Phrozen 3D Background
Phrozen is a 3D printer and parts manufacturer that also sells resins and other accessories used with this equipment. The company was set up in 2016 by a group of Taiwanese 3D printing enthusiasts. As a budding startup, Phrozen leveraged crowdfunding opportunities on Kickstarter to raise additional capital that helped it expand into the US, Japan, South Korea, and Europe.
Phrozen caters to a diverse customer base that extends beyond those who are just interested in creating 3D models for fun to business, industrial, and medical professionals. Jewelry makers are other customers to whom Phrozen sells 3D printers and supplies.
Challenges Phrozen 3D Encountered
Right from its founding, Phrozen made customer satisfaction a key objective of its operation. Its products were produced to the highest quality standards, and the business grew steadily to the point of attracting funding. However, many customers would leave soon after purchasing on the website. Expansion to newer markets meant an increase in customers and the need to address the customer stickiness issue.
Thus, Phrozen began searching for an affordable and easy-to-use tool that could manage customers from different parts of the world and increase customer stickiness.
Phrozen 3D’s Goals and Aspirations
As a brand, Phrozen had some goals it wanted to accomplish by implementing a rewards and loyalty program. The search for an affordable tool with a smooth learning curve was so as to help the brand achieve the following.
1. Enhance Customer Stickiness
Phrozen wanted to keep customers loyal to the brand as long as possible. A loyalty program fit in perfectly with this goal and would help make the customers feel appreciated by the brand, boosting their love of it and encouraging them to return and shop for supplies in the future.
2. Boost Customer Retention Rates
Many visitors to the Phrozen 3D website would visit the site, shop once, and end their association with it. Once Phrozen realized this was a pertinent issue, the company set a target to improve its customer retention rates.
3. Improve Customer Engagement
Phrozen knew that engaged customers are a vital source of feedback and constructive criticism that could help improve their products and validate what they are doing right. However, not so many of the customers engaged with the brand. Therefore, Phrozen sought a solution that would help it boost engagements.
Loloyal Solutions that Phrozen 3D Used
On testing Loloyal in a sandbox, Phrozen was impressed by its functionality and committed to the Growth Plan that allowed access to all features and any new developments. Below is a breakdown of how the company utilized different solutions.
1. Points Program
With the Points Program, Phrozen wanted to encourage customers to perform specific tasks that would earn them loyalty points. These actions and their rewards included the following.
- 1 point for each $10 spent
- 30 points for signing up to the loyalty program
- 20 points for a review of Phrozen products
- 40 points for a product review with pictures
- 100 points as a birthday bonus
2. Points and Reward Expiration
Choosing the Loloyal Growth Plan gave Phrozen better control over its points and rewards system. The client could designate a validity period for points within which the awarded customer must redeem them. Reward expiration meant that customers had to act in time to reap the benefit of their reward before it became unavailable.
3. Referral Program
To get more customers to shop on their website, Phrozen sought to reward existing customers who referred a friend to the platform. Customers referring someone would get a $5 OFF coupon redeemable when the signed-up friend buys something from Phrozen. The referral also received a $5 OFF coupon valid to use on their first purchase.
4. VIP Tiers
The VIP tiers were designed to give customers access to exclusive benefits at different levels depending on their spending habits. For example, customers who spent at least $30,000 on Phrozen products would be assigned the Gold VIP status. At this level, the customer earns two points for each $10 value shopped. Additionally, they get a 10% OFF coupon. Other levels included Bronze, Silver, Platinum and Diamond.
5. Limited Time Offers
Holidays and the shopping seasons offer a great opportunity for businesses to boost sales by providing customers with limited-time offers. Phrozen was aware of the opportunities that lie around these periods of the year and wanted to take full advantage of them with Loloyal’s Limited Time Offers feature. One such offer is that customers earn 2x points on the money they spend during the validity of the Christmas offer.
6. Email Notifications
It was also very crucial to the Phrozen 3D team to have an email notifications system that could update customers about their rewards. Loloyal’s loyalty tool allowed Phrozen to send emails concerning rewards, referrals, and VIP tier programs, informing customers they’ve earned rewards or attained a certain VIP level. The email notifications were also sent to remind customers of rewards that were about to expire and those that had already expired.
7. Integration with Klaviyo
Loloyal is designed to integrate seamlessly with Klaviyo, which Phrozen was using. With just a short setup, Phrozen 3D could sync rewards program member information to their Klaviyo account. Segmenting campaign lists based on reward program info was also possible, as was managing the personal information of each customer in the rewards program.
Phrozen Sets Up Loloyal in 24 Hours and Gains 18K+ Program Members
Phrozen 3D found Loloyal to be a cost-effective rewards program tool that was also easy to learn and use. The company contacted Loloyal to set up the program, which was accomplished within 24 hours, allowing Phrozen 3D to start rewarding customers immediately. The significant results achieved included the following.
1. Less than 24 Hours Launch Time
Phrozen 3D was particularly impressed at how quick and uncomplicated it was to set up a loyalty program with Loloyal. Loloyal team provided unlimited technical support during the process, ensuring that it was smooth and ready to accept members in less than a day.
2. More than 18,000 Program Members Sign Up
Since partnering with Loloyal, Phrozen 3D has signed up more than 18,000 members to its rewards program. Most of these members are attracted by the smooth joining process and numerous ways to earn points by shopping or completing different tasks on the Phrozen website.
3. Redemption Rates Increase By 48%
With earning and redeeming loyalty points simplified, Phrozen saw a rapid increase in redemption rates. They increased by 48%, illustrating customers’ appreciation of the program and its importance in saving money when shopping online on the Phrozen 3D platform.
4. Customer Lifetime Value (CLV) Shoots +46%
Through the introduction of a rewards program, Phrozen 3D improved the loyalty of its customers, which contributed to an increase in their lifetime value by 46%. Customers spent more on what they liked and earned rewards in exchange, while Phrozen increased sales without an additional marketing budget.
