Loyalty evolution as Revolution Beauty’s new rewards programme boosts CLV

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Revolution Beauty, one of the world’s fastest growing beauty brands, has increased purchase frequency and higher average order values (AOV) with its new RevRewards loyalty programme in partnership with digital agency, Astound Commerce, and e-commerce marketing platform, Yotpo.

Launched in 2014, Revolution Beauty is a British company that creates cosmetics, skincare and haircare products for a diverse customer base. Its market leading position centres around creating high-quality products, based on customer feedback, faster than other brands and at affordable prices.

Originally conceived as an online-only business, Revolution Beauty also sells its products through several digital and retail partners globally.  In 2020, the retailer focused on developing its direct-to-consumer (D2C) channel further to build closer relationships with its customer base. 

“Strategically, we saw loyalty as an opportunity to bring consumers closer to the brand.  Prior to implementation, 75% of our customers were making single purchases and we wanted to increase repeat purchase by creating additional value when shopping with us directly,” commented Sally Minto, Digital Director at Revolution Beauty.

Revolution Beauty’s digital partner Astound Commerce, which had overseen the brand’s replatforming on to Salesforce Commerce Cloud, implemented Yotpo, one of its strategic partners for online loyalty schemes, to power the new rewards programme, RevRewards.

 RevRewards allowed the beauty brand to move away from a traditional ‘points for purchases’ loyalty programme.  Instead, it offered customers the chance to earn rewards for other positive endorsements of the Revolution Beauty brand, such as referring friends, interacting with the brand online and via social media or leaving a review about their purchases.  It also included a tiered system that let customers unlock greater, higher value rewards as they moved up the different loyalty levels, encouraging brand advocacy.

The programme, which was collaboratively designed by Revolution Beauty and Yotpo, was designed to drive two specific outcomes: purchase frequency and higher AOV purchases, as Minto explained.

“The programme encourages more frequent purchases, and higher value purchase over the customer lifetime, while the referral programme helps lower overall customer acquisition costs while bringing in new customers who are more inclined towards loyalty.  Once we began promoting the programme with social and email marketing the participation increased and the metrics speak to the obvious success of the programme.”

To date, the RevRewards programme has increased AOV by +44%, delivering an additional £174 lifetime revenue per customer – an impressive uplift of 378%.  Additionally, the average purchase rate has increased by 234% and the overall the programme has returned an 8X return on investment.

Terry Hunter, CEO at Astound Commerce, commented: “While it may sound like a cliché, the customer relationship really does sit at the heart of the Revolution Beauty business – from playing a role in shaping new product development to how the businesses markets itself and how it builds and sustains its community of loyal customers through social engagement.  With rising customer acquisition costs and an increasingly dispersed buying audience, Revolution Beauty are a great example of the importance and business benefits of investing in your customer to realise the holy grail of increased revenue and lifetime value.”