What is the impact of iHerb’s loyalty and rewards program on repeat purchases?

iHerb’s loyalty and rewards program positively impacts repeat purchases by incentivizing customers to engage with the platform through referrals, product reviews, and answering questions, which earn them Rewards Credit redeemable on future orders. This creates a cycle where customers are motivated to return and make additional purchases using their earned credits.

Key features driving repeat purchases include:

• Referral rewards: New customers get a 10% discount and the referrer earns $10 USD in Rewards Credit on the referral’s first order. Existing customers earn 5% commission in Rewards Credit on referrals’ purchases, encouraging sharing and repeat buying.

• Review incentives: Customers earn $1 USD in Rewards Credit for each approved product review and additional credit for helpful votes, up to $21 per review. This encourages ongoing engagement and repeat visits to review multiple products.

• Answer rewards: Customers can earn up to $10 USD per product by answering questions and receiving helpful votes, further promoting active participation and loyalty.

• Unlimited earning potential: There is no cap on the amount of Rewards Credit customers can accumulate, with many customers reportedly getting products free of charge monthly by redeeming credits, which strongly encourages repeat purchases.

• Cash out option: Customers can cash out Rewards Credit once they reach $100, adding flexibility and perceived value to the program.

Overall, iHerb’s rewards program fosters customer retention and repeat purchases by providing tangible financial incentives tied directly to customer engagement and advocacy, making it a customer-friendly and effective loyalty strategy.