REI’s Co-op Blazes Loyalty Trails - 10/8/24

Plus, Converting Abandoned Carts into Revenue

Author

Melanie Balke
October 01, 2024

Welcome to The Retention Newsie by The Email Marketers, the retention building experts for 8-& 9-figure e-commerce brands.

Every week we bring you the best case studies, strategies, and tips around keeping more customers, turning them into raving fans, and increasing revenue.

Up this week:

  • 🗻 How REI’s Co-op Unearths Peak Loyalty

  • 📧 Bringing Back Sales with Effective Cart Flows

  • 📊 Referral Program’s Evolution, Email Structure vs. Design & More!

Reading time: 4 minutes 15 seconds

The Trail to Loyalty Starts with REI’s Co-op

In 1938, a group of 23 mountaineering friends in Seattle came together with a shared vision: to make outdoor adventures more accessible.

Led by Lloyd and Mary Anderson, they founded Recreational Equipment Inc. (REI) as a consumer cooperative. Little did they know that this small start would lead to a retail giant with over 20 million lifetime members.

REI's success story is deeply rooted in its unique business model—the co-op membership.

"There's a real sense of community that's phenomenally important. I would say it's a compelling competitive advantage."

Jerry Stritzke, Former REI CEO

The co-op membership is more than just a loyalty program; it's an invitation to be part of a community that shares a love for the outdoors.

For a one-time $30 fee, members gain access to a lifetime of benefits, including exclusive discounts, special pricing on events and classes, and the ability to vote for the co-op's board of directors.

But the real magic lies in how REI has woven this membership into every aspect of their brand story. The co-op structure allows REI to prioritize member value over short-term profits. 

"Frankly, that's [member value] front and center in the co-op much more than what I'm doing in a particular quarter, or even in the context of a year or a couple years period."

Jerry Stritzke, Former REI CEO

This long-term perspective has enabled REI to make bold moves that align with their members' values. In 2015, they made headlines by closing all their stores on Black Friday and encouraging people to #OptOutside instead.

This campaign resonated deeply with their community, reinforcing REI's commitment to the outdoor lifestyle.

REI's membership also fuels a virtuous cycle of engagement and loyalty. Members are not just shoppers; they are stakeholders who have a say in the company's direction. 

REI actively seeks member input through town halls, online forums, and even product development. In 2018, they crowdsourced ideas for new product lines, receiving over 1,000 responses from their members.

This deep engagement translates into impressive loyalty metrics. According to a 2017 study by the National Cooperative Business Association, REI members spend an average of $200 more per year than non-members. Members view REI not just as a store, but as an extension of their outdoor identity.

The most powerful aspect of REI's membership is how it aligns business success with social impact. As a co-op, REI is able to invest heavily in outdoor causes and sustainability initiatives. In 2020 alone, they gave $6.3 million to nonprofit partners and facilitated over 2,500 outdoor cleanups.

  • Turn Customers into Stakeholders: Giving members a real stake in the company creates a deeper sense of ownership.

  • Align Values with Your Community: REI’s commitment to environmental stewardship and outdoor advocacy deeply connects with its audience.

  • Create Exclusive Experiences: Members-only events and early access to sales offer exclusivity that keeps customers engaged and coming back.

  • Use Community for Growth: REI’s members double as brand ambassadors, fueling word-of-mouth marketing and driving organic growth.

  • Balance Profit with Purpose: Reinvesting in causes its members care about strengthens REI’s brand identity while boosting loyalty.

We help 8-& 9-figure e-commerce brands increase revenue and build strong customer relationships through retention marketing: Email, SMS, direct mail, subscriptions, memberships, loyalty programs, and more.

Turn Abandoned Carts into Sales Wins

Abandoned carts are a common issue in Ecommerce, with a staggering 69.57% of shoppers leaving their carts behind.

Here's how to create an abandoned cart strategy that turns hesitant browsers into loyal customers:

Frame Your Message as a Friendly Reminder 

Many shoppers simply get distracted during the checkout process. A gentle nudge can work wonders. Craft your email subject line and opening to say things like:

  • "Did you forget something?"

  • "Ready to finish your purchase?"

  • "Still thinking it over?"

This non-pushy approach can be all it takes to bring customers back to complete their orders.

Make Completing the Purchase Dead Simple 

Remove all friction from the buying process. Include a prominent, unmissable call-to-action button that takes customers directly back to their cart. Consider phrases like: "Resume Your Order" or "Complete Your Purchase" to create a sense of continuity.

The easier you make it, the more likely they are to follow through.

Reignite Their Interest 

Remind shoppers why they were interested in the first place.

  • Show off standout product features, exclusive benefits, or limited-time deals.

  • Use striking product images and sharp bullet points to reinforce the value instantly.

  • For higher-priced items, add customer reviews or ratings to build trust and boost buying confidence.

Create Urgency (But Don't Be Pushy) 

While you don't want to come across as desperate, a subtle sense of urgency can be effective. Phrases like:

  • "Your cart is waiting!"

  • "Items selling fast"

  • "Grab it before it’s gone!"

If you offer free shipping or other perks, remind customers that these benefits are still available – but maybe not for long.

Implementing a smart abandoned cart flow recovers lost sales while showing customers you care and value their business. This personal touch can transform a potential one-time buyer into a repeat customer, significantly boosting your retention rates over time.