Tassel gained a 15% Conversion Rate and boosted Customer retention by 40% with Store Credit as Cashback and Loyalty program

OVERVIEW

TasselsShoes.com is a leading footwear retailer offering a curated selection of luxury shoes both in-store and online. The brand is known for its premium products and customer-centric approach. TasselsShoes.com operates using Heartland Retail POS in its physical stores and Shopify as its eCommerce platform, giving customers a seamless omnichannel shopping experience.

CHALLENGE

TasselsShoes.com wanted to enhance its omnichannel capabilities with a comprehensive store credit, loyalty reward, and gift card solution that would integrate across both physical and online stores. The company also needed a streamlined way to offer store credit for refunds, a feature that would allow them to retain more value from returns by encouraging future purchases.

In addition, TasselsShoes.com was looking to upgrade its SMS and email marketing capabilities. They aimed to transition from Slicktext to Klaviyo to improve customer communication, save costs, and enable more personalized, automated marketing efforts across channels.

The primary objectives were to:

  • Implement a unified store credit, gift card, and loyalty program system across Heartland POS and Shopify.

  • Offer store credit as a refund option to reduce refund loss and boost future sales.

  • Seamlessly integrate SMS and email marketing with Klaviyo to drive more engagement and personalization.

  • Grow key business metrics such as ARR, LTV, AOV, and repeat purchases.

Tassels Shoes

SOLUTION

Omnichannel Store Credit, Loyalty, Gift Cards & Klaviyo Integration

  1. Store Credit, Loyalty Rewards, and Gift Card System Integration:

    To address the need for a unified store credit, loyalty reward, and gift card system, TasselsShoes.com implemented a third-party solution designed to work across Heartland Retail POS and Shopify.

    • Store Credit for Refunds:

      • Instead of processing cash or card refunds, customers could opt to receive store credit, redeemable either online or in-store. This solution seamlessly integrated with both Heartland POS and Shopify, allowing store credits to be tracked in real-time across all channels.

      • This option reduced refund-related revenue losses by encouraging customers to stay within the brand ecosystem and make future purchases.

    • Loyalty Program:

      • A points-based loyalty system was introduced where customers earned points for purchases, referrals, or social media engagement. Points could be redeemed for discounts, exclusive offers, or store credit, making it easy for customers to participate both online and in-store.

      • TasselsShoes.com offered special incentives, such as double points during key seasons or birthdays, to keep customers engaged and rewarded.

    • Gift Cards:

      • Gift cards were integrated into the system, allowing customers to purchase, redeem, and track gift card balances across both platforms. This ensured a seamless customer experience whether they shopped in-store or online.

      • Automated notifications, powered by Klaviyo, reminded customers of unused gift cards or loyalty points, driving repeat purchases.

  2. Migration from Slicktext to Klaviyo for SMS and Email Marketing:

    TasselsShoes.com transitioned from Slicktext to Klaviyo, saving $12,000 annually on SMS and email marketing expenses while dramatically improving marketing capabilities.

    • Seamless Integration with Klaviyo:

      • Klaviyo’s integration with Shopify allowed for advanced customer segmentation, enabling personalized, data-driven email and SMS campaigns.

      • Heartland POS was also linked, ensuring that TasselsShoes.com could create unified marketing campaigns based on customer behavior, regardless of whether they shopped in-store or online.

    • Automated Email & SMS Campaigns:

      • TasselsShoes.com set up automated workflows for abandoned cart reminders, post-purchase follow-ups, loyalty point updates, and special promotions. These automated messages helped recover lost sales, remind customers of loyalty points or unused gift cards, and keep them engaged through personalized offers.

    • Personalized Customer Communication:

      • By leveraging Klaviyo’s deep segmentation, TasselsShoes.com was able to tailor messages based on customer preferences, purchase history, and interaction behavior. For instance, VIP customers received early access to new products, while high-spending customers were targeted with exclusive discounts.

  3. Promotion and Retargeting Campaigns:

    • “Spend $X, Get $Y” Campaigns:

      TasselsShoes.com ran frequent promotions where customers who spent a certain amount (e.g., $300) received store credit (e.g., $30) for future purchases. These campaigns were broadcast through Klaviyo’s SMS and email channels, ensuring maximum visibility and engagement.

    • Retargeting Unused Store Credit & Gift Cards:

      Klaviyo allowed TasselsShoes.com to send reminders to customers with unused store credit or gift cards. These nudges encouraged shoppers to return and spend, boosting repeat purchases.

Tassels Shoes

RESULT

  1. Significant Time and Cost Savings

    • $12,000 Saved with Klaviyo Migration:

      Moving from Slicktext to Klaviyo saved TasselsShoes.com $12,000 annually. The brand was able to achieve more personalized and automated communication with customers while reducing marketing expenses.

    • Reduction in Manual Work:

      The seamless integration between Shopify, Heartland POS, and Klaviyo saved significant time for the TasselsShoes.com team by automating marketing efforts and simplifying store credit, loyalty, and gift card management. This allowed the team to focus on more strategic initiatives rather than manual operational tasks.

  2. Growth in Key Metrics:

    • Increased Annual Recurring Revenue (ARR):

      The implementation of store credit for refunds, loyalty rewards, and frequent gift card promotions increased customer retention and spending. ARR grew by 15% as customers opted for store credit refunds and participated in promotions, returning to make additional purchases.

    • Higher Customer Lifetime Value (LTV):

      With loyalty points and store credits linked to customer profiles, TasselsShoes.com was able to engage customers more effectively. Personalized communication through Klaviyo also contributed to a 20% increase in LTV, as customers returned for more frequent purchases.

    • Boosted Average Order Value (AOV):

      Promotional campaigns like “Spend $X, Get $Y” and loyalty point redemptions encouraged customers to spend more to unlock rewards. As a result, AOV increased by 10% in the first six months of implementing the new system.

  3. Enhanced Customer Engagement and Repeat Purchases:

    • 20% Increase in Repeat Purchases:

      The combination of store credit refunds, loyalty rewards, and targeted SMS/email campaigns led to a 20% increase in repeat purchases. Customers felt more connected to the brand due to personalized communication and rewarding experiences.

    • Higher Customer Satisfaction:

      Customers appreciated the flexibility of choosing store credit for returns, the ease of using gift cards and loyalty points across both channels, and the personalized offers they received via SMS and email. Customer satisfaction scores increased by 18%, with many customers citing the convenience and rewards system as reasons for their loyalty.

  4. Fun and Engaging Shopping Experience:

    • Gamified Loyalty & Rewards:

      The loyalty program offered fun incentives such as double points on birthdays and exclusive early access to sales, creating excitement among customers. Combined with SMS and email reminders, TasselsShoes.com’s campaigns kept customers engaged and motivated to shop.

CONCLUSION

By integrating a unified store credit, loyalty reward, and gift card solution across Heartland Retail POS and Shopify, along with migrating to Klaviyo for email and SMS marketing, TasselsShoes.com was able to save $12,000 in marketing expenses, improve operational efficiency, and significantly boost key business metrics. The seamless experience of earning and redeeming rewards both online and in-store, combined with personalized communication, helped grow ARR, LTV, AOV, and repeat purchases, while ensuring customers had fun and engaging shopping experiences.