How Lokai increased retention by 23% by adding charitable donation options

Lokai is a socially responsible lifestyle brand that represents the importance of finding balance along life's journey. The company infuses its trademark bracelets with elements sourced from the highest and lowest points on Earth – water from Mt. Everest and mud from the Dead Sea.

Industry:

Retail

Website:

lokai.com

Use Case:

Loyalty Programs

Challenge

Lokai wanted to deepen customer loyalty by improving their loyalty program offerings. They turned to Change to allow members choose which nonprofits their purchases would benefit.

Results

Using Change, Lokai allowed members to choose from 1.3 million nonprofits to receive 10% of their purchase amounts as donations. This added choice increased retention by 23%, reduced churn by 30%, and boosted LTV by 42% over a 5-month period. This demonstrates the positive impact of empowering customers to support their preferred causes.

About Lokai

Lokai is a leading sustainable jewelry line. Each Lokai bracelet holds water from Mount Everest and mud from the Dead Sea—the highest and lowest points on Earth. The Lokai lifestyle is devoted to finding balance, sharing success during life’s peaks and gaining perspective during lows. Lokai supports this message by donating 10% of their net profits to various charitable organizations. Since launching, Lokai bracelets have been sold in over 160 countries.

Goal

Increase enthusiasm and connectedness for Balance Club members

Lokai has a successful loyalty program, called the "Balance Club", with thousands of members. Mission-driven consumers buy Lokai bracelets to support causes they care about, and that has always been central to Lokai’s mission.

Historically, Lokai has donated 10% of net profits to a variety of nonprofits. To further engage their loyal customers, Lokai was looking for a streamlined, seamless way to let their customers choose which nonprofit their purchases ultimately benefit. In other words, Lokai wanted to personalize the customer journey by letting their customers donate a portion of their purchases to a cause they personally care about.

The end goal would be to increase customer loyalty and enthusiasm amongst Balance Club members.

Solution & Results

23% increase in retention

In their quest to strengthen customer loyalty and retention, Lokai introduced a new selection of charitable options for its Balance Club members. These members now have the opportunity to designate a specific nonprofit to which 10% of their purchase will be donated, a testament to Lokai's commitment to intention-setting, habit-building, and balance-seeking. This choice Lokai affords its members fosters a deeper connection between customers and their preferred charitable organization, making it a win-win for all involved.

In fact, within five months, Lokai noticed that churn decreased by 30% and retention increased by 23% after introducing this donation option. This also increased customer LTV by 42%!

Lokai's revamped loyalty program lets users donate

Lokai’s new charitable component is powered by Change’s easy-to-implement API. Change seamlessly integrates into Lokai’s checkout flow and membership portal, making it super easy for members to select their preferred charity. Change handles the regulatory burden and state-by-state filings on behalf of Lokai, which have historically been a hurdle for many companies hoping to give back. This frees up time for Lokai to dedicate to better serving their Balance Club members and crafting creative bracelet designs.

With this new integration, Lokai’s charitable commitments can be realized on a regular basis, nestling their way into their customers’ typical (and expected) shopping habits. Because customers feel more connected to the causes they're supporting, it makes sense that customer LTV increases, too.