Redefining customer engagement with automated loyalty campaigns
increase in average customer spending
campaign conversion rate
Cellar One is an exclusive invitation-only online store for Australia’s second-largest wine company, Accolade Wines. The C1VIP club is available to a small group of the most loyal and discerning purchasing VIP members, giving them access to the best and most exclusive wines from Accolade’s winery cellars.
The Cellar One brand thrives on customer retention and rewarding customer loyalty. To enhance the shopping experience and increase customer engagement, Cellar One created the C1VIP club to reward the most loyal and valuable customers with special offers and giving them access to the most exclusive wines. C1VIP runs monthly campaigns and constantly focuses on improvising but adding new members to this group has been a manual process. Continuing on the path, the team wanted to create an automated campaign to identify new customers who have added value to Cellar One through repeat purchases and reward them through C1VIP membership. To meet this objective, Cellar One teamed up with dotdigital to launch its C1VIP invitation program in June 2021.
The aim was to identify and target top-tier buyers who were not part of the C1VIP club and invite them to join by implementing an advanced segmentationprocess. As a result, the team integrated dotdigital’s recency, frequency, and monetary (RFM) value model tool to help identify their champion customers. The RFM deployment helped Cellar One analyze the data and segment customers into different personas, using spending behavior as a crucial parameter.
“We strongly believe in rewarding our loyal customers and converting them into brand advocates. Inviting them to join the C1VIP club is our way of letting them know that they have achieved elite status with our brand, and this makes them feel special,” said Emma Roach, Business Development Manager at Cellar One. “With dotdigital’s RFM tool, we were able to segment our customers and identify the frequent spenders who are likely to spend again, inviting them to join the exclusive VIP club.”
The campaign saw excellent customer engagement, with a large segment of the targeted customers purchasing wines featured only in the VIP area and on sale. While several customers added an extra item to the cart, others that didn’t shop from the VIP sale did go through to the main website and chose something else. “The C1VIP invitation program has been a huge success throughout, yielding great results. We targeted both existing and new C1VIP customers through tailored emails that reflected their specific interests with an exclusive 20% discount. The exceptional results that we have achieved from this particular campaign are first of its kind and a clear example of the effectiveness of our loyalty program,” added Emma.
The campaign achieved a 72% click-to-open rate, saw an increase of 30% to the high-value customers within the C1VIP club, and witnessed a 58% increase in average customer spending. Overall, the C1VIP invitation program recorded an 80% conversion rate and almost $15,000 in revenue, of which 35% came from new C1VIPs. The brand is looking forward to using the retargeting functionalityfor optimized campaigns in the coming months.