During the economic downturn of 2007, Victoria’s Secret experienced a significant decrease of customers registering for its credit/loyalty card — “The Angel Card.”
According to a study from Experian, 75% of U.S. companies with loyalty programs generate a return on investment. Also, 81% of consumers are more likely to continue doing business with brands that offer loyalty programs (Bond).
Victoria’s Secret knew that increasing the number of new Angel Card holders could result in a significant ROI, but they lacked a clear strategy for how to acquire new credit card customers.
They decided to use a Gift With Purchase (GWP) strategy to motivate new registrations. The GWP would be exclusively for consumers who spent a minimum of $60 using a newly activated Angel Card during a specific weekend.
Victoria’s Secret and the Leaderpromos Agency have had many successful collaborations in the past. Now, Victoria’s Secret was calling on the agency to strategize how to increase credit card acquisitions during the economic decline.
Our solution was designed to incentivize shoppers to sign up for the credit card account, and spend a minimum of $60 upon approval – a 25% increase in average dollar sale. This was a lofty goal, but with the right product, it was achievable.
Following in-depth demographics research, the agency partnered with Victoria’s Secret to develop the “Angel Tote.” This product has since been recognized nationally as one of the most influential GWPs of all time.
The agency worked through multiple design concepts before deciding on a large double-handled open bag that was both functional and fashionable. Leaderpromos Agency’s creative team designed the artwork for the bag, which included a shimmery pink oversized “Angel” logo. Once the design was approved, the agency’s sourcing team worked directly with reliable overseas factories to deliver a quality tote at a great price, all on a compressed timeline.
Additionally, the agency created and distributed promotional marketing materials to individual stores. The digital and print pieces advertised the Angel Tote as an incentive to new Angel Card customers during the push weekend.
The Angel Tote was on brand, on budget, and on time for the big weekend.
Consumers flocked to Victoria’s Secret stores in droves as the tote became a hot commodity. Average store sale increased 45% year over year, and Angel Card acquisitions grew by 52%!
The tote was such a hit that there was an uprising of sorts from existing Angel Card customers who wanted to be recognized for their ongoing loyalty. The agency and Victoria’s Secret knew the right thing to do was to honor legacy card holders, so shortly after the initial event, they held a second GWP event specifically for these long-time Angel Card members. The agency worked around the clock to produce and deliver a second tote order. As a result, the average dollar sale increased by 45% the second weekend as well.
VS Pagoda Umbrella
• Full size pagoda shaped umbrella – all pink – unique, eye catching design
• Promoted at all stores – pink really stood out on a gloomy Manhattan day
By designing and producing unique and valuable GWP items, the agency was able to help Victoria’s Secret significantly increase their customer and credit card acquisitions as well as their average dollar sale.