iPoints.co.uk (acquired by Maximiles)
Case Study

Added 1 million members to the loyalty programme whilst raising member value

Background

iPoints is a loyalty scheme operating with online retailers to create repeat purchase patterns and loyal buyers.

We worked with them to apply more of these practices in their own business model.

What We Delivered

The "5 Moves" Methodology, applied to iPoints.co.uk (acquired by Maximiles):

More Value

The common objection to loyalty schemes is that they take too long to cash out, so we introduced a number of small experience vouchers with partners to get people to the first threshold quickly.

We also showed explicitly in our welcome communications how you could reach these instantly. We have some free points for a more in-depth survey to segment our best users.

On its own this doubled our KPI of 30-day earnings, giving us better cash flow for acquisition, and taking the finance cap off our acquisition efforts.

More Margin

The common objection to loyalty schemes is that they take too long to cash out, so we introduced a number of small experience vouchers with partners to get people to the first threshold quickly.

We also showed explicitly in our welcome communications how you could reach these instantly. We have some free points for a more in-depth survey to segment our best users.

On its own this doubled our KPI of 30-day earnings, giving us better cash flow for acquisition, and taking the finance cap off our acquisition efforts.

More Frequent

We were already a high volume email business but our analysis quickly identified hyper-responsive buyers who we could send more than one offer each day.

(Don’t ever use the word “bombard” about email. You’re not even close!)

More Predictable

The model doesn’t have many opportunities for repeat revenue but we targeted some partners who offered subscription deals and converted a small number of these.

Most of all, as our volumes and data grew, our models for customers earnings became much more predictable, and we could plan based on the value of customers in their first 3 months, rather than just one.

More Channels

With over 1 million new members added to the base we could now embark on campaigns with higher fixed costs. We moved from purely online, first into press ads, and then discussions about TV & radio.

The Results

At this point the business was acquired by Maximiles, a Frenc operator for a 20x EBIT sale price, with the scalability and predictability of the business a key factor in the pricing.

Are you ready to make more sales?

Join one of our strategy sessions