Case Study
Allbirds logo

Allbirds Korea's Secret to Explosive Growth

How Allbirds Korea’s Loyalty Program Drove 21.5K+ Members and 98.5% MoM Sales Growth With Joy

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K

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members enrolled in 5 months

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MoM Sales Growth

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%

reward redemption rate, due to winter season

About Allbirds

Allbirds is a global brand known for its comfortable, stylish, and sustainable footwear and apparel. Founded in 2016, Allbirds focuses on using natural materials like merino wool, eucalyptus, and sugarcane to create eco-friendly products that have a minimal environmental impact.

Allbirds first store
Allbirds officially opened its first store in South Korea in 2021

In 2021, Allbirds officially opened its first store in South Korea, bringing its sustainable, eco-friendly footwear and apparel to the region. This expansion is part of the brand’s mission to offer comfortable, stylish products made from natural materials to environmentally-conscious consumers worldwide.

Problems

At first, without loyalty programs, Allbirds Korea struggled with low purchase frequency and limited customer engagement. Many buyers would make just one purchase and then not return for a long time. This had a direct impact on the brand’s customer lifetime value, reducing its ability to maximize revenue over time. Therefore, Allbirds Korea wanted a customer retention solution that fit with its existing CRM.

As a result, these two main priorities were brought to Joy:

Get customers to the 2nd and 3rd purchase
Build a long-lasting and stronger relationship between the business and its customers

Effective Solutions for Real Results

1. A hybrid reward system - Encouraging upward progress

To encourage customers to make repeat purchases, Allbirds Korea launched a hybrid loyalty program. By combining short-term rewards (earn & redeem) with long-term benefits (VIP tiers), Allbirds aims to create a seamless experience that keeps customers coming back.

For short-term rewards, newly registered members begin at Level 1 and can move up by receiving a 10,000 won discount coupon. Level 1 members enjoy immediate benefits, such as access to return freeship, earn points on purchases,… which encourage them to make their first purchases.

Allbirds hybrid reward system
Customers can earn points and discounts when finishing tasks

But the best rewards are kept for top-tier members, which creates long-term benefits. Allbirds Korea has set up three tiers: Tree, Sugar, and Wool. Each tier offers unique special gifts, motivating customers to make more purchases in order to unlock these exclusive rewards. This tiered system creates an incentive for customers to keep buying, aiming for higher levels and better perks.

Allbirds Korea tiers

Results, over 21.5K+ members enrolled in the loyalty program, driving a 98.5% MoM sales growth. The tiered system successfully motivated customers to make more purchases.

2. Annual Discounts and Challenge Campaigns to Boost Loyalty

Allbirds Korea runs various campaigns throughout the year centered around key occasions to foster long-term, meaningful relationships with customers. This approach motivates people to make more purchases, strengthen their brand loyalty, and create a deeper connection with the company by offering relevant, timely rewards and promotions.

In this year, Allbirds Korea has run three campaigns based on Earth Day, Summer, Winter.

Allbirds Campagin

Earth Day Campaign: Allbirds created a challenge for customers to participate in, offering gifts as rewards for those who completed the challenge. This campaign helped promote sustainability while engaging customers in a fun, interactive way.

Summer and Winter Campaigns (for members only): These campaigns offered discounts to attract new customers and reward existing ones. By providing seasonal discounts, Allbirds aimed to increase sales during peak shopping seasons.

Allbirds sale

Allbirds Korea’s loyalty program has achieved impressive results, with over 45% reward redemption rate. Running a hybrid reward system and seasonal campaigns encourages customers to make repeat purchases and engage more with the brand and drive long-term growth.

Final thought

Working with Allbirds Korea has been a rewarding experience, allowing us to contribute to their mission of sustainability while enhancing customer engagement. Through our collaboration, we crafted a loyalty program that combined short-term rewards with long-term VIP benefits, driving repeat purchases and boosting customer loyalty. Seasonal campaigns, like those for Summer and Winter, further deepened connections with their audience. We are thrilled with the impressive results, seeing how Allbirds Korea’s customer retention and growth have flourished. It’s been exciting to support their journey and see their continued success.