ICON Meals is a haven for health enthusiasts seeking delicious, ready-to-eat meals. Catering to those who lack the time or motivation to hit the gym or meal prep, ICON Meals offers meal choices based on individual goals – be it weight loss, muscle building, or clean eating – to help you sculpt the best version of yourself.
Challenge:
High Expenses and Cumbersome Customer Experiences
Like any business, ICON Meals occasionally grapples with the need to issue refunds. The week-long wait for the refund was not only a pain point for customers but also a financial burden on the business.
Traditional growth avenues were not feasible due to the global economic downturn, which made advertising exorbitantly expensive. Furthermore, increasing the average order value was neither a sustainable nor a healthy option for their customers.
The in-store Shopify POS experience was another hurdle. Customers wishing to use gift cards had to endure long waits while cashiers manually entered their codes, owing to Shopify’s lack of a scannable QR code or barcode feature.
Solution:
Increase Lifetime Value Through Repeat Purchases and Referrals
In collaboration with Rise, ICON Meals revolutionized their refund process by offering immediate store credit, enhanced with an extra 10-15% to entice customers to revisit ICON Meals. This approach curtailed their daily cash refunds to a maximum of $500, with the balance issued as Rise credit.
ICON Meals also pivoted from advertising to nurturing customer loyalty, with a focus on augmenting repeat purchases. Strategies included offering a 6% credit back on purchases exceeding $150 and issuing Rise credit for referrals.
Referrals became a central focus, with Rise’s user-friendly testing allowing ICON Meals to experiment with various referral commissions. Rise’s integration with Apple Wallet also enriched the omni-channel customer experience, providing a seamless, Starbucks-like app experience for customers.
Results:
A Whopping 57% Surge in Bottom Line Sales for Repeat Customers
With an average store credit redemption rate of 32% and a 12x upsell on gift cards, ICON Meals significantly trimmed refund costs. Their unique Cash Back rewards program for high-value purchases boosted the average lifetime value of returning customers by 20%.
One of ICON Meals’ most successful growth campaigns was a three-day trial where they increased referral credit from $15 to $50. This bold move resulted in more orders than they typically see in an entire month. Moreover, these referred customers proved to be more valuable, exhibiting a 50% higher LTV than the average customer.
