Loyalty? It’s in the Bag
GIVEN THAT A RETAILER buying bags in quantity today likely won’t need to replace them for two to five years, how has online marketer eBags, which launched in April 1999, already seen a 30% repurchase rate among its 125,000 customers?
Partly due to expanding the definition of “bag” to encompass 5,000 items that include briefcases, wallets, golf bags, computer cases and travel accessories. But mostly because of My eBags, a loyalty program as much about lifestyle as luggage.
Eighty percent of eBags’ customers belong to My eBags, a permission-based club coordinated by Post Communications, the e-mail marketing division of Netcentives, San Francisco. When members sign up, they provide lifestyle data and can choose to receive e-mail offers and promotions like sweepstakes and partner deals, a monthly newsletter or news related to their interests.
To director of relationship marketing Larry Martine, loyalty is more than points-based programs. Martine sees My eBags as a tool for building communities among his customers in seven categories: travel, business, sports, fashion, students, outdoors and kids. Members are encouraged to share details about their vacations, travel hints and even pictures on the members’ Web sites that reflect these categories.
Later this month, My eBags will incorporate a customized recommendation engine into its e-mail broadcasts. Applied Predictive Technologies’ software has been in place on the site since midyear. It has resulted in a 10% to 15% increase in the average purchase amount.
But not all of the program’s members are customers. Why would people join My eBags without buying anything? One reason might be for a chance to win a million frequent flyer miles. eBags runs four promotions a year, with travel-related prizes as giveaways.
Just the same, in 90 days the sweepstakes netted 60,000 consumers willing to be added to eBags’ database. Ninety-seven percent of these were new to the site, and cost about 40 cents per name. Two percent of first-time visitors made a purchase after registering. eBags would have to spend much more to pick up a similar number of program participants through list rentals.
The sweepstakes succeeded partly because it was a viral program. The first prize was a million frequent flier miles, but if the winner registered as a result of a recommendation, the individual making the referral would receive 50,000 miles.
