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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.
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.
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.
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:
These achievements allow Hat Club’s customers to aim for longer term purchasing behavior incentivized by rewards, and encourages cross selling and higher 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.
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.
