Cigar Retailer Loyalty Program Case Study
Objective
A leading online and direct marketer of cigars and accessories was looking for a way to increase average order value, overall customer lifetime value and purchase frequency while also creating a subscription revenue stream.
With dozens of online cigar sellers out there and a discerning customer base of many connoisseurs, the customer experience had to be fantastic, and the program had to provide exceptional value.
Solution
To stand out in the cigar marketplace, the company partnered with ebbo to build and manage a membership-based premium loyalty program that offers excellent perks and value.
At a price point of $14.95 per month, cigar aficionados can opt-in to the program and enjoy premium benefits like automatic 10% cashback on every purchase, unlimited Saver shipping rebates and 24/7 customer service.
In addition to these benefits, members also receive 5% cash back at a curated Marketplace of over 1500 retailers and travel brands, plus shipping and return shipping rebates on those purchases, encouraging them to use the program often.
Members can view their savings at any time in their online member portal.
Results
The program continues to achieve the cigar retailer’s loyalty and revenue goals and cigar lovers are excited to join.
A balance of overall customer engagement and revenue was important to the brand from inception and it’s clear from the results that customers are not only joining but those customers prove to be more valuable than non-members.
In a competitive online marketplace where cigar sellers often have to compete on price, this program proves to be a differentiator that offers a high-end experience and amazing value for members.
- $32 AOV increase for members vs. non-members
- 60% increase in member acquisition
- 132% increase in orders
- 136% increase in revenue
- Nearly 30% gift card redemption increase
