To address the challenge of decreasing account sign-ups and participation in Smile's merchant loyalty programs. The project aimed to allow merchants to reward guest checkouts, effectively making the loyalty program more accessible and engaging for a larger percentage of their customer base.
Roles and Responsibilities
As the sole designer on this project, my responsibilities were multifaceted. I worked closely with the product manager, developers, and the head of product, ensuring a cohesive and collaborative approach throughout the design process. My role involved regular check-ins with these stakeholders to align our efforts with the project goals. I was responsible for conceptualizing the design, iterating based on feedback, and ultimately delivering a solution that addressed the identified challenges and user needs effectively.
Smile's impact was limited to only 30% of a merchant's customer base, primarily because rewards were only accessible to customers who created an account. With the rise of express checkout options like Shop Pay and Apple Pay, fewer shoppers were opting to create store accounts, leading to a decrease in loyalty program effectiveness.
Implementing a feature to reward guest checkouts, enabling merchants to engage 70% of their shoppers who prefer guest checkouts. This feature was designed to be optional for merchants, with the ability to opt in or out. For shoppers, it meant being able to participate in loyalty programs without creating an account, with points and program details communicated via email.
Pros and Cons
The implementation promised a significant increase in Monthly Active Earners (MAE) and Monthly Active Spenders (MAS), enhancing the key metric of Monthly Active Redeemers (MAR). However, challenges included the development time for integrating guest earning into the app and potential user confusion regarding point balances and reward redemption.
User Testing Results
User testing revealed some confusion regarding rewards presentation in emails and clarity of point totals. These insights were crucial in refining the communication strategy and user interface.
Impact for Merchants
The feature enabled merchants to include guest customers in referral programs and provided analytics to track the effectiveness of the guest earning feature. Merchants saw a notable increase in returning customer rates and program adoption.
Monthly Active Redeemers from Guest Earners saw a 22% increase.
Returning Customer Rate from Guest Earners increased by 15%.
Monthly Active Earners from Guest Earners rose by 6.3%.
Monthly Active Programs with Guest Earning Enabled jumped by 16%.
Monthly Adoption of the feature increased by 25%.
Outcome and Impact
The introduction of the guest earning feature significantly enhanced the effectiveness of Smile's loyalty programs. By accommodating guest checkouts, Smile not only expanded its reach but also provided a competitive edge in the market. This change resulted in higher engagement rates, increased returning customer rates, and overall growth in loyalty program adoption.