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How Lokai lifted customer LTV by 42%

Sonia Nigam
June 27, 2024
Sonia Nigam

Can partnering with a nonprofit improve revenue?

Can you increase conversion, AOV, LTV, and retention for your company by aligning with a charity?

Let's take a look at a real-life example.

A Lifetime Value Bump

Lokai is well known for their bracelets and rings, some of which are cause-related.

makeawish

Lokai's been committed to great charities like Oceana, Alzheimer's Association, the Humane Society, Make-A-Wish, and others for many years.

But not all of Lokai sales are associated with charities.

So, Lokai wanted to see what the economic impact would be of partnering with a nonprofit.

Lokai wanted to know if aligning with a charity also increase LTV?

So, Lokai decided to run a test.

Here are the case study results:

Ecommerce Lifetime Value (LTV) Case Study

Company Name: Lokai

Industry: Ecommerce

Objective: Test the lifetime value (LTV) impact of incorporating cause-related product marketing.

Context: Lokai sells bracelets, rings, and related jewelry online, some of which are sold through a subscription program.

Key Issue: Lokai wanted to improve LTV by increasing subscription retention.

Method: Lokai deployed specific charity affiliations in the product descriptions and at checkout for a sampling of bracelets and then compared the LTV results with similar bracelets, at the same price point, for the same time period, that did not have a charity affiliation.

Sample Set & Test Parameters:

  • The total tested group population was 3,020.
  • The set of charity-affiliated promotion (Charity Cohort) was 393.
  • The set of non-charity affiliated promotion (Control Cohort) was 2,627.
  • The test ran for a period of five months.

Results:

  • 13% nominal retention improvement with the Charity Cohort.
  • 23% relative retention improvement for the Charity Cohort.
  • 42% estimated LTV increase for the Charity Cohort.
  • 95% Confidence Interval, +/- .5%.

Conclusion:

Charity affiliation in marketing and at checkout increases customer retention by 23%.

Charity affiliation in marketing and checkout increases estimated LTV by 42%.

Increase your customer LTV

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Run Your Own Test

If you are skeptical about your ability to increase LTV by 42%...

Run a test with us.

We will show you how to lift LTV.

You'll also learn how to lift conversion by 20%.

And you'll learn how to lift AOV by 20%.

‍What We Do to Lift Your Performance

First, you deploy our all-in-one platform that allows donations at checkout.

Our technology is easy to use and works with all the ecommerce shopping carts.

Second, we hold your hand throughout the ecommerce cause marketing process.

Adding donations to improve ecommerce performance is table stakes.

If you want to drive competition-crushing performance, you have to use best practices.

You get all the conversion, AOV and LTV secrets that we've learned by being the #1 cause marketing solution.

There's no risk for your company.

You can try our solution for no cost for 60 days.

You’ll start seeing the results quickly.

If our method and software don’t combine to be the most impactful action you've taken for your ecommerce business in 2024...

Leave and you owe us nothing.

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