Challenge

Given how competitive the beauty industry has become, DIME recognized the gravity of customer retention and its impact on their long-term success.

DIME’s previous retention strategy hinged on personalization: - Recommending the right product to a customer at the right time to encourage cross-category adoption - Offering exclusive VIP promotions - Informing customers of upcoming subscriptions and empowering them to manage them accordingly.

However, to achieve this personalization at scale and the overall impact of their retention efforts, DIME needed to be able to access real-time data, all in one place. Previously, the brand used multiple sources and “DIY” evaluation strategies from various platforms — it was simply not a hard science.

The brand’s subscriptions strategy also needed a revamp to help DIME reach their retention goals. Because brands have a 60% to 70% chance of selling to an existing customer, versus a 5% to 20% chance of selling to a prospective customer, subscriptions offer more stability and predictable revenue.

In the coming year, the brand hoped to substantially increase their percentage of subscribers compared to their total order volume, but they weren’t seeing the results they wanted. Their previous solution lacked the necessary tools for subscribers to manage their subscriptions effectively and relied on generic communications.

Solutions

DIME wanted to recognize their subscribers as “V-VIPs," the ultimate symbol of commitment to a brand — meaning they also wanted more subscribers. DIME sought a new Subscriptions partner that would provide best-in-class capabilities — and they confidently chose Yotpo.

Yotpo Subscriptions offers DIME the ideal solution for convenient, customer-led subscription management and tailored communication. Thanks to guided optimization calls with their dedicated account manager, DIME transformed their run-of-the-mill subscription updates into valuable touchpoints that incorporate customers’ loyalty information and authentically conveys the brand's voice.

This move to subscriptions consolidated customer data collected from Yotpo's reviews, loyalty, and SMS marketing solutions. They now have the power of the Yotpo Platform at their fingertips.

Leveraging Yotpo solutions’ unified data, DIME could evaluate their customers effectively. It also means they were able to identify their most engaged and profitable customer: an active Loyalty member and Subscriptions customer who is subscribed to SMS and is more likely to purchase cross-category products.

Results

With unified customer data, DIME’s segmentation and tailored communication efforts are simple to execute. In fact, DIME has already seen a major lift in ROI on texts tailored to their loyalty members. “We know that those customers like to hear from us, and our SMS campaigns just kill it every single time conversion-wise. Having that communication channel available with our most loyal customers has been a game changer for us,” says Salomon.

The brand has multiple versions of their abandoned cart flow: (1) Customers receive a discount to bring them back. (2) Eligible loyalty members can redeem points on their abandoned cart.

This strategy, which is only possible with the Yotpo Platform, has paid off. DIME consistently sees 130x ROI on this flow, win-back flows, and redemption reminder automated flows, which are triggered by preset events DIME has created these bespoke experiences given the ease and effectiveness of their SMS marketing campaigns.

DIME’s increased loyalty engagement has also prompted an increase in active redeemers. Redeemers are spending, on average, $60 more than non-redeemers. And, 70% of the brand’s loyalty members are subscribed to SMS. DIME learned that when they engage a loyalty member via SMS, these customers are twice as likely to redeem loyalty points and, on average, purchase 3x more a year than loyalty members not subscribed to SMS.

Their subscriptions strategy is on a roll too. After migrating, customers can now manage their subscriptions with no-login-required links and text replies, which has greatly improved customer experience and projected subscriber CLTV. DIME has observed a higher level of engagement from VIP members with subscriptions too, with 17% of all loyalty redemptions now being applied to Subscription orders.

With the unified data that comes with interconnected solutions, DIME has increased their repeat customer rate by 38% — bringing them to a 55% RCR overall (and still moving upward).

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