The FSA Store Loyalty Program Impact

Health and Wellness

The FSA Store’s structured loyalty program increased customer lifetime value by 22% and website purchases by 46% by driving repeat sales, engagement, and improved long-term brand interactions.

About FSAstore.com

FSAstore.com is both the largest online marketplace for guaranteed FSA-eligible products and an educational resource that you can actually understand. It’s the company’s mission to help millions of ﬂexible spending account holders manage and use their FSAs and save on more than 4,000 health items using tax-free health money.

Key Results

22%

increase in customer lifetime value

46%

Increase in website purchases

1M+

More than 1 million members enrolled in the rewards program

The solution: A rewards program

With the objective of maximizing revenue by improving customer retention, FSAstore.com implemented an attractive rewards program using TrueLoyal's modern-day loyalty rewards platform. It achieved a whopping 1 million subscribers for its FSA Perks Rewards Program.

FSA perks – Rewards program overview

With the FSA Perks rewards program, FSAstore.com was able to migrate to points-based promotions instead of cash discounts.
For example, FSAstore.com could identify customers who had not shopped in six months. For these “at-risk” customers, a win-back promotion was delivered that oﬀered bonus points for making a purchase within a week. This promotion proved eﬀective at engaging customers who were likely to be lost.

With the objective of maximizing revenue by improving customer retention, FSAstore.com implemented an attractive rewards program using TrueLoyal’s modern-day loyalty rewards platform. It achieved a whopping 1 million subscribers for its FSA Perks Rewards Program.

Engagement with rewards program

FSAstore.com used the rewards program to increase customer engagement. For example, a website feature named FSA Tracker enabled customers to input their FSA deadlines and receive email reminders to notify them when their spending deadlines were approaching. Unfortunately, customers were not utilizing this feature. To encourage customers to provide these details, FSAstore.com used rewards points as an incentive. Bonus points were awarded to customers who entered their spending deadlines. This resulted in a noticeable increase in FSA Tracker use.

Promotion using rewards points instead of discounts

Winback promotion: Reward at-risk customers with bonus points when they buy within a limited period.
Redeemed but not purchased: Target customers who exchanged points for coupons but did not make purchases.
Sweepstakes: Sweepstakes activity around the shopping season to encourage more participation and engagement in the program.

Engaging VIP customers

TrueLoyal oﬀered a higher incentive to FSAstore.com VIP customers who were extremely active with their yearly tax-free health spending. Multiple reward tiers based on various customer segments helped drive higher participation in the rewards program. Data analytics provided more insights to plan and execute campaigns.

Regression analysis – Life time value uplift

FSAstore.com took a cohort of users acquired over a few months in 2018. Based on past data, they applied regression analysis to predict the Customer Life Time Value (Customer LTV or CLTV) 12 months after acquisition. Then they ran loyalty promotions using TrueLoyal’s rewards program for this cohort of users and measured the actual CLTV after 12 months. By comparing the predicted vs actual value of CTLV, FSAStore.com concluded that the loyalty rewards program promotions resulted in a 22% uplift in CLTV.