How Headphones.com increased repeat purchases by 47%
A premium audio retailer transforms customer loyalty with AI-powered rewards and predictive retention campaigns.
"Lantern has had a bigger impact on our store than anything we've done in years. It increased revenue and made our customers happier — it's so rare to find a solution that does both."
The Challenge
Headphones.com is a premium audio retailer known for exceptional customer service and expert advice. Despite high customer satisfaction, they struggled with repeat purchases and had no way to identify at-risk customers.
- High customer acquisition costs in competitive audio market
- Low repeat purchase rate despite high customer satisfaction
- No visibility into which customers were at risk of churning
- Manual, time-consuming loyalty program management
Before Lantern
The Solution
AI-Powered Churn Prediction
Identified at-risk customers before they churned, enabling proactive retention campaigns.
Tiered VIP Program
Created exclusive benefits for top customers, including early access to new products and expert consultations.
Automated Win-Back Campaigns
Triggered personalized offers when customers showed signs of disengagement.
Points for Engagement
Rewarded customers for reviews, referrals, and social shares—not just purchases.
The Results
Within 6 months of implementing Lantern, Headphones.com saw transformative results across every key retention metric.
- 47% increase in repeat purchase rate
- 62% of customers now enrolled in loyalty program
- 3.1x higher LTV for loyalty members vs non-members
- 28% reduction in customer churn
After Lantern
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