
The brand integrated GiftKart with Klaviyo, designing a targeted email flow to notify customers about the discounted gift card offer, keeping the excitement and anticipation alive.
The campaign was a resounding success, with the beauty brand generating $250,000 in upfront revenue.
Moreover, the strategy effectively locked in customers for future purchases, promising a steady stream of revenue in the coming months.
The discounted gift card campaign positioned the brand as a customer-centric entity, offering value while encouraging brand loyalty.
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