PetMo Background
PetMo is a Macau-based brand that is trailblazing in the pet care industry. The company started with a simple yet profound mission to help pet parents have easy access to premium products that enhance the well of their beloved animal companions. PetMo’s wide range of household animal products satisfies varying needs, from improving play to showcasing pets’ personalities and keeping them looking and feeling their best.
PetMo caters to pet owners who aim to feed nutritious food to their furry friends and meet their specific dietary demands. For those who prioritize restful sleep for their pets, PetMo offers comfortable bedding and cozy shelters. Beyond pet nutrition and rest, the brand sells various products, including toys, grooming supplies, health and wellness products, and stylish apparel.
Challenges and Difficulties Encountered by PetMo
Customer satisfaction is a top priority for PetMo. It strives to ensure that each pet parent interacting with its products can get what they need, have a memorable experience, and want to return. However, fulfilling this objective has been a challenging journey. Several challenges emerged in the area of customer loyalty. These difficulties forced the company to look for a simple, easy-to-use loyalty solution to improve customer satisfaction.
Realizing these challenges functioned as a catalyst for much-needed change and a boost to the company’s customer loyalty program. From a simple observation, the process morphed into an elaborate endeavor to ensure customers were satisfied with PetMo and a recalibration of the brand’s objectives.
PetMo’s Goals and Objectives
PetMo was in a growth phase, which saw the brand outline plans for its future. The company hoped to achieve several goals by setting up a loyalty program. These goals were as follows.
1. Expansion into Multi-national Markets
After establishing itself in Macau, PetMo wanted to explore the opportunities available in other international markets where a need for a holistic pet supplies store existed. To accomplish this, PetMo needed a loyalty program that supported multiple languages.
2. Boost Product Repurchase Rate
The brand was also interested in increasing the repurchase rate of pet products that they sold. While sales were stable, there was a consensus that they could grow further by incentivizing previous customers to buy again.
3. Get Customer Feedback
As a customer-oriented brand, PetMo wanted to hear what pet parents had to say about their products by sharing comments.
Loloyal Solutions that PetMo Used
The PetMo team conducted thorough research for an appropriate rewards and loyalty program solution to help address the customer loyalty issues it had identified and achieve its goals. After testing several options, the unanimous decision was to go with Loloyal, which satisfied the following conditions.
1. Multi-language Function
Loloyal supports various languages, including English, Italian, French, Taiwanese, and Japanese. This multi-lingual feature allowed PetMo to accelerate its international expansion, with the company’s e-commerce platform now accessible to customers from the USA, Australia, Canada, New Zealand, France, Great Britain, Taiwan, Japan and Italy. Customers from all these countries can read and understand the rewards program instructions in their local languages.
2. Points Program
PetMo decided it would reward customers for the money they spend on their website by issuing them points through Loloyal. This points plan would see customers earn 100 points for every MOP$ 100 spent on items on the PetMo online store.
3. Referral Program
Pet parents are part of a tight-knit community, which PetMo wanted to get into by offering its customers a referral program to reward them and friends they recommend to the PetMo online store. Each customer gets 100 points when they refer a friend. The referred customer also receives a MOP$ 10 off coupon on their first order.
4. Rewards Program
Once customers have collected points on PetMo, they can redeem them for coupons and get amazing discounts on supplies for their furry friends. This rewards program powered by Loloyal allowed customers to redeem points for coupons as follows.
- 100 points – MOP$ 1 off coupon
- 1,000 points – MOP$ 15 off coupon
- 2,000 points – MOP$ 40 off coupon
- 3,000 points – MOP$ 70 off coupon
- 5,000 points – MOP$ 200 off coupon
5. Points for Reviews
To streamline the loyalty issues that PetMo had experienced with its customer base, the brand chose to solicit customer feedback by rewarding them for leaving comments and reviews. Loloyal made this possible with its Trustoo integration. This approach would help the brand know how to improve its products and service offerings. The customer earned 100 points for each review left, while reviews with photos got double points (200 points).
28,000 Customers Join the Rewards Program and Order 48% More than Regular Customers
PetMo has had a wonderful experience partnering with Loloyal for over a year as an annual plan client. In this time, the brand has recorded the following outstanding results through its rewards and loyalty program.
1. Program Members Grow by 28,000 Customers
Since its launch, the loyalty program by PetMo has drawn in more than 28,000 members, all keen on earning and redeeming points through spending money and referring friends. The projection is looking up, and PetMo is on course to attract even more members as the program continues to exist and improve.
2. 28.4% Customers Make Repeat Purchases
With the confidence that they will be rewarded for their purchases, 28.4% of customers visiting the PetMo store have returned to buy more pet supplies. Repeat customers mean more sales, helping PetMo improve the well-being of more pets in Macau and other places it ships to.
3. Monthly Ad Spend Declined by $456
At the height of its customer loyalty issues, the PetMo marketing team would spend vigorously on digital ads each month. With repeat customers and referrals, the company has found a consistent and reliable way to boost sales without spending lavishly on advertising. The brand has saved $456 monthly that it previously spent on ads.
4. CLV for Program Members Increases 58%
Growing the program members’ numbers by 28,000 was a magnificent achievement. But even more impressive is the customer lifetime value of these members. PetMo analyzed that the CLV for its loyalty program members was up 58% within a few months of using Loloyal.
5. +48% Orders from Program Members
Once enrolled into the PetMo loyalty and rewards program, the members order 48% more than regular customers. With each MOP$100 spent representing an equal amount of points that can be redeemed for off-the-price coupons, PetMo expects program members to make even more purchases going into the future.
