Gwynn achieved a 30% increase in AOV & 6x ROI on their new Omnichannel loyalty & referral program

OVERVIEW

Gwynn’s of Mount Pleasant, a luxury retailer known for its exceptional fashion, fine jewelry, and personalized services, introduced a loyalty program aimed at rewarding its most loyal customers. The Avg. shopping cart value is $3,000. The "Gwynn's Bucks" program was designed to incentivize repeat purchases and enhance customer retention by offering exclusive rewards for high-value spending.

PROGRAM DETAILS

The Gwynn’s Bucks Loyalty Program rewards customers with a $200 store credit for every $2,000 spent within a calendar year. The rewards, called Gwynn’s Bucks, can be redeemed seamlessly both in-store and online, offering maximum convenience to customers. Key aspects of the program include:

• $200 Store Credit for Every $2,000 Spent:

  For every $2,000 spent, customers earn $200 in Gwynn’s Bucks.

• Flexibility:

  Points can be redeemed both online and in-store, allowing customers to choose how they prefer to shop.

• Luxurious Rewards:

  The store credit can be used for luxury fashion, fine jewelry, or any of the premium services that Gwynn’s is known for.

• Calendar Year Accumulation:

  Customers can accumulate spending over a full calendar year, which encourages continuous engagement with the brand.

CHALLENGES

1. Customer Retention:

   As a luxury retailer, maintaining high-value repeat customers was crucial to Gwynn’s business model.

2. Driving Repeat Purchases:

   Encouraging customers to make multiple purchases throughout the year, rather than one-off visits, was a priority.

3. Seamless Omnichannel Experience:

   Ensuring that the loyalty program could be easily used across both physical and online stores.

4. Maximizing ROI on Loyalty:

   The program needed to generate a tangible return on investment by increasing the average order value (AOV) and ensuring customer satisfaction.

SOLUTION

Integration of Gift Cards and Loyalty Program

Gwynn’s launched its Gwynn's Bucks Loyalty Program to provide substantial rewards for its highest-spending customers. By offering credits that could be used for future purchases, the program created a compelling incentive for customers to spend more, come back frequently, and engage across all shopping channels.

RESULT

1. Customer Acquisition & Retention:

   • The Gwynn's Bucks program helped attract high-value customers who were drawn to the tangible rewards of luxury shopping.

   • The store experienced a notable 5% increase in retention, repeat visits, and sustained loyalty, with many customers aiming to reach their next $2,000 milestone to unlock an additional $200 credit.

2. 30% Increase in Average Order Value (AOV):

   • The program significantly increased AOV, as customers were incentivized to meet or exceed the $2,000 spending threshold to earn their rewards.

   • Customers often added additional luxury items to their carts to maximize the benefits of the program.

3. 6X Return on Investment (ROI) on Loyalty:

   • The loyalty program produced a strong 6X ROI by both increasing customer lifetime value (LTV) and reducing churn.

   • Customers appreciated the exclusive nature of the rewards, leading to increased engagement and higher satisfaction with the brand.