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VICTORIA'S SECRET: ANGEL TOTE/GWP

 

VICTORIA’S SECRET:

ANGEL TOTE/GWP

 

Situation:

During the economic downturn of 2007, Victoria’s Secret experienced a significant decrease of customers registering for its loyalty card — “The Angel Card.”

According to a study from Experian, 75% of U.S. companies with loyalty programs generate a return on investment. Also, 81% of consumers are more likely to continue doing business with brands that offer loyalty programs (Bond).

Victoria’s Secret knew the huge opportunity that was being missed from lost Angel Cards but didn’t have a clear strategy for how to improve engagement for the loyalty club.

 

Challenge:

Victoria’s Secret had a specific goal—get new Angel Card memberships—and wanted to use a GWP to motivate these registrations. The GWP would be an exclusive for consumers who spent a minimum $60 using a newly activated Angel Card during a specific weekend.

The solution had to incentivize shoppers to spend more than the average Victoria’s Secret consumer typically spends and register for an Angel Card.

 

Strategy:

Because of its many past successful collaborations, Victoria’s Secret called Leaderpromos to strategize how to reinvigorate its stalling Angel Cards program.

Following in-depth demographics research, it was decided that Leaderpromos would partner to develop the “Angel Tote”—a tote that has since become recognized as one of the most influential GWPs of all-time nationally.

After vacillating over numerous design concepts, it was decided to move forward and create a large double-handled open bag that was both functional, and fashionable. Leaderpromos’ art team designed the creative for the bag, which included high-end embroidery, and Leaderpromos sales representatives used their influence and experience to source the best vendors to produce it.
Promotional marketing, both digital and print, was created and disseminated to advertise the Angel Tote promotion to incentivize new Angel Card customers to the stores for the push weekend.


Outcome:

It was on brand, on budget and on time for the big weekend. Consumers flocked to Victoria’s Secret stores in droves to get the coveted tote. The initial order had to be doubled to accommodate the influx of interested consumers wanting the tote and the Angel Card membership. The average store sale increased 45% that weekend while increasing Victoria’s Secret Angel Card acquisitions 52%!

The tote was such a hit, that there was backlash from existing Angel Card customers who questioned why they weren’t recognized for their ongoing loyalty. Leaderpromos and Victoria’s Secret knew that the right thing to do was to also honor legacy cardholders with the GWP as well, so a second GWP event was created especially for these cardholders the following weekend. Leaderpromos worked 'round the clock to source, secure, and deliver another massive custom order and the average store sale increased by 45% that weekend.

NOTE: The average person has one to three loyalty cards in his or her wallet. While loyalty cards are mutually beneficial for both, consumers and companies, they are huge profit drivers for retail businesses.