Case Study: How Xhibition Increased AOV by 72% with Wallet Passes
Challenge
Xhibition, a global high-end streetwear brand, that faces tight competition in the apparel market. With many retail locations and an online presence, their primary concern is maintaining customer engagement and retention across channels.
We sat down with Christopher Ramos, Creative Director at Xhibition, to learn how they leveraged custom wallet passes to level up their brand loyalty.
Strategy
Xhibition launched a comprehensive loyalty program centered around Apple and Google Wallet passes, leaning on cash back incentives and a sense of urgency. Here's how they rolled it out:
Expiring Store Credit Campaign: Xhibition kicked off their loyalty program during the Black Friday Cyber Monday (BFCM) period with a gifting campaign. Customers received rewards based on their spending from the previous year, creating a sense of appreciation and encouraging repeat purchases.
Conversion to Store Credit: Recognizing the need for simplicity and tangible rewards, Xhibition converted their loyalty points into store credit dollar values. This not only streamlined the loyalty process but also provided customers with clear benefits they could understand and utilize.
Urgency: To drive urgency and boost sales, Xhibition implemented expiration dates on their rewards. This encouraged customers to take action and redeem their rewards within a specified time frame, driving better engagement and increasing sales.
Welcome Bonus: Xhibition offered a welcome bonus of $20 to incentivize customers to join the loyalty program. This initial reward served as a hook to attract new members and kickstart their engagement with the brand.
Tiered Rewards System: Xhibition implemented a tiered rewards system based on customer spending. Customers were segmented into three tiers (Visitor, Insider, and VIP), each offering different levels of cashback rewards based on their spending. This not only encouraged customers to spend more to unlock higher tiers but also rewarded their most loyal shoppers.
“We saw a 72% increase in AOV amongst customers with a wallet pass. Novel made it so easy for us to set up expiring store credit and store credit given back as a percentage of spend.”
Results
Increased Customer Engagement: The implementation of store credit rather than points led to a massive increase in customer engagement across both online and in-store. Customers resonated more with store credit than points which led to more redemptions, resulting in higher engagement rates.
Improved Retention: By offering tangible rewards and incentives, Xhibition saw a nice improvement in customer retention rates. The tiered rewards system, in particular, encouraged customers to remain loyal to the brand with similar spending trends.
AOV Boost: The sense of exclusivity and the opportunity to earn store credit rewards based on spending tiers motivated customers to increase their average order value. This contributed to a 72% increase in AOV amongst pass holders for Xhibition, boosting overall revenue.
Increase in Total Sales: The BFCM gifting campaign, coupled with the launch of the loyalty program, resulted in 42% total sales from wallet pass holders. Customers were enticed by the prospect of earning rewards based on their previous spending, leading to a surge in purchases.
Outcome
Overall, the strategic implementation of Apple and Google Wallet passes for the omnichannel loyalty program proved to be highly successful for Xhibition, driving customer engagement, retention, and sales across their retail channels.
