As P&Co continues to expand, one of their primary goals has been to continue to nurture their loyal following whilst expanding into new global markets and reaching new customers. P&Co prioritises the community of customers that have grown with them over the years and have helped shape them into the retailers they are today.
We all know conversion rate is one of the most important eCommerce metrics. There’s no data that says how well your brand is doing than the percentage of people that interact with your site that turn into paying customers. P&Co then set Cake the challenge of optimising their conversion rate even further.
Increasing your conversion rate isn’t a simple case of finding new ways to convince website visitors to give you more money. And, there are a number of variables that can impact that conversion rate, from the messaging you use to describe your bestsellers (and who you’re talking to in that message) to your overall checkout experience. Before we proposed a solution, we knew we’d need to dive deeper into the data to find out a) where customers were dropping off b) where customers were typically spending the most money and c) why both of those things were happening how they were happening.
We drew on our team of performance marketing specialists at Cake to analyse that data. While micro-conversions are happening all the way through the customer journey (buying into your concept, clicking “learn more”, adding to cart etc), the weight of the conversion happens right at the end of the funnel - the checkout. We decided to focus our efforts here by asking the question:
How can we get more customers into the add to cart and checkout parts of the funnel so that we can increase conversion overall?
To introduce a loyalty program.
We already knew one of our most powerful assets with P&Co was their loyal, die-hard community of existing fans and customers. This, coupled with the fact that the add to cart rate of returning customers is 22.6% higher than the average visitor, was a glaring no-brainer for us – and here lies the power of looking at the data in the right places and at the right time.
The plan of action was now down to a simple equation: increase conversion rate by increasing the number of returning customers more likely to purchase.
The loyalty program idea was born from the idea that those who signed up to the program would be able to get exclusive discounts, shop collections early and build up points to get money off future purchases. This allowed us to tackle the challenge of increasing an already excellent conversion rate at the same time as building an even stronger brand presence:
P&Co opted for the tiered approach when it came to creating the program itself - each tier entitled the user to even more exclusive offers and discounts, the more points you had the higher the tier you were in.
It didn’t stop there - we didn’t just make the recommendation, our talented team of designers and web developers were able to integrate the loyalty program into P&Co’s current website and design assets for use across all email and social channels to let the community know and roll out the campaign with a higher initial sign-on and conversion rate at the point of launch. And they did all of this in just 2 months.
P&Co now have a fully tested loyalty program which fits seamlessly into their website and focuses on retaining and nurturing existing customers to increase their conversion rate. Which, as it happens, is already a massive success.
Don’t just take our word for it, though.
Since we launched at the start of September, 18,347 customers have enrolled into the loyalty program. Over 5 million points have been earned with 106 rewards claimed. Not only this, the average order value has increased by 13% from returning customers. And guess what, conversion rate has increased across both stores since launch (as well as 28% up from last year).
Every great relationship starts with a conversation. We’d love to talk with you about your next project and answer any questions you might have about Shopify. But be warned… once we get talking about this stuff, it’s hard to shut us up!