I'm a runner and for the past few years I've only worn one brand of shoes, Luna Sandals.
I've bought five pairs of their sandals over the years, worth probably $500 or so.
The company is also headed up by a character, Barefoot Ted, who seems like a great guy even if he's a bit strange at times.
Luna Sandals has a great product, a great figurehead, a small and local-based manufacturing business in Seattle, and a community of runners who tout the benefits and value of their product. Everything that a good modern company should have.
But until very recently they've been doing almost nothing for their repeat customers.
Customers who would wear and use the product everyday.
Who'd answer questions and counter objections by the very vocal running community ("Do you actually run in those?").
Customers who would come back every year or so and buy another pair to replace a worn out set.
They have a monthly newsletter that includes sales, stories, and other news. But that went out to anyone who wanted it: customers, potential customers, Joe Random who put his name into a text box on the website and forgot all about running after he quit his New Year resolution.
Here we have a small business who have very motivated customers, buying and rebuying $100 products, evangelizing the product to other customers (sometimes to groups of 100s of people during races), and the customers don't get any additional benefit.
Luckily, that's not the end of the story.
Recently they migrated from their old ecommerce app to Shopify and have since put in place a very basic customer rewards system. Now for every $300 someone spends they get $50 off (which would be a shoe at half price every three years for me). And they have a referral program so when I refer someone else who makes a purchase, I get $3-4 off.
Simple. Effective. And it rewards the behavior their customers were already doing.
Just think. If your Average Order Value was $100 and you could get customers for life who would regularly spend $100 per year... what would you do? Would putting in place a few simple marketing campaigns make sense? Would you add a rewards/referral program?
If you use the analysis from Repeat Customer Insights you'll be able to learn if a rewards campaign like this makes financial sense.
Eric Davis
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