Irresistible Me launches a paid membership program that gets adopted by 51% of their shoppers; Members spend 56% more than regular shoppers!
About Irresistible Me
Irresistible Me is a DTC hair extensions brand that has been around since 2012. The company has become famous thanks to its playful influencer marketing, high-quality products, and affordable pricing.
Challenge
At the beginning of 2023, the management reevaluated the performance of their points-based loyalty program.
Participation was under 5%, indicating that it wasn’t resonating with shoppers in the crowded DTC space or driving retention gains.
Solution
The leadership team approached Subscribfy for help in strategizing an impactful retention strategy. The first step was to design a shopper survey to see if the idea of a paid membership would resonate with customers. (Hint: they said YES). Then, the Subscribfy team took a deep dive into the Irresistible Me data to understand shopper behavior and design a membership offer that would be appealing.
Hair extensions is not a category with a very high repurchase rate. The product is reusable and expensive; it’s not something a shopper buys every couple of weeks. The ideas of quarterly and even annual memberships were considered; however, the projected opt-in rate for such programs was around 5%, the same as the points-based loyalty program.
Subscribfy built a monthly membership program: for $39.90 a month, a shopper would get their entire membership fee back in store credit, 50% off all orders, and free shipping. The goal was to create an offer where it’s a no-brainer for customers to sign up because of the value they’re getting.
Impact
After six months, it was evident that the program resonated with shoppers, as 51% would consistently opt-in to a membership (a figure that still stands true today). What also became clear is that Irresistible Me members used store credit balance as a “wallet” or “allowance” to save up for their next big purchase. They would come back after 4-5 months of accumulating store credit and spend it on a $300+ item.
After 18 months of being live, over 14,000 shoppers joined the program. Seventy percent of the shoppers who become members are first-time shoppers, which boosts marketing efficiency. Members spend 56% more when compared to regular shoppers, an extra $121. Since the launch of the VIP membership, Irresistible Me has experienced a 38% increase in returning customer rate.
With the paid membership model, Irresistible Me has achieved its goal of creating a retention strategy that generates a significant impact on the bottom line. The cash flow generated by membership fees has allowed the company to grow profitably even in the tough high-CAC environment.
