- Customer lifetime value is key to survival in today’s retail environment.
- Retailers can influence their future value by offering customers special deals and rewards that drive both purchases and loyalty.
- Honey rewards consumers at every stage of their shopping journey, from product discovery to checkout.
Today, it’s not enough to build a brand and expect customers to engage because of the excellent product selection. Finding and retaining customers in today’s increasingly competitive e-commerce environment requires merchants to be highly targeted and relevant at all stages of a shopper’s lifecycle. Sounds great, but how can retailers do this? By offering personalized offers tailored to the needs of its customers.
“The winning companies have a customer-centric approach,” said Jason Test, vice president of digital and in-store commerce at PayPal, who uses the Honey platform to help businesses convert and retain customers by offering highly relevant offers. “A loyalty program is successful when it results in retention, not customer acquisition. In addition to providing a superior shopping experience, the hope with loyalty programs is to turn a one-time customer into a regular buyer.”
Consider this: New customer acquisition costs have increased by almost 50% in the last 5 years. Because not all marketing teams have a free-flowing budget to prioritize all phases of the consumer lifecycle, Honey helps organizations reach relevant customers at more stages of their shopping journey.
An example of this is Princess Polly, an online shopping boutique in Australia and the USA. Princess Polly has partnered with Honey and a leading YouTube influencer to help increase sales volume and increase revenue. As part of the 10-day campaign, the company saw revenue growth of 41% in Australia and 36% in the US.
“Our target audience is Gen Z discounters,” said Kim Zorn, Princess Polly’s global director of performance. Users can be overwhelmed and frustrated when browsing hundreds of unverified codes on coupon sites. Zorn found that Honey fixed this issue for them by offering discount codes valid at checkout. “It keeps the customer on the page, automatically applies the discount code and therefore increases conversion rates,” he added.
How does honey work?
When a customer first starts browsing for products, Honey searches the internet for valid promo codes to help people save money at no cost. Merchants can take this a step further and offer their products on Honey’s shopping discovery site, so existing Honey customers can easily check out discounted items as well.
Ready-to-buy customers receive an automatically applied promo code with additional limited-time offers to encourage efficient decision making and reduce cart abandonment.
Welcoming customers where they are and reassuring them that they’re getting the best deal available reduces shoppers’ need to look elsewhere. Data from Honey has helped businesses using the tool reduce cross-site comparison shopping by 11% and increase new customer repurchase rate by 38%. This reduces friction in shopping and helps increase the customer’s trust and loyalty to the brand they are buying from.
“PayPal and Honey have the unique ability to help retailers reacquire and convert ‘lost shoppers’ who show high intent but leave the website without making a purchase,” the test said, adding that it leverages shopping tools like rewards and Honey. Offers can help PayPal retailers identify, engage and convert leads and convert them into loyal customers. “These tools can also assist with personalization and geo-targeting, helping brands talk directly to their buyers to stand out in a sea of marketing.”
Increasing the value of affiliate marketing programs
Beyond offering discount codes and rewards, Honey helps merchants get more value from their affiliate marketing programs. Data from Influencer and Heinz Marketing shows businesses with referrals have a nearly 70% higher conversion rate.
“Affiliate marketing helps them reach customers online where they already feel affinity,” the test said. People are more likely to buy a product if it recommends their favorite influencer or a favorite magazine. “Affiliate marketing represents both relevance and trust for shoppers.” A rewards solution (similar to the one offered by Honey) also provides a positive experience at every stage of the buyer journey, increasing the likelihood of users making a purchase and returning.
Such programs can encourage reluctant shoppers to finally go ahead and buy because rewards and deals are a highly emotional trigger. In fact, 62% of Americans told Honey they had a “fear of missing out” when they missed a deal offered to them in the Consumer Shopping Behavior Study.
Also, these deals seem to reduce buyer’s regret, as 67% of respondents said they felt less guilty about purchasing when they found a deal or coupon. This may be one reason why Honey customers spend 47% more on average order value when integrated with affiliates.*
Increase customer loyalty and increased profits with Honey
Honey creates positive results for merchants, affiliate marketers and buyers.
“Honey has increased the ROI of our affiliate program by 14%, generating one of the highest ROIs in the performance department,” Zorn said.
From letting merchants control the discount percentage to offer lucrative deals, to rewarding shoppers with Honey Gold points that can be redeemed for cash, gift cards or shopping credit, tools like Honey make both seller’s and buyer’s journey more efficient and rewarding.
Find out how Honey can help increase your business and customer loyalty.
*Netfluential was commissioned by PayPal in April 2021. Netfluential conducted an Online consumer survey of 1,000 US adult online shoppers (500 Honey Users, 500 Non Honey users) in April 2021.
This post was created by Insider Studios with PayPal.