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Webinar How DefenAge, a skincare company, got 2.89X revenue with TrueLoyal's Loyalty Platform?

Beauty being an intimate industry with very personal choices of cosmetics and services demands a high level of personalization and targeting. A loyalty program backed with data analytics can accelerate the ability of beauty brands to personalize their approach, deliver experiences, and build engagement. New research shows a 222% increase in customer acquisition costs puts renewed focus on e-commerce profitability and repeat sales.

Loyalty program essentials to:

  • Increase revenue
  • Increase purchase frequency
  • Boost customer retention
  • What helped the DefenAge Skin Club Rewards Program succeed?

In this webinar conducted on 16th February 2023, industry experts Brad McLaughlin - Director of e-Commerce, DefenAge®, Annette Berg – Director of Customer Experience, DefenAge® and Dibyo Ghosh, Director of Enterprise Solutions at TrueLoyal share their insights on how DefenAge, a leading beauty and skincare company, increased repeat revenue by 2.89X by launching a very successful loyalty program with TrueLoyal. Watch the recording for the webinar below:

Watch the webinar recording here:

https://www.youtube.com/embed/iWmpbwxpiZA

Key highlights from the webinar:

Why was DefenAge looking for a Loyalty Program

  • Defenage already had a high customer retention rate but wanted to increase it further while giving their customers a great luxury experience.
  • Purchase frequency - Increase re-order rate within current customers and increase AOV with upselling & cross selling.
  • Improve advocacy - Acquire new customers via referrals and word of mouth, social sharing (Earned media)
  • Improve branding & customer engagement - Building a better understanding of who we are as a company with a connection for our customers, and specific to their industry.
  • Provide a seamless experience to customers and also for the admin at the backen

Why did the loyalty program work

1. Contextual Program design

  • TrueLoyal helped in the program structure by analyzing Defenage's historical purchase data and understanding their business objectives.
  • This helped in creating a well-structured program that was tailored to our needs, which improved customer retention and repeat purchases.

2. Multi-dimensional loyalty – transactional to emotional, including advocacy

  • The big win was referrals & customer acquisition through advocacy.
  • Defenage achieved 100X of our investment for the setup of referral campaigns.

3. Ongoing strategic consultation

  • Custom reports: list of members downgraded on Jan 1, 2023.
  • TAT: 10 days – outside of TrueLoyal's contractual commitments
  • This helped in re-engagement, winback campaigns and boosted Jan sales (a typically low season)

4. List of recommendations made by TrueLoyal based on analysis

  • Promotions (e.g., 5x points on the 4th July weekend for Purple tier members)
  • Optimum Tier thresholds Points - 3Tier
  • Win Back at 6 months
    • Points expiration of 12 months (vis-à-vis 15) – business strategy to be aggressive
    • Adding additional Tier Benefits apart from Tier Acceleration 1.25X for Middle Tier and 1.5X for Top Tier

Results

  • Repeat revenue per member: 2.89X increase
  • Purchase frequency: 71% increase
  • Customer retention: 31% increase
  • Referrals: ~ 100X ROI of referral module

Excerpts from the Q & A Section of the Webinar

Q1. How did Defenage keep new customers engaged?

  • Different activities to earn points which gets customers engaged with the brand keeps them coming back to the website.
  • Loyalty points and targeted campaigns with very specific customer attributes ensured the customers remained emotionally attached to the brand.

Q2. Apart from the numbers what other benefits can we get from a loyalty program?

  • Defenage have benefited in other ways that are difficult to quantify.
  • For example, there is a much better overall customer experience and delight – a bit of an emotional experience for customers, and that's attributable to not only the program but the design and perks.
  • Conversion of website visitors to customers has increased and Defenage sees more traction on social media, increase in advocacy, and referrals.

Q3. Summer months are generally low volume for cosmetics products. How can a loyalty program help?

  • Focus on highest selling product and provide tier upgrades.
  • Targeted bonus points campaigns

Client Testimonials

See what our clients have to say.

The Simple Solutions community has become a resource across our entire marketing department, as it helps us solve a variety of our business challenges. Led to +16% Increase in Consumption, +8%x Increase in Net Promoter Score, and 52K+x Pieces of User-Generated Content.
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Brand Manager
Arm & Hammer
The Hero Skin Squad is actively sharing their positive experiences with our products, participating in product development, and helping us spread the word about our new launches. Hero Cosmetics has increased Conversions by +21% in 100 Days with Sampling and Reviews
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Amy Calhoun Robb
VP of Marketing | Hero Cosmetics
The loyalty program helped us create stronger customer engagement and we have seen the average order value increase by 25.29%
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Pia Shah
Marketing Analyst | Stride Rite
The structure which TrueLoyal proposed was backed by sound data analysis. I was amazed to see the insights we got. Our customers are now engaged better with our brand. I am more than satisfied with the program.
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Anabel Peralta
E-commerce Manager | Kid's Warehouse
We were able to capitalize on the holiday season wave with TrueLoyal's loyalty platform. Not only can TrueLoyal help reap benefits, but also sustain such growth. Our repeat purchase revenue increased by 12.45% over and above our holiday season high.
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Shelbi Johnson
Marketing Manager | Coolhorse
The results from the rewards program are encouraging; in just 6 months after launching the rewards program our customer retention rate has increased by 14X.
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Anthony Scott
Director of Digital Operations | KBS Research
TrueLoyal's data sciences team helped me to optimize the structure of our program. Within just three months after the launch, we witnessed an impressive 26.72% improvement in customer retention and a 23.39% increase in repeat purchase revenue.
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Brittany Boykow
Director of E-Commerce | LAFCO
Great service with extremely professional customer support. Very happy with the response time from these guys! Would recommend giving them a try.
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Sam Gastro
CEO | MyGiftCardSupply
TrueLoyal identified potential areas to boost the revenues and suggested strategies to achieve it. I loved their methodical approach to achieve our business objectives.
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Natalie Novak-Bauss
Owner | KPS Essentials
We wanted to unlock the true potential of our growing customer base. Our first goal was to deliver a seamless customer experience, and we love the strategic consultation offered by TrueLoyal throughout this journey.
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Annette Berg
Director of Customer Experience | Defenage
We intuitively know that loyalty reward programs help increase repeat sales. The A/B testing helped quantify the impact.
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Fabricio Sant’Anna
Marketing Manager | Nature’s Fusions

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