The Honest Company has a clear mission - to create safe, effective products for families. In order to fulfill their commitment to developing these healthy, vigorously tested products, they knew that there was a need to better identify and know their customer base. As a part of this initiative, The Honest Company implemented Clutch Stored Value. They understood that their gift card solution needed to expand beyond traditional use cases and act as a driver of long-term customer loyalty. This case study highlights how Clutch helped The Honest Company transform basic gift cards into known individuals that can be better understood and motivated throughout their lifecycle with the brand.
Like most brands, The Honest Company knew that they needed a gift card solution. However, they recognized that these gift cards also presented an impactful opportunity to better understand and motivate their customers. They needed to find a partner that would give them the flexibility, personalization, and loyalty expertise that was needed to transform their stored value solution.
Utilizing the Clutch Stored Value solution, The Honest Company focused on transforming gift cards into known individuals and developed an ecosystem to aid in the identification and tailored communication for each customer. To do so, the team came up with the concept of a digital account. When a customer receives a gift card and visits the website, they may not be immediately prepared to make a purchase. The Honest Company gave these customers the opportunity to add their funds to an account - requesting that the customer provide their name, email, and profile information, along with their gift card balance. Not only does this streamline the checkout process, but also allows for future fund loading.
Since implementing this feature with Clutch, approximately 95% of customers are fully identified. This means they are now able to open lines of communication with these customers and offer relevant reasons to engage with them, as they may have untapped spend. 15,000+ customers have utilized this digital account feature on an ongoing basis and this expanded data allows The Honest Company to examine how frequently these customers reload funds, total lifecycle spend, all due to the entry point of a simple gift card. Notably, customers who load funds into their account tend to have a higher redemption rate and a greater percentage of spending. This underscores the need to rethink how gift cards are perceived and paves the way for industry-wide changes in this direction.
The Honest Company understood that gift cards were far from basic - but rather an opportunity to understand their core customer and drive long-term brand loyalty. By using the gift card and digital account concept they were able to acquire customer information that allowed for increased personalization, enhanced marketing initiatives, and ultimately, informed ongoing catalog expansion. When gift cards are combined with a loyalty forward approach, the customer benefits and is able to experience the brand more fully. In collaboration with Clutch, The Honest Company was able to enrich the way the identify, understand, and motivate their loyal customers.