Category: Case Study
Vertical: Health & Nutrition
Est. Read Time: 3 min

 

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Body Energy Club is a successful chain of one-stop shops for vitamins and health food products. Despite strong success in Canada for the past 14 years, the owner knew he needed to do things differently in the US to build their customer base. With the help of Thirdshelf’s loyalty software, Body Energy Club was able to build sophisticated marketing campaigns to accelerate it’s growth and keep customers coming back.

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Challenge

Well-known in the Vancouver, B.C. area, Body Energy Club believed it would need a different approach to build brand recognition for its first US location of one-stop health products and smoothies. With intense competition, the owner was committed to accelerating growth at the new location to speed profitability, but needed a more effective process to connect (and reconnect) with customers than it was using in Canada.

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Solution

Stay Top of Mind. Thirdshelf provided Body Energy Club with a full-featured, cloud-based customer tracking and loyalty program integrated with the store’s point of sale system. The store owner easily captures customer data, purchasing habits and tracks performance of marketing programs to build a following more quickly than he had in Canada.

Results

  • In its new US location, Body Energy Club grew its daily revenue 400%, reaching $4,000 a day in a short 8 months.
  • Customer engagement and email marketing programs delivered by Thirdshelf’s cloud-based service, achieve email open rates of 85%, significantly higher than the industry average 18% open rate.
  • Offers sent to Body Energy Club’s customers generate a 16% redemption rate, significantly higher than the industry’s average of 0.13%.
  • Body Energy Club’s customer database reached 6800 members within the first six months.

 

Before Thirdshelf, I didn’t really know what I didn’t know. But they made me pay attention to the data. Since it is very visual, it is simple to go in and get reports. That’s what I really like about it.

Dominick Tousignant, owner and founder of Body Energy Club

Data-driven decisions

Small retailers typically rely on their intuition to figure out their customer buying patterns and who are their most profitable customers but their data often shows a very different picture,” says Antoine Azar, CTO, Thirdshelf Inc.

 

“We observed a disconnect between what business owners think is going on in their business and what the data actually shows. In the brick and mortar world, collecting data can be very hard and habits around making sense of the data are still rare,” he says.

 

Thirdshelf built a customer loyalty platform for independent retailers that tracks purchase patterns, analyzes the data and provides retailers with automated marketing programs to let them engage and re-engage with customers. The powerful, cloud-based system integrates with a retailer’s point of sale software to synchronize customer and transactional information.

 

“We built a cost-effective solution to enable retailers to collect customer data, extract insights from this data and automate marketing campaigns based on those insights to bring customers back in store or increase the average basket size,” Azar says. Thirdshelf also reports back on the effectiveness of each campaign in exact dollar amounts generated, providing retailers with a real measure of return for the first time. “We’re putting retailers back in the driver’s seat of their business to empower growth. This is a totally new reality for retailers and was something previously reserved for big box chains that could afford to spend millions.”

 

Thirdshelf’s tools were the right combination of data analytics and marketing program support for Body Energy Club as it prepared to launch a new US location.

 

Tracking Free Smoothies

After seeing significant growth and expansion in his nutrition, supplement and smoothie business in Canada, Dominick Tousignant, owner and founder of Body Energy Club, looked south of the border for expansion opportunities. He opened his first US location on Hollywood Boulevard in 2015.

 

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“We found a good, high traffic area but I wanted to do something different here. I thought we needed an incentive program to build clientele here because, while we’ve been around in Vancouver for 14 years and everyone knows me, nobody knows us in California, and I don’t want to wait 14 years to build it up like I did in Vancouver. I wanted to speed things up and turn a profit within the first year,” says Tousignant.
 

Despite having loyalty programs in Canada, Tousignant didn’t want to transplant a system he described as archaic and limited. “What we liked about Thirdshelf was that it is a very interactive platform,” he said, noting the fact it was cloud-based also meant he didn’t need to worry about adding and managing hardware infrastructure. “I’d rather have someone else deal with that (hardware and software) so I can focus on what I do best which is customer service.”

 

“I knew we needed to stop going out and getting new customers all the time. We need to increase sales from the existing base,” says Tousignant.

 

Thirdshelf helps retailers target marketing programs to very specific customers and their buying patterns. The solution helps retailers like Tousignant to better understand the purchasing preferences of their customers. At the Hollywood location, for example, customers don’t like to buy large packages even if it means saving money.  They’d rather come back regularly to restock.

 

Within the first months of opening, Body Energy Club has built a database of over 6,500 customers, and was seeing a 10% monthly growth rate. “Thirdshelf has been very good about being trackable and letting us adjust our programming to target specific customers. For example, everyone who hasn’t shopped in 30 days will get an email saying we’ve missed them, and to come in and have a free smoothie,” says Tousignant.

 

By leveraging Thirdshelf analytics, Body Energy Club created customized customer programs that boast open rates of 85% which Tousignant says is significantly higher than the marketing industry average open rate of approximately 18%.

 

Creating a Following

Within the first six months, Body Energy Club USA hit $3,000 a day in sales, which Tousignant says is nearly double the daily sales they achieved when they opened their first Canadian location 14 years ago.  Tousignant expects to hit his goal of $5,000 a day in sales within 12 months.

 

“We have started using more and more features. During our very first Black Friday event in Hollywood, people were lined up 100 deep by 7 a.m. to sign up for the loyalty program and take part in the giveaways,” says Tousignant who was blown away from the response to his Black Friday email campaign. In one day, they signed up 100 new customers for the loyalty program and gave away 300 smoothies.

 

“Before Thirdshelf, I didn’t really know what I didn’t know. But they made me pay attention to the data. It is really good information that I can put to work in my business. Since it is very visual, it is simple to go in and get reports. That’s what I really like about it.”

 

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About Body Energy

Body Energy Club opened its first Canadian store in Vancouver in 2002 to provide customers with a single stop source for vitamins and health food products. The company expanded to five locations and opened smoothie bars in its stores. Most recently, the company expanded into the United States with its first retail outlet in Hollywood, California.