Hat Club delivers a 762x ROI and sees LTV for loyalty members increase by 127% with Bubblehouse
What we've done
Hat Club revamped its loyalty program with Bubblehouse, achieving a 762× return on investment. Key outcomes include 48% of digital revenue from loyalty members, a 52% redemption rate, and a 127% increase in lifetime value (LTV) compared to non-loyalty members.
Previously using Yotpo, Hat Club sought a more engaging loyalty experience. By integrating Bubblehouse, they introduced features like tiered rewards, real-time point tracking, and personalized messaging. This transformation led to 48% of digital revenue from loyalty members, a 52% redemption rate, and a 127% increase in LTV compared to non-loyalty members.
Hatclub
Hat Club is a specialty headwear and accessory merchandiser based in Arizona. Hat Club offers thousands of licensed brands to meet the desires of sports fans, enthusiasts, fashion icons, and more with their favorite hats.
Hat Club was previously on Yotpo and struggling with a program that had not been updated or modernized in years. The previous program only had points accrual and redemption, with no more engaging features to help make the loyalty program more attractive and keep people as interested as possible.
The only way you could earn points on the Yotpo program was spending, and engagement or brand activities were not accounted for at all. This resulted in longer purchase cycles since people could not earn points through engagement and rather only spending, which resulted in more widely varying purchasing frequency, which Hat Club wanted to improve.
Hat Club therefore felt that they needed to give their program more love and not just maintain the status quo of a simple points program, and therefore turned to Bubblehouse for help revamping what loyalty means for their consumers.
Solutions
Main takeaways
With the help of Bubblehouse, Hat Club started by expanding how you could earn points including activities like following on socials, signing up for SMS / birthday, completing a second purchase, and more.
Bubblehouse and Hat Club improved on their points program to include additional ways to earn points such as following on socials, signing up for SMS / birthday, completing a second purchase, and more
Bubblehouse and Hat Club came up with 6 gamified achievements to incentivize longer term purchase behavior, including rewarding for purchasing from 3 different teams, from purchasing 2 silhouettes, 3 hats from the same team, and more
Bubblehouse and Hat Club put in a referrals program create a new revenue driving channel for the brand through existing customers
Bubblehouse and Hat Club enabled redemption of points on checkout for maximal loyalty ease of use for the customer
Additionally, to increase redemption rates, Bubblehouse and Hat Club also implemented a slider mechanism for points redemption, where customers could redeem any number of points they had rather than fixed increments, to maximize points flexibility for customers. Similarly, Bubblehouse implemented the ability to redeem points on checkout directly for Hat Club to ensure optimal ease of use for customers to redeem points during their usual customer journey.
Achievements
Gamified loyalty
Bubblehouse and Hat Club also worked together to create 6 unique and gamified achievements that customers could complete to earn additional rewards. These achievements were:
Purchasing from 3 different teams
Purchasing from 2 silhouettes
Purchasing 2 different A frames
Purchasing 5 items from the Hat Care collection
Purchasing 3 hats from the same team
Purchasing 1 hat from all 4 major sports leagues.
The Results
These metrics have resulted in Hat Club seeing a 762x loyalty ROI within the first four months of launch, and further interest in seeing how else Hat Club can further leverage Bubblehouse to further expand loyalty penetration to drive higher repeat revenue, retention, and LTV.
Main takeaways
Since implementing a loyalty and referrals program with Bubblehouse, Hat Club has seen a tremendous boost across all its key loyalty success metrics. To start, Hat Club saw 48% of its digital revenue driven through loyalty members, which means loyalty was a significant contributor to almost half of all their purchases. This is further emphasized by the stark 52% redemption rate the Hat Club is seeing for its points, highlighting how important points are to customers executing their purchases on the site.
Hat Club also saw a 127% higher LTV compared to non loyalty members, as well as a 105% higher number of purchases than non loyalty members. This means that Hat Club effectively saw loyalty help drive significantly more than 2x the non loyalty participating customer value, highlighting the importance of loyalty contributing to higher purchase frequency and customer spend.
Schedule a call today to learn how Bubblehouse can transform your retention strategy into a scalable and impactful loyalty system.