CASE STUDY. Delicious Karma. deliciouskarma.com. specialty food products

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1 CASE STUDY Delicious Karma deliciouskarma.com specialty food products

2 Sweet Tooth enabled us to make our customer experience significantly more fun, engaging and rewarding which ultimately leads to greater loyalty and sales. Jim Ritchie FOUNDER & CEO +200% NUMBER OF CUSTOMERS +58% AVERAGE ORDER SIZE +20% REPEAT PURCHASES

3 Delicious Karma Gourmet food retailer engages customer base Delicious Karma sells hard-to-find gourment food products. The founders of Delicious Karma decided that a happy, loyal, and engaged customer base would be the best strategy in order to compete with larger retailers. Delicious Karma implemented a loyalty program and successfully accomplished this goal. Delicious Karma is a customer-focused company that takes a fresh approach to finding & keeping new customers. Instead of using traditional acquisition channels such as paid search, the retailer uses a customer acquisition strategy that is powered by customer onboarding, engagement, referral, and rewards strategies. All of these strategies were unified under one loyalty program: Karma Kredits. With Sweet Tooth, Delicious Karma converts visitors into engaged, loyal customers that regularly purchase and refer friends. These friends become engaged customers who refer even more customers. This strategy caused a 200% increase in customers, as well as significant increases in average order size, repeat purchases, and revenue.

4 Results +200% NUMBER OF CUSTOMERS During 2013, the year after Sweet Tooth was implemented, Delicious Karma experienced a 200% increase in the number of customer accounts created. This is primarily caused by their Sweet Tooth referral program. +58% AVERAGE ORDER SIZE Loyal customers exhibit higher purchase sizes when compared to regular customers. In the year after launching their Sweet Tooth loyalty program, Delicious Karma saw an overall increase in average order size of 58%! +20% REPEAT PURCHASES Not only does Delicious Karma s loyalty program create new customers who spend more, these customers also spend more frequently. Customers return to earn and spend their loyalty points instead of visiting competitors. Repeat purchases increased 20% year-on-year.

5 Loyalty Program Features Delicious Karma rewards customers with Karma Kredits for customer actions and purchases. Customers earn 5% back on all purchases; 1 Karma Kredit for every $2 spent. These loyalty points ensure that customers return to Delicious Karma instead of competitors. Customers are able to spend their points on discounts and free products using an interactive point slider in the shopping cart. For every 1 Karma Kredit spent, customers receive a $0.10 discount on the subtotal of their order. Loyalty program members love the interactive nature of the point slider.

6 The Karma Challenge: 1. Connect Facebook profile 2. Submit food preference survey 3. Send referral 4. Post referral link on Facebook & Twitter 5. Like on Facebook 6. Complete user profile 7. Follow on Twitter & Pinterest The most successful aspect of Delicious Karma s loyalty program is their Karma Challenge - a 7 step onboarding process in which customers are incentivized to perform 7 actions to earn up to 350 Karma Kredits. These 7 actions all help Delicious Karma grow as a business. Connecting a Facebook profile, submitting a food preference survey, and completing the user profile all help Delicious Karma learn more about the customer to increase personalization and sales. Liking on Facebook, following on Twitter, and following on Pinterest all improve social proof and traffic. Finally, sending referral s, and posting referral links on Facebook & Twitter help directly drive new customer accounts.

7 All new accounts, including referrals, are prompted to complete the Karma Challenge. This allows for viral growth of customer accounts, and is directly responsible for a 200% increase in new customers within one year. On every page there is a progress bar that displays how far the customer is in the Karma Challenge. Beside this is a prompt to invite (refer) friends, as well as the customer s point balance. Delicious Karma also incorporates their loyalty program into their corporate social responsibility program, Karma Kauses. 1% of the retailer s profit, time, and equity are donated back to the artisan food community. Loyalty program members can chose to donate their Karma Kredits to charity rather than spending them on a discount or free product; real positive karma!

8 Want to see more Sweet Tooth loyalty programs?