In the competitive landscape of online gifting and floral retail, Ferns N Petals (FNP) sought innovative solutions to enhance customer retention and reactivate dormant customers. This case study explores how FNP implemented a multi-balance cash and reward system, leveraging wallet technology to drive customer engagement and boost sales.
FNP is India’s leading gifting brand with over 30 years of expertise in crafting memorable experiences. FNP caters to diverse gifting needs both online and through 400+ retail stores across India and beyond. Known for its commitment to quality, innovation, and reliability, FNP continues to shape the future of gifting with seamless omnichannel experiences and customer-centric offerings.
The Challenge of Wilting Customer Loyalty
Ferns N Petals faced several challenges in building customer loyalty and encouraging repeat purchases:
- Reactivating dormant customers via over-exploited discount coupons
- Improving the effectiveness of promotional campaigns
- Enhancing the refund process to encourage future purchases
- Controlling promotional burn while maximizing impact
Multi-Balance Wallet System saves the day
To address these challenges, FnP integrated a wallet solution with a multi-balance cash and reward system. This approach offered several advantages over traditional discount coupons:
- Instant Gratification: Customers received cash incentives directly in their wallets, creating an immediate sense of value.
- Flexibility: The wallet system allowed for both cash and reward balances, giving FnP more control over promotional spending.
- Seamless Omni channel Experience: Customers could easily use their wallet balance for future purchases, reducing friction in the buying process, both offline and online.
A Bouquet of Benefits
- Improved Campaign Management: FnP’s marketing team gained autonomy in running campaigns, reducing dependency on external stakeholders.
- Controlled Promotional Spend: The multi-balance system allowed FnP to set minimum order values for wallet payments (e.g., ₹200 wallet cash applicable on a minimum order of ₹1000).
- Enhanced Customer Activation: The wallet system proved more effective in reactivating dormant customers compared to traditional discount codes. In May, customers who ordered Mother’s Day gifts the previous year but were inactive in the current year got ₹200 cash added to their wallets. As 4% of customers who received the incentive redeemed it, there was a 30% higher redemption rate compared to traditional discount codes of the same value.
- Increased Customer Retention: By keeping refunds within the FnP ecosystem, the company encourages repeat purchases. About 15% of customers accepted refunds in their wallets, leading to approximately ₹2 crore in revenue via repeat purchases using wallet cash.
The Bottom Line
FnP’s implementation of a multi-balance wallet system demonstrates the power of innovative payment solutions in driving customer engagement and sales. By offering instant incentives, flexible rewards, and a seamless purchasing experience, FnP not only reactivated dormant customers but also significantly boosted their GMV across various campaigns.
The success of FnP shows that by rethinking traditional approaches to incentivization, companies can create a win-win situation benefiting both the business and its customers.
