How Leonisa, a Global Brand, Maximized Customer Retention & AOV through a Loyalty Program

, How Leonisa, a Global Brand, Maximized Customer Retention & AOV through a Loyalty Program

According to KPMG, 75% of consumers will favor a brand if there is a loyalty program. Brands today carefully craft their rewards programs to engage customers at multiple touchpoints and provide them a unique experience. This leads to increased customer lifetime value and higher retention rate.

In this webinar, Victor Yacaman, Head of Ecommerce and Digital Marketing and Sebastian Gonzalez, Marketing Manager at Leonisa, share insights on how Zinrelo’s loyalty rewards program led to increased revenues and higher average order value (AOV). The blog post includes the recording and presentation for the webinar and highlights the strategies that helped Leonisa achieve 37% higher customer retention through a loyalty program!

Watch the webinar recording here:

See the webinar presentation:

Key highlights from the webinar:

Started in 1956, Leonisa has over 60 years of experience and creates high-tech innerwear that offers comfort, shape, durability, and built-in confidence to its customers. All the products are manufactured in-house and Leonisa uses sustainable products to reduce the carbon footprint. Leonisa deployed Zinrelo’s loyalty rewards program across its 14 different websites in multiple geographies, across varied languages and currencies. The loyalty program engages with Leonisa’s customers at multiple touchpoints by rewarding points for a plethora of activities like referrals, social shares, account creation, etc. Further, Leonisa gamified their loyalty program by adding interesting tiers and offered different rewards catering to various customer segments and preferences, leading to exclusivity and genuine affinity towards the brand.

Leonisa experience:

Why were you looking for a loyalty program?.

  • Leonisa, a global brand had very clear objectives when they were looking for a loyalty program.
  • They wanted to engage with their customers, boost retention and accelerate revenues.
  • Another important consideration was gamification by setting up tiers that would make it exciting for the customers and further strengthen their customer relationship.
  • Lastly, personalization in the loyalty program was important for them to enhance customer retention and improve revenues.

Why did you choose Zinrelo?

  • Zinrelo had all the features and functionalities Leonisa was looking for, and more!
  • The loyalty program offered benefits for every tier, various activities for customers to earn points, flexible rewards, design, etc.
  • The inherent customizability within the platform made the program seem like an extension of the website. Leonisa could create the exact UX they wanted.
  • Zinrelo gave Leonisa the flexibility to set up different programs for the unique needs of the various countries with appropriate language/program design configurations.

Key Features of Leonisa Premium Perks – Reward Program

  • Explainer page
    Leonisa has created an appealing and truly informational user-friendly explainer page for its customers that highlights the key aspects of the loyalty program – how to earn points, rewards, tier benefits etc. The page serves as a motivation for Leonisa’s customers to join the program and avail the exciting perks it offers.
  • 360-degree engagement
    Leonisa Premium Perks – Reward Program is a combination of different flavors of loyalty. Leonisa not only rewards its customers for purchases but also for other activities like referrals, social shares on Pinterest, Facebook, Twitter, Instagram, account creation, birthdays, etc. The referrals activity is a hit with Leonisa as it drives more customers to the site. Every loyalty member is assigned a unique referral link to be shared with their friends and family, and upon the first purchase of the friend, they receive 50% of the points earned by the friend. The members are thus incentivized to ensure that the friends buy more! Another activity that is a win-win for both Leonisa and its customers is social sharing, and the members do not shy away from spreading their love on social media.
  • Rewards
    Leonisa also offers an interesting and diverse range of rewards, where customers can redeem points and choose from a plethora of options. In this aspect, the Premium Perks program truly offers an immersive experience. There are discount options available in exchange of points, as well as a diverse range of products catering to different customer segments and tastes – from lingerie for the women to boxers for men, with swimwear and shapewear thrown in for good measure! These rewards present loyalty members with the “hook” to earn more points, thereby increasing retention, engagement and repeat purchases.
  • Tiers
    Leonisa truly engages its customers with a tiered loyalty program. They offer intriguing tier names that resonate with the overall brand identity, showcasing how Zinrelo can seamlessly blend the program with the larger branding. As the members move up the tiers, the rewards get sweeter offering an aspirational value.
    – Insider: Purchase of 0-$69
    – Friend: Purchases of $70-$139 (15% off sitewide)
    – Confidant: Purchases of $140-$249 (20% off sitewide)
    – Soulmate: Purchases of $250 or more (25% off sitewide)
  • User-friendly loyalty dashboard
    Leonisa’s interactive loyalty dashboard is very intuitive and easy to navigate which offers a fulfilling experience for their customers. Customers can view their past points earned and redemption history under the “activity” tab. The dashboard also highlights the points that are soon reaching an expiration stage along with the due date which compels customers to redeem them or earn more – both of which lead to engagement. Furthermore, ways to earn more points and reward options are visible as well in the dashboard.

