Evine will introduce a customer loyalty program
January 3, 2017 05:35 PM
Evine Live Inc. is hoping to drive repeat business with a forthcoming customer loyalty program.
Between 50% and 75% of the TV and web merchant’s shoppers are returning customers, says Nicole Ostoya, executive vice president and chief marketing officer at Evine. That group of shoppers spends more per order and has a much greater lifetime value than one-time shoppers, she says without revealing specifics.
To drive more loyalty and entice more repeat purchases, Evine plans to launch a customer loyalty program during the third quarter of this year, Ostoya says.
Initially, the program will be available only to consumers who also have Evine’s branded credit card, a number which is in the millions and a high double-digit percentage of Evine’s customers, she says.
The retailer has offered shoppers a credit card for eight years via financial services company Synchrony Financial. Evine credit card users help the e-retailer’s bottom line, as those purchases come with a reduced bank processing fee, she says. Plus, the card serves as an extension of the brand to keep Evine top of mind and to further build shopper loyalty. Evine hopes to get 3% to 4% more Evine customers to sign up for and use the card with the new loyalty program, Ostoya says.
Already, consumers with the retailer’s credit card receive exclusive free shipping days and discounts. The customer loyalty program will offer shoppers more of these incentives and allow members to qualify for bigger discounts, she says. Ostoya likened it to an airline frequent-flier miles program, in which the more a consumer spends, the better seats she may qualify for.
“We’ve been wanting to do (a loyalty program) for a long time, and we finally felt like we came up with a manageable structure that is enticing,” says Ostoya, who joined Evine in February 2016 and was tasked with creating a robust marketing program. “In years past, the precedent was we didn’t need to invest in marketing because we are in 88 million homes, 24/7,” Ostoya says. “I’m really looking to change this.”
Evine is testing ads for the loyalty program on billboards and TV. The retailer also is updating its graphics, such as product images, and branding on its website, which has resulted in an uptick in repeat customers and a decrease in the number of customers who buy something just once, Ostoya says.
Ostoya estimates that half of Evine.com’s traffic stems from consumers who are watching the shopping channel on TV, and browsing on a smartphone, tablet or laptop. This makes sense, as 75% of purchases on Evine.com are for products that aired that day on the show, Ostoya says.
The web merchant’s mobile sales are increasing, Ostoya says. Roughly half of Evine’s sales are made online and the other half are via a consumer calling on the telephone after seeing a product on TV, but online sales are rising at a faster clip than telephone sales, she says.
“It’s a positive change,” Ostoya says about the shift toward e-commerce. “We can handle more transactions more quickly and we’re able to reinforce information.” For example, a viewer may miss something about the product that the host says while on TV. To ensure consumers can access all product information available, Evine publishes the show on its website so consumers can go back to catch any missed details.
Online video product demonstrations are a large part of what fosters customer loyalty, Ostoya says, in part because the person who created the product often is doing the demonstration. With a video, the product creator can explain how it works, her inspiration behind the design and show potential buyers how to use the item.
Evine, formerly known as Shop HQ, is No. 115 in the Internet Retailer 2016 Top 500 Guide. Its 2015 web sales totaled $318.6 million.