Why 23.37% of Patchology customers make second purchases
Over the past year, Patchology has quickly become one of the Shopify's top performing Skincare retailers because they not only have great products but also because they have a loyal customer base. What makes Patchology so different than the hundreds of other Skincare sellers on Shopify?
1. Quality, affordable products that stand on their own.
2. A loyalty program that is accessible, inspirational, and creates incentives for one-time buyers to become long-term subscribers.
When Patchology launched in 2018, they set out with one motto, "Self-care isn’t selfish. In fact, it’s exactly what you deserve". Using this messaging and some revolutionary skin-care technology, they built a strong following on Instagram. But, as many DTC sellers have experienced since the pandemic, reaching your owned audience isn't guaranteed, and social ad costs are Skyrocketing. Seeing how this was impacting their bottom line, the team at Patchology asked themselves, "How do we bring some self-care into our business?" That's when they realized they needed to create a rewards program that incentivized one-time shoppers to become repeat buyers. Or better yet, subscribers!
Turning an impulse buy into a daily routine
Even though the online store had been consistently growing, In 2022, Patchology realized they needed to do something about their CAC/LTV ratio if they wanted to become the profit center they knew they were capable of becoming to do this, they needed to do two things:
1. Grow Lifetime Value (LTV) and engagement: Patchology needed a solution that would not only drive customer loyalty but also boost engagement and the amount of money each customer would spend over their life.
2. Reducing the cost to acquire new customers (CAC): Quickly skyrocketing social ad costs were eating into Patchology's profit margins, and the company needed to find a new way to reach customers in a cost-effective way.
A 23.37% repeat purchase rate in 4 months
Knowing that their product and ad costs were nearly optimized,Patchology realized they were going to have to focus on AOV and repeat purchase rate to grow their cashflow. That's when they learned about Rivo loyalty.
A custom loyalty and growth program
Rivo worked with the team to develop a thorough loyalty program that includes a points-based rewards system to drive repeated purchases and a unique referrals program to help them reach the friends of their most loyal customers, a highly qualified new customer source that doesn't require any ad spend!
The PatchLoyalty Points Program
Rivo's platform allowed Patchology to create a customized, tier-based loyalty program that rewarded customers for their purchases, referrals, and social media engagement. The program encouraged customers to earn points by completing simple tasks like making a purchase, leaving a review, or sharing content on social.
Patchology also utilized Rivo's enterprise referral system to leverage their existing customer base and generate new leads at a lower cost.The referral program incentivized customers to share their love forPatchology's products with friends, family, and social media followers, in return for exclusive rewards and benefits.