CASE STUDY
Hat Club delivers a 762x ROI and sees LTV for loyalty members increase by 127% with Bubblehouse
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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.
Results
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.
