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MVMT » THIRDLOVE » BEST CHOICE PRODUCTS LAUREN JAMES » SOKO GLAM » SAND CLOUD UNTUCKIT » FIGS » THRIVE CAUSEMETICS for More Info, Go to Yotpo.Com 2 LOYALTY BLUEPRINT

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MVMT » THIRDLOVE » BEST CHOICE PRODUCTS LAUREN JAMES » SOKO GLAM » SAND CLOUD UNTUCKIT » FIGS » THRIVE CAUSEMETICS for More Info, Go to Yotpo.Com 2 LOYALTY BLUEPRINT 1 LOYALTY BLUEPRINT LOYALTY BLUEPRINT BUILD A LOYALTY PROGRAM THAT REWARDS YOUR CUSTOMERS & GROWS YOUR BUSINESS Featured Brands MVMT » THIRDLOVE » BEST CHOICE PRODUCTS LAUREN JAMES » SOKO GLAM » SAND CLOUD UNTUCKIT » FIGS » THRIVE CAUSEMETICS For more info, go to yotpo.com 2 LOYALTY BLUEPRINT pg.3 pg.6 pg.11 pg.14 pg.17 Introduction Introduction The New Blueprint MVMT ThirdLove Best Choice Products For Customer Loyalty Agency: BVAccel Platform: Shopify Plus Platform: Shopify Plus Platform: Shopify Plus pg.4 pg.8 pg.12 pg.15 pg.18 Why Loyalty The Transactional Examples Program Customer Loyalty Lauren James Soko Glam Sand Cloud Matters Platform: Shopify Plus Platform: Shopify Plus Platform: Shopify Plus The New Blueprint For Customer Loyalty The New Blueprint For Approach pg.5 pg.9 pg.13 pg. 16 pg.19 The Myth of The Functional UNTUCKit FIGS Thrive Causemetics One Size Fits All Approach Agency: BVAccel Agency: Fuel Made Platform: Shopify Plus Platform: Shopify Plus Platform: Shopify Plus pg.10 pg.20 The Emotional What is Yotpo? Approach 3 LOYALTY BLUEPRINT Loyalty programs They’re a strategic investment for future-proofing your brand. In a world are no longer a where brands cannot compete on price nice to have. and product functionality alone, loyalty is the most powerful tool you have to sustain brand strength and longevity. 4 LOYALTY BLUEPRINT LOYALTY HELPS YOU FUTURE PROOF YOUR BRAND IN A STAY Why COMPETITIVE MARKET COMPETITIVE CUSTOMERS ARE Loyalty MORE BRAND LOYAL THAN EVER BEFORE of customers say they are willing 39.4% to pay more for a product from Matters a brand they're loyal to, even if competitors offer cheaper alternatives. BUILDING LOYALTY IS ON THE RISE CUSTOMER LOYALTY IS A LONG-TERM INVESTMENT THAT NEEDS TO BE LOYALTY EARNED AND RE-EARNED IN THE AMAZON AGE 52.3% 90.2% of consumers say it takes at least say they are willing consider themselves three purchases for them to consider to join a loyalty or VIP equally or more brand 70% themselves brand loyal. By incentivizing program for brands loyal compared to a customers to come back time and time they love. year ago. again, rewards programs encourage the repeat purchases necessary for loyalty. IN THE HUNT FOR THE CAC/ “IN THE NEXT ERA OF ECOMMERCE, LTV SWEET SPOT, LOYALTY YOU HAVE TWO OPTIONS: LOSE YOUR PROGRAMS HAVE BENEFITS HARD-EARNED CUSTOMERS TO THE BEYOND LIFETIME VALUE COMPETITION, OR INVEST IN BUILDING A BRAND THAT CUSTOMERS TRULY of customers will share their favorite brands LOVE.” with friends and family. Loyalty programs HANA ABAZA that incentivize customers to share ensure 60% HEAD OF MARKETING referrals aren’t left up to chance. SHOPIFY PLUS 5 LOYALTY BLUEPRINT Traditional loyalty programs are too complicated, transactional, and homogenous for the digital consumers of today. That’s why, in recent years, programs have evolved to move away from focusing exclusively on behavioral loyalty — getting that next incremental transaction — to promote emotional loyalty through experiences. At the same time, blindly prescribing emotional loyalty drivers as the ultimate solution is still a one size fits all mentality. Before formulating your distinct blueprint for loyalty, first understand your own engagement points and THE business drivers. OF ONE MYTH “The key to getting loyalty right is understanding the motivation SIZE FITS and context of why a customer is buying from your brand in the first place. Only then can you design a program that amplifies the factors that lead to loyalty.” Martina England VP Commercial Strategy & Alliances ALL CORRA 6 LOYALTY BLUEPRINT As J.Crew’s former CEO said about their core customer: “She’s loyal as hell until we go wrong, then she wants it THE TRANSACTIONAL all on sale.” APPROACH Transactional Customer loyalty doesn’t follow Focuses on lowering the barrier to a linear journey. A customer’s entry in the early stages of a brand's relationship with your brand is relationship with a consumer. constantly changing, and your approach needs to be dynamic enough to adapt. This flexible framework is comprised of three approaches to loyalty. Functional Emotional THE EMOTIONAL THE FUNCTIONAL APPROACH APPROACH Caters to customers who love the brand for reasons Turns occasional customers into that go beyond price and functionality and are willing loyal buyers by creating value above THE NEW THE NEW BLUEPRINT CUSTOMER FOR LOYALT Y to pay more because of their emotional connection and beyond the purchase. to a brand. 