How Xeno revamped Colorbar’s Loyalty Program & enabled them an Incremental Revenue of 46%

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Colorbar wanted a loyalty program that had more usage, more features & the one which could engage the customers of today. Xeno proposed a New Loyalty Structure that focused on keeping the customers engaged through exclusive experiences & surprises along with point-based rewards.

INDUSTRY

Beauty & Wellness

Result

55k

App Downloads in a month

69%

Increase in repeat orders

28%

Increase in app-based orders/revenue week on week from 0

About Colorbar

Colorbar is one of the leading beauty brands in India and now across the world. Launched in 2004, today they are the fastest-growing beauty brand with a strong geographical footprint through 100+ exclusive stores, 1200+ multi-brand outlets, and select partner chains. The philosophy of the brand is to be gender-neutral and celebrate diversity. Having the largest color portfolio, they offer a wide range of products and shades to their customers which makes them the 3rd largest brand in India.

Key Highlights

1. The Problem with the Earn & Burn Loyalty Programs & why Colorbar made a shift.
2. How did Xeno revamped & improved existing Colorbar’s Loyalty Ecosystem
3. Personalized campaigns that lead to a massive increase in Colorbar’s repeat sales

Challenge

Dependence on Earn & Burn Loyalty Programs
Earn & Burn are one of the most traditional methods of running a Loyalty Program wherein customers earn points for the money they spend. Their main aim is to encourage customers to keep purchasing in order to reach new rewards. Although Earn & Buy Programs do work for brands, today’s customers expect a lot more than just point-based rewards. They want brands to make them feel special and offer exclusive experiences & benefits. It’s more about engagement today than rewards.

Colorbar’s Loyalty Ecosystem
Colorbar relied on the same old earn & burn methods to run their loyalty program. The usage of their loyalty program was less than 1% which was a clear indicator of it not working. The customers had to spend a lot of money & visit multiple times in order to move to higher loyalty tiers. This caused a disconnect amongst customers as the jumps & rewards weren’t in line with the lifetime value of the customers.

Solution

Colorbar wanted a loyalty program that had more usage, more features & the one which could engage the customers of today. Therefore, Colorbar decided to onboard Xeno as a partner in order to develop a loyalty program that was suited for the customers of today & further delights them with personalized messaging.

How Xeno improved Colorbar’s Loyalty Program?
The first thing Xeno had to do was analyze Colorbar’s Loyalty Program deeply in order to understand why it wasn’t performing well & why the usage was less. One of the key problems was that the customers had to spend a lot of money & visit multiple times in order to move to higher loyalty tiers. In order to solve that issue, Xeno conducted various analyses such as:
- LTV analysis to understand the average spend of a customer during a visit.
- Discount incentivization analysis, how customers are responding to discounts.
- How much bill value is Colorbar generating through loyalty points.

Based on the above analysis Xeno proposed a New Loyalty Structure that focused on keeping the customers engaged through exclusive experiences & surprises along with point-based rewards.

We were looking for a partner who could help us restructure our Loyalty Program. One that had more features, more usage and the one that could drive engagement. Xeno ticked all of these boxes and gave us the results that we had been looking for all this while. This was visible in our first-ever loyalty reactivation campaign that generated an incremental revenue of 46% from dormant customers.

Aashna Babbar
/
Brand Manager, Colorbar

Campaign

Loyalty Reactivation Campaign
To promote the brand-new version of Colorbar’s Loyalty Program, Colobar launched a loyalty reactivation campaign. Xeno identified the customers who were a part of their loyalty program but hadn’t made a purchase in over a year. These customers were sent SMS campaigns personalized on the basis of the point they had with them along with the expiration date of the points. This was done in order to incentivize them to make a purchase with regular reminders of the days remaining.
 
Tier-wise Engagement Campaign
Customers today expect instant gratification, they want their favorite brands to make them feel special. With the same thought process in mind, Colorbar decided to delight their loyal customers with quarterly surprise gifts & experiences. With Xeno’s configurable loyalty system they were able to run quarterly surprise campaigns for some of its loyal customers encouraging the customers to stick with the brand for a longer period of time.

Red-Dot Sale Campaign
Red-Dot sale campaign was launched in order to promote the sale of certain product categories. Xeno analyzed Colorbar’s product portfolio to shortlist the products that were most likely to be sold out during a sale. The customer base was selected using Xeno AI audience in order to identify the customers who were most likely to convert namely  New Customers, Brand Ambassadors & Potential Loyalists

Result

All of this led to an incremental revenue of 46%.

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