A couple years ago Rivo asked if I would be open to testing different messaging other than points. We decided to use cash back in the form of store credit. We really never looked back because we discovered that our customers don't want to open a calculator to figure out what they've earned. They want to see $20 in their account and know exactly what that means.
A product people love, without a system to reward them
Swoveralls makes sweatpant overalls. One product category, executed with an obsessive commitment to comfort. The brand has built a genuine community around the idea that you shouldn't have to choose between looking put-together and feeling like you're wearing pajamas.
But having a loyal following and having a loyalty program are two very different things.
When Swoveralls started exploring loyalty programs, they ran into a familiar problem. Most points systems feel disconnected from reality. Customers earn points, but the actual value isn't obvious. Translating those points into dollars takes effort, and that friction kills engagement fast.
For a brand built on simplicity and comfort, asking customers to decode a points system didn't feel right.
High-value customers with no way to recognize them
Swoveralls had a growing segment of high-value customers. People buying multiple pairs, gifting them to friends, and talking about the brand organically online. Despite that behavior, there was no way to recognize them differently from someone who had only made a single purchase.
What they needed was a program that felt as simple and intuitive as the product itself. Something where the value was obvious the moment you saw it.
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The Comfort Coach tiers happened pretty naturally. We already had these power buyers who owned five, six pairs and were telling everyone about us. We just needed a way to say hey, we see you, and here's free 2-day shipping for life because you're one of our people.
Cashback in real dollars
The biggest decision Swoveralls made was to eliminate points entirely and replace them with cashback in real dollars.
Every purchase earns store credit that's immediately understandable. Spend $100, get $10 back. There's nothing to translate or calculate. The value is clear, visible, and usable at any time. Base tier members earn 10% cashback on every order, and because the credit never expires, there's always a built-in reason to return.
That one shift fundamentally changed how customers interacted with the program. There was no need for education or explanation. Customers instantly understood what they were earning and how to use it.
Alongside cashback, Swoveralls introduced VIP tiers that feel native to the brand. Instead of generic names, members progress from Comfort Coach to Sr. Comfort Coach and eventually to Head Comfort Coach. The naming reinforces identity and community, rather than feeling like a standard loyalty ladder.
As customers move up, the benefits become meaningfully better. Cashback increases from 10% to 20%, birthday rewards grow, and shipping perks improve. At the highest tier, customers receive free two-day shipping on every order with no minimum. That perk becomes something they experience repeatedly, a recurring benefit rather than a one-time reward.
A strong first impression
Swoveralls made a deliberate decision to create a strong first impression. Every new member receives $20 in store credit immediately after signing up. On a brand with an average order value around $118, that's a meaningful incentive to engage right away.
That initial credit plays a critical role. It encourages customers to redeem early, which turns out to be the most important behavioral trigger in the entire program.
Referrals built on clarity and generosity
Referrals follow the same philosophy of clarity and generosity. Customers give $20 to a friend and receive $20 in store credit when that friend makes a purchase. The referred customer faces no minimum spend, making it easy to try the product, while the advocate reward is structured to maintain healthy economics.
Loyalty at checkout
After upgrading to Shopify Plus, Swoveralls extended the loyalty experience directly into checkout using Rivo's checkout extensions. Customers can now see their store credit balance and apply it instantly without leaving the page. This removes a major friction point and tightens the loop between earning and redeeming.
First redemption changes everything
The most important insight from the program is what happens at the moment of first redemption.
Customers who have redeemed store credit at least once show a 52.4% repeat purchase rate. Non-members sit at just 10.5%. Even customers who have joined the program but haven't redeemed yet perform better, with a 22.5% repeat rate. But something changes once a customer actually uses their credit. The program shifts from something they signed up for into something they actively participate in.
The same pattern shows up in lifetime value. Customers who redeem average $192.30 in lifetime value, compared to $128.06 for non-members. The difference isn't coming from larger orders. In fact, redeemers tend to have slightly lower average order values because they're applying store credit. The real driver is frequency. Redeemers come back more often, averaging nearly twice as many orders.
This creates a compounding effect. Customers make a purchase, earn cashback, return to use it, and then earn more on that order. The cycle continues, reinforcing itself over time.
When given multiple reward options, customers overwhelmingly choose store credit. It has been redeemed thousands of times, while traditional fixed-value coupons see minimal usage. The flexibility and sense of ownership make it far more compelling. Customers treat it as money they've already earned, not a discount they've been given.
Loyalty redeemers saw a repeat purchase rate five times higher than non-members, and their lifetime value came in 50% higher overall. The program has grown to more than 7,100 members spread across three VIP tiers.
A few of the features Swoveralls uses at Rivo
Swoveralls built their program using Rivo's store credit loyalty system, VIP tiers, and referral program, alongside birthday rewards, social earning actions, SMS and review incentives, checkout extensions, and customer accounts.
