How an eCommerce Company Increased Customer Lifetime Value by 15%

Author Avatar Casey Hill wrote this on Nov 4, 2020

Tony Ray Tattoos is an eCommerce brand that sells temporary tattoos for kids. Unlike the normally small tattoos, at Tony Ray’s you can get a full sleeve done!

I recently talked with Jeremy, one of their cofounders, about their journey to build not just an eCommerce company, but a real community with his customers, that would help them truly stand out and grow as a brand.

“Another company could come tomorrow and make tattoos for kids. But what we are doing with Tony Ray’s Tattoos is providing an above and beyond customer experience. We believe that if you treat customers like family, they will have your back too”. 

In this article I'm going to show you how Jeremy and his team found a new method to back up these words, and along the way increased their customer lifetime value by 15%!

Improving their customer's experience with personal video

Study after study shows that people who feel like they are part of a community spend more and more frequently.

So Jeremy and his team decided to experiment with personally welcoming each new customer with a personal video using our video platform Bonjoro

Here is an example: 

And here is another one…

The customer response to this new initiative was every business’s dream…

Customers were clearly blown away by this level of customer care! 

But it wasn’t just good vibes the Tony Ray team was walking away with; let's take a look at the impact this new approach had on their bottom line.

How personal videos impacted their online sales

Here are the stats Jeremy provided me on their Bonjoro ROI,

 “So customers that watched a Bonjoro placed an average of 1.41 orders. Compared to the rest of our customers place an average of 1.15 orders. So that's a 20% increase in the amount of orders a customer places!"

And it doesn't stop there.

"Also the average Total Revenue spent by a customer that watched a Bonjoro is $38.56 compared to the rest of our customers $33.10. So that's a 15% increase in customer Lifetime Value!”

A 20% lift in the number of orders and 15% lift in CLTV! This is huge. With 100+ orders a day, this equates to tens of thousands of dollars in additional revenue for Tony Ray's Tattoos every single month.

Breaking down Jeremy's process for sending personal videos

A common question we get for sellers with lots of orders (like Tony Ray Tattoos) is: How do they keep up with it all?

First, Jeremy uses the Bonjoro and Shopify integration to automatically produce the tasks to record videos. This means his team simply has to log on, click on their name and record the videos assigned to them. 

 

Next, Jeremy just does videos for first-time buyers. Because of the volume, this is where he is spending his energy. He wants to create that amazing first impression.

Jeremy also has a co-founder and now a few interns who help with the videos too.

Part of the daily process is they each commit to do at least 10 Bonjoro videos a day. Like many other successful Bonjoro users Jeremy preaches the importance of consistency,

“You have to make it into a process and do it consistently. Once you get a handful under your belt, they become second-nature”. 

Jeremy’s top tips for sending great videos

Jeremy shared with me that simplicity was key to his success with Bonjoro. Here are his top tips.

Tip #1 - Be personal, but keep them concise

The team at Tony Ray Tattoos always calls the customer by name and thanks them candidly and wholeheartedly. They also typically keep their videos to no more than 30 seconds. It’s the authenticity, not the length that matters most. 

Tip #2 - Be consistent

By having the ten Bonjoro’s per day rule, the team at Tony Ray’s Tattoos keeps useage consistent and thus their results consistent. At Bonjoro we notice that the most successful customers are those who use the tools consistently. 

Tip #3 - Use A Compelling Call to Action

At Tony Ray’s Tattoos they have a loyalty program that customers can sign up for to get discounts. The way they phrase it is, “You just earned 15 points! Claim your reward by clicking the button below”. Then the user has to join the loyalty program to get their reward.

It’s a great way to keep customers involved!

Jeremy told me, “Customers are like family to me. It’s not just a saying or a “slogan” for us. It’s how we act. If a customer has an issue with an order, we make sure they are taken care of. If a customer is loyal to the brand, we make sure to reward them. We take care of people and that is how we have achieved success in our business."

Ready to try Bonjoro yourself?

If you're ready to start delighting your own customers you can try Bonjoro completely free for 14 days right here.

And if you are looking for more ways you can use personal video to grow your eCommerce store, our eCommerce Video Funnels page is full of great ideas and templates you can copy and use today.

Receive monthly tips on how to convert more customers, tackle churn, and spark a little #CustomerDelight