Enabling a membership model to drive engagement and revenue growth
About
Pela was born with the mission to make sustainable, eco-friendly products for everyday use. The idea originated on a beach in Hawaii in 2010. Founder Jeremy Lang was vacationing with his family when he noticed his son had dug something up in the sand. Upon closer inspection, he realized it was a piece of plastic the sea had washed on shore. Jeremy got to thinking about how he could be a part of the environmental solution, reducing waste in our planet’s oceans.
Founded in community, creativity, and consciousness Pela makes phone cases and other products with sustainable materials. They also work to educate and inspire a global community of people who are committed to making a positive impact on our planet.
“Creating a membership program allows us to engage with our biggest fans at an even deeper level. We can get quick feedback on launches and provide even more value to excite the customers who are most aligned with our company's mission.”
Chris Fleguel
Growth Marketer, Pela
Challenge
They wanted to incorporate a subscription model, but with phone cases as their main product, Pela was faced with a unique challenge. How could they empower customers to buy multiple phone cases, when traditionally, a person only buys one for the lifetime of the device? They also wanted the process to be totally positive, so customers would share the product with others, and create a network of referrals.
Solution
The Pela team made a foundation for scalable growth. First, they built a planned membership model, the Collective, to get members in the program, and increase engagement with existing customers. With Recharge’s API, Pela designed their ideal program: members get 30% off all orders for life, free returns, and exclusive access to new product launches. Pela also needed to generate awareness. They leveraged affiliate marketing, and partnered with Save the Waves and Surfrider Foundation to create engravings and limited edition products. With this extra visibility through partnerships, they drove customers towards the Collective.
Results
With a product good for both people and the planet, Pela saw a lot of interest. Within just the first two months of implementing Recharge, Pela gained over 7,000 new subscribers. And, to continue offering value in a unique subscription model, Pela gives subscribers a special surprise at the six month mark of their membership.
With Recharge’s API, Pela delivered a seamless shopping experience. And, customers were happy—60% were still subscribed after seven months. As a mission-driven brand, Pela encouraged customers to continuously engage with the cause via their subscription. Subscribers continuously interacted with their membership as part of a collective that champions values of sustainability and positive impact. And, subscriptions with Recharge drove engagement and loyalty. Pela saw a 50% increase in six month LTV for subscribers versus non-subscribers.
“It’s exciting to extend our sites into the world of subscription ecommerce, which allows us to take advantage of the growing recurring revenue ecosystem. We’ve seen a stabilization in our revenue forecasting, and it’s been fantastic growing our LTV.”
Ian Field
Director of Technology, Pela
