Soko Glam Used VIP Product Redemption to Inspire Customers

Industry

Health & Beauty
Platform & integrations

Shopify Plus
Challenge

Crafting a loyalty & referrals program that stands out in an industry where loyalty programs are the norm.
Solution

Creatively utilizing Yotpo's tiers functionality to create a one-of-a-kind experience for top shoppers.
Results

Within 6 months, over 170k program actions were taken including 12 redemptions per VIP shopper.

Husband and wife duo Charlotte and Dave Cho, co-founders of Soko Glam, brought the Korean beauty brand to life in 2012.

Company

Soko Glam launched in 2012 with the goal of helping people discover Korean skin care, beauty trends, and cosmetics. Now based in New York City, the Soko Glam team regularly travels to Seoul to scour the Korean skincare and makeup markets, consult industry experts, and meet tastemakers to bring back the best selection of Korean beauty products for curation on Soko Glam.

Yotpo handled the entire implementation process while maintaining flexibility and open lines of communication, allowing us to provide feedback and customize every detail of the program to our unique needs.

Justine Chan

Head of Biz Dev, Partnerships, and Ops

Return on Investment

Since Program Launch

Challenge

For big players in the cosmetics industry, a loyalty & referrals program is a necessity. As Soko Glam reached that next level, they were looking to implement a program that would help them not just blend in, but stand out.

Most loyalty & referrals programs make it easy for customers to earn points, but struggle to fully engage customers and earn widespread adoption. In fact, based on several studies of coupon usage, less than one hundredth of a percent of coupons offered by eCommerce businesses are ever redeemed. Why is this the case?

Sloppy program deployment and non-optimal incentives can hamper overall program effectiveness and leave customers uneducated and disinterested. Yotpo and Soko Glam worked together to create a deeply integrated solution that answers these problems and achieves high customer engagement.

20X

Higher Redemption Rate

For VIP Customers

Solution

The “Soko Rewards” program is built to be multifaceted and appealing to customers with various spending habits. Entry-level users earn points for every purchase which can be redeemed through their custom designed rewards page or directly at checkout.

This seems simple enough, but the true value of the program lies in capitalizing on exclusivity. Soko Glam does this through a VIP tiers system that offers incremental value to shoppers who get more and more involved in their loyalty & referrals program. By offering limited edition products that can only be purchased with points by VIP customers, Soko Glam creates a unique “VIP-only” experience that generates more value from their top-performing customers.

Results

Swell and Soko Glam used a highly collaborative and iterative implementation process to be sure that the final product was built specifically to cater to Soko Glam’s needs. The resulting custom-designed rewards page both complements Soko Glam’s branding and focuses on its goal of creating more repeat purchasers by beautifully showcasing their VIP perks. The page’s primary objective is to create a sense of FOMO that motivates users to reach the top levels of engagement with the brand.

Now 6 months since launching, Soko Glam’s program has gained heavy traction with its customer base and seen coupon redemption statistics well above the industry averages. VIP shoppers in particular engage heavily with the program to take advantage of the more curated, exclusive redemption options. These VIPs make redemptions 20X more often than average Soko Glam shoppers. The program has generated a 7X ROI for the brand.

Advice

“Allowing our customers to buy exclusive products with their points gives them added value and allows us to cut down on our costs at the same time. It’s a win-win across the board.”