Why was the program a success? What worked?

  • Contextual program design – Zinrelo helped in Leonisa’s program structure by analyzing their historical purchase data and understanding the business objectives. For every country, Zinrelo worked with Leonisa and tailored the program according to the data and made it contextual to the local consumers. This ensured Leonisa maximized its chances of success.
  • Ease of integrations – Leonisa has a very capable technical team, and the Zinrelo team was very helpful throughout the entire journey. Although Leonisa had a custom-built platform, the integration was straightforward, thanks to the API-based architecture of Zinrelo. This year Leonisa moved to Shopify, and the migration was seamless, thanks to Zinrelo’s plugin!
  • Flexibility & Customizability – The key to Leonisa’s success is the unlimited flexibility Zinrelo’s loyalty rewards software offers. Leonisa could change the structure, language, tiers, rewards, activities etc. for its different country-specific websites and set up a variety of actions and rewards, etc.
  • Ease of use – Another factor that attributed to Leonisa’s success is the ease of use. Not only was it very easy for the customers to use the program, but also easy for the backend admins to navigate and manage.
  • White-Glove service – The service offered by Zinrelo was the icing on the cake for Leonisa. Leonisa constantly got more from Zinrelo at every step of the journey, and the dedicated customer success manager (CSM) was always available for guidance, consultation, best practices, and course correction.
  • Robust marketing strategy with social proof – To enhance the brand’s loyalty program powered by Zinrelo, Leonisa wanted to ensure community content was leveraged across the brand’s most impactful eCommerce channels. Leonisa used Pixlee TurnTo to collect, curate, and publish community content. From social media to on-site displays, Pixlee TurnTo helped Leonisa easily manage and showcase content from influencers, brand ambassadors, and everyday customers. Utilizing Pixlee TurnTo alongside Zinrelo gave Leonisa a unique advantage in building a robust marketing strategy rich with social proof.

Key results

  • Customers who participate in the loyalty program have a 37% higher retention rate.
  • Loyalty members contribute 4X more repeat revenue compared to others.
  • Engaged members have a 180% higher customer lifetime value (CLV) than non-engaged members.
  • 15% of the engaged members contribute 33.5% of the revenue.
  • Almost 30,000 users enrolled in the program in just a year and a half.
  • The average order value (AOV) of members is 12.5% higher than non-members.
  • More than 10,000 emails are sent per month regarding the loyalty program. It is automatic, seamless, and keeps the customers updated on their points, rewards, etc.
  • Qualitative benefits – better customer engagement, reduction in customer support requests, better coverage on social media, etc.

Excerpts from the Q & A section of the webinar

Q: How did you determine the tiers and rewards – especially the payback??
A: Sebastian Gonzalez, Leonisa – We’ve tried to make sure there is enough hook for points earning, and that rewards are attractive to all customers. Zinrelo helped us determining the payback and incorporated our ideas as well. It was a collaborative effort and a huge success.

Q: What other benefits can we get from a loyalty program apart from the numbers?
A: Victor Yacaman, Leonisa – We have benefited in other ways as well but that’s difficult to quantify.
For example, there is a much better overall customer experience and delight – a bit of an emotional experience for our customers, and that’s due to not only the program but the design and perks. Our conversion of website visitors to customers have increased as well. In addition to increased visitors, we have more traction on social media, growth in advocacy and referrals.