United Colors of Benetton Personalized Product Cards and Increased Order Conversions by 10.3% Year-on-Year with Experimental Loyalty Program Tools

United Colors of Benetton, founded in 1965, is a world-famous chain of clothing stores from Italy.
Business scale. 
23 offline stores and online stores in the CIS
author
Ilya Turkin,
Manager of the United Colors of Benetton’s loyalty program
Goals
Increase customer lifetime value (LTV)
Attract new customers to the loyalty program
Solutions
Connect experimental loyalty program tools

IT stack. 

ERP, online store, Wallet app for iOS and Android, marketing automation platform, and loyalty program processing
Results
The customer’s LTV increased by 10.3% on a year-to-year basis

The number of loyalty program members has increased by 1.5 times
Noteworthy features
Benetton Loyalty Program members can utilize third-party bonus points from partners
The following case study is from Mindbox, the original brand behind Maestra’s technology
United Colors of Benetton has implemented dozens of marketing tools during its three years developing its loyalty program. In this article, we’ll be taking a look at some exciting marketing tools, screenshots, results and testimonials that feature the following:
  • Giuseppe’s Lamb Game;
  • Cascading campaign with push notifications in the Wallet app;
  • Aeroflot miles;
  • Bewearcy clothing recycling project.

Last year’s results

  • +10.3%
    Year-to-year growth of lifetime value (LTV) per customer
  • ×1.5%
    increase in the number of loyalty program members (up to 600,000)

Data from United Colors of Benetton’s internal reports in Power BI

Giuseppe’s Lamb Game

This game is only available to loyalty program members. It was developed on Hezzl, a platform that provides ready-to-play solutions to attract customers and increase sales. The game is quite simple: you need to move haystacks to help sheep find their way out of the pen. The faster a customer can do this, the more points they earn.
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Each round is time-limited, and the difficulty level is randomized for each player
The game is located on a separate page of the website, which uses an iFrame code, allowing UCoB to embed interactive media elements on this pafe. A nice feature is that the animation adapts to the screen size on mobile devices.
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A text message notifying the customer of successful gameplay and awarded points. This is the fastest communication channel. In the future, however, we plan to use emails and notifications in the customer’s account on the website.
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Judging by the open rate of 21.2%, loyalty program members are interested in the game

Results of “Giuseppe’s Lamb” game

  • $5.6
    earned for every $1 spent on the game
  • ×1.5
    higher order value from the playing customer segment
  • +$40
    higher LTV for playing customers
To confirm customer interest in the game, we conducted an A/B test, using the Next Best Action algorithm for segment selection. Half of the customers who were likely to place an order in the near future were sent an email with best-selling products, whereas the other half were sent an offer to play Giuseppe’s Lamb. Although we’ve not yet obtained a statistically reliable result, the click rate for emails with the game is notably higher: 1.9% vs. 1.5%.

Cascading campaigns with push notifications in the Wallet app

In the fall of 2020, the company’s marketers connected the Wallet app on iOS and Android as an additional source for new customers.
A year later, not only did Benetton start sending push messages in Wallet, but also transformed them into cascading campaigns. Cascading campaigns are a type of communication conducted through several channels where:
  • each subsequent message is sent only if the customer could not be contacted in any of the previous stages of the cascade sequence;
  • free email and push notifications are sent first, followed by paid notifications via an instant messenger and/or text message;
  • messages are stopped as soon as at least one message reaches a “Delivered” status or if the customer completes the target action.
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Push notifications from Benetton in Wallet. The app allows you to insert illustrations into messages

We connected Aeroflot bonus miles

The Aeroflot airline has an Aeroflot Bonus loyalty program, which allows you to save and redeem miles from the airline’s partners.
Benetton became one of these partners. In 2020, Aeroflot Bonus loyalty program members could earn miles for purchases at Benetton retail stores. In 2021, we added the option to collect and use miles when making purchases in the online store. You can use miles to pay up to 50% of the total purchase cost.
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Presentation of United Colors of Benetton on the Aeroflot Bonus website
According to the rules, customers cannot use points from Aeroflot and Benetton’s own loyalty program simultaneously. This restriction was taken into account on the platform. Now, when selecting one loyalty program on the website’s shopping cart checkout, the second one becomes inactive:
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Integration with the Bewearcy clothing recycling project

Bewearcy is a service where customers trade in old clothes that are in good condition in exchange for a promo code or bonus points that can be used from any partner associated with the program.
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Bewearcy allows you to trade in unwanted clothes in exchange for a promo code. Benetton, 12 Storeez, Charuel and other well-known brands are all program associates
Integration with Beawercy took three months. Points from other, external loyalty programs are converted into Benetton loyalty program points. The official launch of the project is scheduled for November — December 2021.

Our next step is to connect electronic receipts

Instead of paper receipts, customers will receive electronic ones by email, which will contain entry blocks for joining the loyalty program, information about promotions, an NPS survey and an opportunity to sign up for campaigns.
P. S. In this article we discussed the Loyalty program and Customer Data platform — CDP modules used by United Colors of Benetton. Learn more about these modules by following the links or by reaching out to us.