Luxury fashion retailer LUISAVIAROMA saw 10% uplift in average order value within three months following the introduction of a new loyalty programme

Customer Experience (140), Data & Analytics (101), Ecommerce (180), Retail (179), US (99), UK (317), Americas (126), EMEA (356)

Popular online luxury fashion destination LUISAVIAROMA wanted to offer more value to customers and offset increased customer acquisition costs with the introduction of a tiered loyalty programme.

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Summary

Luxury online fashion destination LUISAVIAROMA teamed up with Antavo to create a gamified loyalty programme called LVR Privilege. Available in multiple languages, the programme offers a personalised experience and works across eight currencies to reward customers based on their spend and levels of engagement. Working alongside LUISAVIAROMA’s existing web store and email marketing provider Emarsys, Antavo’s programme helped to deliver impressive results within the first three months following launch. The brand saw 10% uplift in average order value, 5% uplift in purchase frequency, 4.7% revenue increase and 293% return on investment.

Objectives & Aims

Competition within the luxury fashion market is growing, and the transparency of prices and increased number of shopping options has made customer acquisition more difficult. For this reason, LUISAVIAROMA decided to shift their focus away from customer acquisition and onto customer retention. Loyalty programmes among affluent buyers have limited proven effectiveness, so it was a new challenge for the brand and for partner Antavo.

Antavo was asked to create a loyalty programme that would fit with LUISAVIAROMA’s brand image and interest their audience. It was important to recognise the global nature of their audience, and personalise communications according to geography as well as purchases and engagement.

The loyalty programme needed to be managed from one platform, allow communication targeted to different regional markets, reward customers differently based on spend and reactivate customers by including loyalty data in email campaigns.

Implementation, Execution & Tactics

Antavo and LUISAVIAROMA went through a three-stage process to implement the new loyalty scheme:

  1. Completely integrate the programme with LUISAVIAROMA’s existing systems.
  2. Create a loyalty mechanism involving gamification.

As well as rewarding online purchases, the following activities also received points rewards:

  • Programme enrolment
  • Profile completion
  • Social account connection
  • Sharing product pages

This allowed a move away from discount-oriented loyalty, an effect heightened with the introduction of customer tiers with benefits such as birthday points and VIP events.

  1. Build high-converting email campaigns based on loyalty data.

Integration between Antavo and Emarsys, LUISAVIAROMA’s email service, allowed the introduction of the following loyalty-based emails:

  • Loyalty programme announcement
  • Pending points emails
  • Loyalty point status in newsletters

Results

In its first three months, the loyalty programme generated the following results:

  • 293% return on investment
  • 10% uplift in average order value
  • 5% uplift in frequency of purchases
  • 4.7% uplift in revenue

Among LUISAVIAROMA’s customer base, the programme has activated mostly high spenders. In fact, the top 10% of the loyalty members have generated 55% of LUISAVIAROMA’s total revenue.

The programme has over 600,000 members and the email notifying customers they would be receiving loyalty points had an open rate of over 65% and a click-through rate of over 20%.