Olaplex Increased CLTV 36% Through Charitable Giving

Olaplex is leading with purpose and inviting their customers to get involved in their charitable giving efforts. Explore how Olaplex is increasing customer lifetime value by giving back to the causes their customers care about.

Olaplex is a hair care brand that is revolutionizing the beauty industry and since its founding, has grown exponentially to include millions of fans worldwide. Committed to sustainability, Olaplex is devoted to developing and maintaining sustainable products with environmental, social, and economic benefits while protecting public health & the environment over the entire product lifecycle.  

Wanting to elevate their impact efforts, Olaplex partnered with ShoppingGives to generate donations on purchases made from their website. Since enabling donations on purchases, Olaplex has seen a 36.68% increase in customer lifetime value (CLTV)  for customers who have created donations on purchases compared to those who haven’t. 

The Strategy Behind the Impact

On purchases made from their website, Olaplex gives their customers the opportunity to create a $1 donation, pledged by Olaplex, on any purchase. In doing so, their customers are able to see their commitment to social impact firsthand.

Source: Olaplex

In addition to creating donations on behalf of their customers, Olaplex also empowers their customers to select the cause that will be supported by that donation. Since partnering with ShoppingGives, Olaplex has supported over 2,600 unique nonprofit organizations. This activation gives Olaplex the opportunity to discover which causes their customers care about, which helps them to better understand their target audience.

Outcomes

  • 36.68% increase in CLTV for customers who have generated donations on purchases compared to customers who have not.
  • 10.80% increase in AOV on orders with donations compared to orders without.
  • 51.85% increase in retention rate for customers who have generated donations on purchases compared to customers who have not.

Messaging Social Impact Initiatives

To engage their customers in their giving strategy and encourage purchases, Olaplex uses email marketing tactics. In one email example, Olaplex explains to their customers how they give back to charitable causes and shares information on how their customers can get involved.

By sending this dedicated email, Olaplex was able to highlight the values that are important to them, and invite their customers to learn more about their social responsibility initiatives.

Source: Olaplex

Driving Performance through Social Impact

According to a recent study, 63% of people buy or advocate for brands based on beliefs and values. This sentiment is showcased in the behaviors and actions of Olaplex’s customers. By selecting a cause and creating a donation on their purchase, customers are showing Olaplex that they value supporting a purpose-driven company, and are willing to spend more and make repeat purchases.

As a result, Olaplex has been able to build stronger customer relationships through shared values and by prioritizing charitable giving. Since partnering with ShoppingGives to increase awareness around their charitable giving initiatives, Olaplex has seen increases in average order value (AOV), CLTV, and retention rate.

By leveraging ShoppingGives’ integrated social impact technology, Olaplex is able to increase exposure and engage their customers in their social impact efforts while driving higher customer loyalty and revenue.

Unlock the power of social impact with ShoppingGives

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