Oracle Lighting, a specialist in automotive lighting, recently implemented its VIP Rewards Program. It chose to use Zinrelo’s loyalty rewards platform as the engine of its new program. The objective is to improve customer retention.
 
Before it launched multiple promotion strategies, Oracle Lighting wanted to understand the impact of a rewards program. To measure the true impact of loyalty rewards, Oracle Lighting set up an A/B test. The company chose a small set of customers for the test and divided them into two groups, Group 1 (test group) and Group 2 (control group). A/B testing was carried out to measure the impact of a rewards program on these two groups.
 
Group 1 members were invited to join the loyalty rewards program. They were awarded points for their past purchases, making them eligible for rewards. This gave Group 1 members an opportunity to visit the Oracle Lighting site, redeem their reward points for coupons, and get discounts on their next purchase. Group 2 members were not invited to the rewards program. They were not given reward points for past purchases. Thus, Group 2 members were not eligible for any loyalty reward redemptions.
 
This test was run for a period of one month. At the end of the test period of one month, Zinrelo provided an analysis of the purchase patterns for both the test groups. It was observed that the repeat purchase percentage was 4.2 percent for Group 1 members. The repeat purchases percentage for Group 2 members was 0.43 percent. This observation showed that the repeat purchase rate jumped by 10 times for customers who were enrolled in a loyalty rewards program. Zinrelo also suggested additional strategies and loyalty campaigns that will increase the impact of a rewards program even further.
 
Loyalty programs help boost customer retention and lifetime spend. Oracle Lighting wanted to give its customers a reason to come back again and again. A/B testing showed that a loyalty rewards program was the best way to maximize customer retention.
 
Oracle Lighting continued to expand from the initial loyalty framework. Tiers were added to the VIP Rewards program. Additional points earning opportunities and perks like discounts and exclusive gifts were added.
 
“A loyalty rewards program, is a very effective tool to get customers to come back and make more purchases. A/B testing helped measure the impact,” says Sandy Crespo-Mossi, Operations Manager for Oracle Lighting. “Instead of giving cash discounts, we plan to do many promotions using the rewards program. This will make the customer come back for more.”
 
Samir Palnitkar, Vice President of Customer Success at Zinrelo, adds, “Zinrelo’s loyalty rewards platform is helping businesses to reach out and make deeper, long-lasting connections with their customers. Loyalty ensures that customers do not go to the competition, and this results in repeat business. We are empowering businesses to create personalized loyalty rewards programs with ease.”
 

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