About FSAstore.com
FSAstore.com is both the largest online marketplace for guaranteed
FSA-eligible products and an educational resource that you can actually understand. It’s the company’s mission to help millions of flexible spending account holders manage and use their FSAs and save on more than 4,000 health items using tax-free health money.
Objectives and Challenges
- Improve Customer Retention
- Increase the Sales Conversion Rate
The Solution: A Rewards Program
With the objective of maximizing revenue by improving customer retention, FSAstore.com implemented an attractive rewards program using Zinrelo’s
modern-day loyalty rewards platform. It achieved a whopping 1 million subscribers for its FSA Perks Rewards Program.
FSA Perks – Rewards Program Overview
With the FSA Perks rewards program, FSAstore.com was able to migrate to points-based promotions instead of cash discounts.
For example, FSAstore.com could identify customers who had not shopped in six months. For these “at-risk” customers, a win-back promotion was delivered that offered bonus points for making a purchase within a week. This promotion proved effective at engaging customers who were likely to be lost.
Engagement with Rewards Program
FSAstore.com used the rewards program to increase customer engagement. For example, a website feature named FSA Tracker enabled customers to input their FSA deadlines and receive email reminders to notify them when their spending deadlines were approaching. Unfortunately, customers were not utilizing this feature. To encourage customers to provide these details, FSAstore.com used rewards points as an incentive. Bonus points were awarded to customers who entered their spending deadlines. This resulted in a noticeable increase in FSA Tracker use.
Promotion Using Rewards Points Instead Of Discounts
- Winback Promotion: Reward at-risk customers with bonus points when they buy within a limited period.
- Redeemed But Not Purchased: Target customers who exchanged points for coupons but did not make purchases.
- Sweepstakes: Sweepstakes activity around the shopping season to encourage more participation and engagement in the program.
Engaging VIP Customers
Zinrelo offered a higher incentive to FSAstore.com VIP customers who were extremely active with their yearly tax-free health spending. Multiple reward tiers based on various customer segments helped drive higher participation in the rewards program. Data analytics provided more insights to plan and execute campaigns.
Regression Analysis – Life Time Value Uplift
FSAstore.com took a cohort of users acquired over a few months in 2018. Based on past data, they applied regression analysis to predict the Customer Life Time Value (Customer LTV or CLTV) 12 months after acquisition. Then they ran loyalty promotions using Zinrelo’s rewards program for this cohort of users and measured the actual CLTV after 12 months. By comparing the predicted vs actual value of CTLV, FSAStore.com concluded that the loyalty rewards program promotions resulted in a 22% uplift in CLTV.
