Is there a way to monetize my loyalty programme? Is my money well spent? These inquiries would undoubtedly be near the top of a Q&A I’d create for the most frequently asked questions about loyalty programmes, something I’ve been meaning to do for a while. And with good cause. Executives’ concerns are allayed by the 4-6x loyalty programme ROI, which also demonstrates that the idea is effective.

I’d like to share a case study about LuisaViaRoma, one of our most prosperous clients, to further clarify my perspective. After just three months, the company’s loyalty programme generated a 293% return on investment, and after two years, it had generated €16 million for the business.

Making Loyalty Luxurious

The idea that loyalty programmes and high-end clothing are incompatible is untrue. Like everyone else, wealthy customers want to be rewarded; they simply anticipate receiving more opulent service.

High churn and low purchase frequency are highly common problems that can be readily fixed with incentives, but luxury companies are frequently hesitant to implement loyalty programmes out of concern that it will devalue the brand’s reputation. The best method to keep VIP clients, though, is to offer incentives and prizes that reflect the brand’s commitment to high standards of design and quality.

The Motivation Behind LVR Privilege
In order to strengthen their relationship with their most valuable clients and reduce rising customer acquisition costs, LVR made the decision to launch a loyalty programme.

LVR initially set out to develop a straightforward earn-and-burn style programme with intriguing reward incentives and ample room for future expansion, one that was prepared for a quick global launch.

However, the organisation has always had higher aspirations: to alter consumer behaviour and identify the clientele with the greatest room for expansion.

The company had to overcome the following obstacles to achieve this:

Reduce prices to keep up with the competition without eroding their margin.
Enhance relevancy and introduce tailored email marketing to reduce client churn.

Results that surpass all expectations

LVR Privilege is currently accessible worldwide and has more than 1 million members. Following the second year of operation of the loyalty programme, LuisaViaRoma’s Privilege Program saw the following results:

Revenue increased further, reaching more than €16 million.
Reward expenses stayed constant and were capped at €1.1 million.
Retention rates sharply increased, quadrupling the outcomes from the prior year.
Additionally, the quantity of fresh website visits increased, reaching 3.8 million.

Additionally, the program’s performance went on to win other industry honours.

In the UK, LuisaViaRoma and Antavo won the “Best Email Marketing Campaign” category in the 2018 eCommerce Awards for Excellence.
The two businesses won the prestigious Drapers Digital Awards 2019 in the category of “Best Digital Customer Engagement & Retention Strategy” the following year.
awarded the esteemed Glossy Award Europe in the category of “Best Loyalty Program” in July 2019.

How to Develop a High Loyalty Program ROI

The most important lesson from LuisaViaRoma’s success should be that, if a premium fashion company can succeed in a sector where loyalty programmes are generally considered to be ineffective, then anyone can. At Antavo, we’ve observed that a carefully thought-out loyalty programme and concept may help both brands and retailers in a variety of industries.

Visit our case study library to read more about how we’ve assisted businesses in improving their KPIs. You’ll be astounded by how our previous clients have used a loyalty programme to achieve their corporate objectives. You should schedule a demo if you want to see our product in action.