Pascal Culverhouse, the entrepreneur behind the UK's leading online retailer of e-cigarettes, Electric Tobacconist, who are currently running a Luckycycle campaign, has written a great article regarding Luckycycle, how it works and how it can boost your business.
Click here to view the full online article by Pascal Culverhouse (February 1st 2016), or continue to read it here.
Are you feeling lucky? Introduce ‘buy and win’ to your online shop.
Could giving some of your customers their entire basket of purchases for free actually improve your profits? Counter-intuitively, the answer seems to be a resounding 'yes!'
Luckycycle is a game that online businesses are adding to their online checkout process. To play the game, shoppers must first spend a certain amount in the store. Those that do net themselves an online scratch card and winning scratch cards give players the contents of their entire basket for free. In an ingenious twist that drives engagement, shoppers can share the game via social media to be in for another shot at winning. Those that do win get an instantaneous and hassle-free refund.
Introducing a new ‘fun’ element to the shopping experience is an excellent way to get customers talking about you. The chance of netting a sizeable reward is enough to push customers to up their spending and so qualify for the game. It also rewards customers that shop with you frequently — as they’ll be most likely to win — and it makes them feel valued. If you think about it, Lucky Cycle is simply a more generous version of the ‘buy 10 coffees get one free’ stamp cards that have become popular amongst café chains, but the random element makes it much more of a game and much less of a chore.
HOW CAN IT BOOST PROFITS?
Of course, the key ‘catch’ of the game is that only those who spend a certain amount get to take part. This means that shoppers who are just below the threshold have an incentive to spend a little bit more to be in with a chance of winning. These little ‘extra’ purchases add up to a lot over time, more than compensating businesses for the occasional free basket that they give away. The numbers can be tweaked — a higher price threshold, a lower chance to win — for more conservative businesses.
Lucky Cycles’ success saw it bag the ‘most disruptive retail technology of 2015’ award.
Lucky Cycle has already been implemented successfully over at the Body Shop and SwimShop. The Body Shop saw a +30% click through rate, +15% conversion rate, +25% average basket size increase and a +30% share rate during their two-week campaign. SwimShop saw similar results and decided to make Lucky Cycle’ a permanent fixture of their campaign. I am planning to implement the game into my own business over the next few weeks and am very excited to see the results!
About the author: Pascal Culverhouse is the entrepreneur behind the Electric Tobacconist, the UK’s leading online retailer of e-cigarettes.