How a Beauty Brand Uses GiftKart Rewards Program to Increase Average Order Value by 36%

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In a market saturated with beauty brands vying for customer attention, standing out requires not only offering quality products but also crafting strategies that incentivize customers to spend more and return for future purchases.

One beauty brand managed to crack the code by leveraging GiftKart's Reward Program, which not only incentivized higher value orders but also encouraged quick repeat orders. 

Let’s take a closer look at how the brand achieved a remarkable 36% increase in AOV through a well-crafted gift card reward campaign.

The Challenge

In the competitive beauty sector, customer retention and engagement are as vital as attracting new customers, especially now in a time of economic downturn drying up ad budgets and diminishing ROI. 

The objective was clear: to devise a strategy that not only enticed customers to increase their spending per order but also to cultivate a sense of brand loyalty that would facilitate repeated business. 

Success lay in crafting a campaign that could seamlessly integrate these goals, fostering a relationship where customers felt valued but also created a sense of urgency that would drive them to return and shop again.

Let's take a look in detail at the key challenges they faced:

  1. Customer Attrition Due to Product Experimentation: Customers in the beauty sector are often tempted to try new products, which can lead to a decrease in brand loyalty.
  2. High Competition and Market Saturation: The beauty industry is highly competitive, with numerous brands offering similar products. 
  3. Seasonal Fluctuations in Purchasing Behavior: The beauty industry often experiences seasonal fluctuations in sales, leading to an inconsistent return in revenue.
  4. Building Long-Term Relationships: Establishing long-term relationships with customers is a common challenge, especially due to the first two points mentioned above.
  5. Encouraging Higher Value Purchases: Brands often struggle to increase the average order value. 

The Solution

To address this challenge, the beauty brand turned to GiftKart, a versatile tool that facilitated the seamless setup and management of a reward program. 

Here's how the brand orchestrated a successful campaign: 

  1. Email Marketing Campaign: The brand emailed their customers about a limited-time offer where they could receive a $25 gift card on orders exceeding $250. This strategy was aimed at encouraging customers to place higher value orders, with the promise of a rewarding return.
  1. Automated Reward Program with GiftKart: Utilizing the GiftKart app, the brand set up a reward program that automatically added a $25 gift card to the cart for eligible orders, followed by an email notification containing the gift card details. This automation ensured a smooth and hassle-free experience for both the brand and the customers.
  1. Creating Urgency with a Time-Bound Reward: To foster a sense of urgency and encourage quick repeat purchases, the issued reward cards had a one-month expiry date. This strategy was designed to nudge customers to return and redeem their rewards within a short timeframe, thus accelerating the cycle of repeat purchases.
  1. Integration with Klaviyo for Targeted Email Flows: The brand integrated GiftKart with Klaviyo to design a series of email flows. These emails not only notified customers about the reward but also sent reminder emails coupled with product recommendations, creating a personalized and engaging customer experience.

The Results

The beauty brand witnessed a significant 36% increase in the average order value to $155.68 after implementing the Gift Card Rewards program!

From only 175 reward card codes and 1332 gift cards issued, the brand enjoyed a $21.5k upsell revenue and a total revenue of  $26.15k, making the campaign a resounding success.

Ready to use gift cards to increase your Shopify store revenue? 

Install GiftKart today

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