FSAstore.com, an e-commerce marketplace that sells products eligible for flexible spending accounts, has gained 1 million subscribers as a result of using Zinrelo’s loyalty rewards platform to drive its loyalty program.
Companies tend to spend an inordinate share of their marketing budgets on campaigns that seek customer acquisition. The focus on acquisition overlooks the fact that the rate of customer attrition after first purchase is substantial. FSAstore has decided, instead, to prioritize customer retention by offering its program FSA Perks.
FSA Perks is a tiered loyalty program that has enabled FSAstore to identify customers who have not shopped in six months. The company then sends a win-back promotion that offers bonus points for shopping within a week to these customers, circumventing churn. This has proven effective at engaging customers.
In addition, the company offers a website feature called an FSA Tracker, which enables customers to input their FSA deadlines and receive email reminders to notify them when their spending deadlines are approaching. To encourage customers to provide these details, FSAstore.com used loyalty points as an incentive. Bonus points were awarded to customers who entered their spending deadlines. This resulted in a noticeable uptick in FSA Tracker use.
Zinrelo’s platform offers a higher incentive to top FSAstore customers who stay active with their yearly tax-free healthcare spending. Multiple reward tiers based on various customer segments have helped drive higher participation in the loyalty program.
“The Zinrelo loyalty program platform and marketing automation tool allows us to customize the FSA Perks program and maintain awareness and engagement with customers,” says Larry Gray, Digital CRM Director at FSAstore.com. “In the same way that FSAstore.com strives to give account holders peace of mind about their healthcare dollars, Zinrelo gives us peace of mind that we are retaining those valuable relationships with customers.”
To improve customer retention, FSA has executed several successful promotional campaigns using loyalty points. A recent November 2018 campaign resulted in 1,081 incremental orders and $77,000 incremental revenue in just two weeks.
“The Zinrelo loyalty rewards program is helping businesses to reach out and make deeper long-lasting connections with their customers,” says Samir Palnitkar, VP of Customer Success at Zinrelo. “Loyalty ensures that customers do not go to competition, and this leads to repeat business. We are empowering enterprises to create personalized loyalty rewards programs with ease.”