Kids Warehouse doubles repeat purchases with loyalty program

A mid-Atlantic specialty children’s department store retailer has boosted revenue with an overhaul of its rewards offering.

Kids Warehouse provides a loyalty program known as “Kids Rewards” which offers multiple point-earning opportunities with simple actions to create 360-degree engagement for online purchases and referrals, as well as birthday and welcome bonuses. Operating stores in New York, New Jersey, and Pennsylvania, the Elizabeth, N.J.-based retailer supports its loyalty program with the artificial intelligence-based Zinrelo platform.

Leveraging the Zinrelo solution, Kids Warehouse can apply advanced machine learning algorithms to identify customer clusters and target campaign strategies for these segments across all channels. This includes targeted loyalty email campaigns, which produced an open rate 2.62 times higher than the industry average and click rate 16.45 times higher than industry average.

In addition, Kids Warehouse structured the tiers of its points-based loyalty program to be aspirational for customers. With each tier upgrade, the customer stands to receive more rewards- and points-earning capability. Higher tiers have proven valuable from the revenue perspective, with gold and platinum tiers yielding 4.69 and 25.91 times higher revenue per member respectively, as compared to the lower silver tier.

Furthermore, Kids Rewards members making five or more purchases increased by 92%. Overall, the repeat purchasers were responsible for a 10.24 times higher per-member revenue, as compared to one-time purchasers.

"The structure which Zinrelo proposed was backed by sound data analysis. I was amazed to see the insights we got," said Anabel Peralta, e-commerce manager at Kids Warehouse. "Our customers are now engaged better with our brand. I am more than satisfied with the program."