How Revolution Beauty drove 8x ROI with Yotpo Loyalty
Founded in 2014 by Adam Minto and Tom Allsworth, Revolution Beauty has completely disrupted the beauty industry by focusing on holistic accessibility. Whether it be their affordable price point or diverse shade ranges, the brand is dedicated to making beauty inclusive for everyone.
- Revolution Beauty wanted to accelerate D2C growth and incentivize customers to shop directly
- Over 75% of online shoppers only made one purchase, highlighting the need for a loyalty program
- The brand also needed a way to collect more first-party data so that they could effectively understand their consumers
While their products were already being successfully sold in major US and UK retailers — Boots, Ulta, Superdrug, Target — Revolution Beauty’s online channel was growing rapidly. To accommodate, and further incentivize, their D2C shoppers, the brand was looking to deliver captivating experiences throughout the entire customer journey.
When you're expanding so much...it becomes quite pertinent for you to think about what your direct-to-consumer experience needs to be. Those customers have a relationship with that particular brand. And so...you have to really think about what value are you going to offer to customers who are shopping with you directly? What does that experience need to be?
Customer retention was also an issue — the majority of Revolution Beauty’s shoppers only made one purchase. To shift customer behavior and increase their repeat purchase rate, the brand needed to provide a clear value set to incentivize customer loyalty. A loyalty program was the clear answer, but, at the time, they didn’t know what would keep customers coming back without accessing and understanding customer data.
- Built RevRewards, a tiered loyalty program that offered distinct and elevated experiences for shoppers
- To create a program that would resonate and succeed, Revolution Beauty reached out to their customers directly to see what they wanted from a loyalty experience
- Continued to deliver high-value experiences through ongoing program management and optimization informed by customer data
Revolution Beauty partnered with global digital agency Astound Commerce to re-platform their existing website to Salesforce Commerce Cloud, creating an engaging digital touchpoint for those looking to shop directly.
And, under Astound Commerce’s guidance, the brand turned to Yotpo to build an agile loyalty program that elevated customer experiences and motivated specific behaviors.
Externally, Revolution Beauty reached out to customers via social media to understand exactly what shoppers wanted to see from their program. They also considered other loyalty schemes and identified where they could differentiate themselves. Internally, Revolution Beauty conducted financial modeling, ensuring that the tech aligned with their ultimate business goals.
Using this data, RevRewards was born, a loyalty program that incentivized incremental behavioral change in exchange for points, VIP perks, and more. Plus, Yotpo’s solution made it easy for Revolution Beauty to monitor and assess different customer motivations. If certain elements underperformed, the brand could restructure the program accordingly.
We have a mantra: ‘You ask; We listen.' We asked our customers what they would like to see, and loyalty came up [as] quite a common thread.
- Revolution Beauty was blown away by how well the program performed — every expected financial metric was exceeded
- Boosted repeat purchase rate more than 2x
- Effectively and repeatedly motivated customer behavior
RevRewards has outperformed every expected financial metric the brand set at the program’s launch. Using Yotpo’s Loyalty solution has increased average purchase rate by 234% , clearly evidencing how delivering elevated customer experiences transforms customer retention.
Mapping out what customer behaviors they wanted to reward, drive, and change, Revolution Beauty strategized and built their program accordingly. And loyalty members quickly became their best customers — the brand saw a +378% increase in lifetime revenue per member and +44% in average order value (AOV).
By motivating behavioral changes, Revolution Beauty saw incremental revenue growth and increased emotional attachment. Their program design made it simple to reward for spend, but also to create campaigns that incentive social follows, email sign-ups, and more.
The performance of [RevRewards] was better than what we'd modeled. Look at the lifetime revenue for the best customers within the program — ￡174. [Members are] shopping nearly four times a year.
This piece was originally published on Yotpo.com