7 LOYALTY BLUEPRINT To understand the difference between the approaches, think about why you (as a customer) love your favorite retail brand. Most likely, you’re loyal for one of the following reasons: Transactional Functional GOOD VALUE CONVENIENCE FOR MONEY OR QUALITY Brands don’t necessarily need to be excellent at everything to win a customer’s loyalty. They can choose an approach that brings the most value to their customers and addresses their Emotional specific business goals. JUST LOVE IT 8 LOYALTY BLUEPRINT The Transactional "THERE'S AN OLD Approach SAYING THAT FALSE The Transactional Approach is all about offering LOVE CAN BE BOUGHT, real monetary value to lower the barrier to entry and improve acquisition. Transactional loyalty is most powerful in the early stages of the customer relationship, when a monetary incentive can BUT TRUE LOVE IS provide the extra push to purchase. PRICELESS. YOU MAY WHAT DOES IT NOT BE ABLE TO ACHIEVE? BUY LOYALTY, BUT ▶ Improves acquisition via referrals THIS FINANCIAL INCENTIVES ▶ Lowers the barrier to entry APPROACH for the first purchase ARE A POWERFUL ▶ Builds long-term loyalty via MAY BE FOR initial retention WAY TO BRING NEW ▶ Sustains the relationship YOU IF: post-purchase ▶ You generally have high LTV ▶ Reduces time to second CUSTOMERS IN." ▶ You want to focus on purchase lowering the barrier to entry Josh Ezner for new customers CEO and Co-founder ▶ You need to educate Swell (A Yotpo Company) customers on why your product is better than competitors' 9 LOYALTY BLUEPRINT "Functional loyalty The allows brands to leverage perks beyond price Functional cuts, providing value through aspects like product (free samples, Approach exclusive access to new products) or experience How do you continue to show value to customers (free shipping)." without offering a discount every time? How do you make sure customers pick your brand over a competitor who offers a coupon? The Functional Approach focuses on all the ways you can give tangible value to customers beyond monetary incentives. This approach is designed to inherently create value above and beyond the THIS purchase. APPROACH MAY BE FOR WHAT DOES IT YOU IF: ACHIEVE? ▶ You sell products that people buy frequently ▶ Deepens relationships with ▶ You sell a variety of closest customers products and want to make ▶ Prevents churn to other sure they all get visibility brands ▶ You need an alternative to ▶ Boosts perceived value offering discounts without relying on ▶ You’re wary about reducing transactional benefits prices (e.g. premium or luxury brands) ▶ Your pricing model doesn’t leave room for promotions JESS GOULART (e.g. subscription boxes) HEAD OF MARKETING & ALLIANCES BORN GROUP 10 LOYALTY BLUEPRINT The Emotional “Emotionally loyal customers feel that Approach your brand is a part of their lifestyle. The emotional approach is all How do you continue to offer value to your most loyal customers? How do you create a legion of about communicating brand fans who recommend you to everyone they know? THIS your brand story and Emotional loyalty is deep-seated allegiance to rewarding the customers a brand based on intangible benefits that often APPROACH outweigh price, convenience, or product. The who actively take part Emotional Approach seeks to fundamentally MAY BE FOR in it. This approach shape how people see your brand and focuses on answering the question, “What kind of brand is X?” YOU IF: also gives customers a ▶ Your goal is to remain top of reason to engage with mind for customers the brand even when WHAT DOES IT ▶ You’re a wholesaler or sell ACHIEVE? products made by other they aren’t buying, brands strengthening the ▶ You need to educate connection between ▶ Creates opportunities for customers on your brand customers to engage with story shopping sessions.” the brand beyond purchases ▶ You leverage inter-purchase Jonathan Poma Chief Evangelist ▶ Builds a community of vocal engagement to drive repeat BVAccel brand advocates purchases ▶ Develops lifelong customer loyalty 11 LOYALTY BLUEPRINT > PROFILE > BRAND SPOTLIGHT Brand: MVMT Entrepreneurs Jake Kassan and Kramer Industry: Accessories & Fashion LaPlante founded MVMT in 2013 after Characteristics: High AOV, high LTV identifying a lack of stylish, high-quality Program Goals: Reduce barrier to entry but affordable watches in the market. for first purchase and get customers The brand was built on the idea that through the door luxury timepieces shouldn’t break the Approach: Transactional bank — and their customers couldn’t agree more. By selling directly to consumers, MVMT could sell designer- quality watches at a great price, launching them into hyper-growth and > BEST PRACTICES making them industry leaders. THE As a budding lifestyle brand, MVMT’s • Simple referral program: Give X, Get X program is built to create a complete • Maximize shareability experience for their customers that is driven by value. MVMT was started as a watch brand, and many consumers still view them as such, but they’ve leveraged their loyalty program to play a major role LIFESTYLE in routing out their brand and image. Through a program that heavily values purchases, customers accumulate points REWARD YOURSELF and value at a rate where it makes sense to frequently return to their site and make purchases. BRAND GIVE $60, GET 100 POINTS MVMT uses a win-win referral program that’s engineered to make referring a EMAIL YOUR FRIENDS: Separate with commas friend as simple as possible.
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