Case Study: Arnold Pet Station – Reducing Client Turnover through Membership
Rewards Program (April 1, 2017 – April 1, 2018)
Background: Arnold Pet Station, a veterinary clinic in MD, partnered with Rethink Veterinary Solutions to address growing client turnover and enhance loyalty among both new and existing clients. To achieve these goals, the clinic implemented a membership and rewards program while also launching the in-house charity initiative, Paws for a Cause, to give back to their community.
Challenges: Arnold Pet Station faced several challenges, including:
- Retaining loyal clients while competing with other veterinary practices.
- Attracting new clients and ensuring they returned for future services.
- Low participation in wellness plans: Previous attempts at offering wellness plans yielded very little participation and underwhelming results.
- Building a program that could simultaneously drive business growth and support charitable efforts.
Solution: Rethink Veterinary Solutions created a membership and rewards program tailored to these goals. This program offered value to both new and existing clients while fostering a sense of community by integrating a charitable component.
Membership Benefits: The membership plan, which cost $95 for enrollment, offered a variety of benefits aimed at encouraging repeat visits and driving long-term loyalty:
- Two exams included during the membership year, allowing clients to bring their pets in for routine checkups at no additional cost.
- 5% cashback rewards on every purchase, automatically loaded onto the membership and redeemable for future services.
- 1% donation of every dollar spent at Arnold Pet Station to their in-house charity, Paws for a Cause, helping local pets in need.
- One complimentary nail trim for their pet during the membership year.
- Exclusive offers and bonuses throughout the year, providing members with additional value.
- Cost savings plan: For the $95 enrollment fee, members received $139.50 worth of total services, representing a 32% savings, plus 5% cashback on all purchases.
This comprehensive membership plan encouraged clients to return for essential services while providing them with rewards that could be applied to future visits.
Key Insights:
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Retention through Memberships:
- The program generated $33,060 from 356 memberships during its first year. By including valuable services such as exams and nail trims as part of the membership package, Arnold Pet Station encouraged repeat visits while securing paid loyalty commitments from clients.
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Rewards-Based Retention for Current Clients:
- The rewards system offered valuable services and 5% cashback on all purchases. These rewards encouraged existing clients to return frequently, enhancing long-term loyalty without relying on discounts.
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Paws for a Cause: Supporting Local Pets in Need:
- Through the Paws for a Cause initiative, Arnold Pet Station donated 1% of total member spending during the year, contributing to the care of local pets in need. This amounted to 1% of $360,121.36 in member spending, creating goodwill while formalizing the clinic’s charitable efforts. The initiative helped pets facing unexpected emergencies or economic hardship, reinforcing the clinic’s role as a community partner.
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New Client Engagement through Offers:
- For new clients, the inclusion of key services like exams, nail trims, and cashback rewards provided a compelling offer that converted many new clients into committed members.
Results: From April 1, 2017, to April 1, 2018, Arnold Pet Station’s collaboration with Rethink Veterinary Solutions resulted in a significant reduction in client turnover and stronger client loyalty. The rewards-based membership program encouraged repeat visits, while the Paws for a Cause charity initiative further enhanced the clinic’s community presence.
While total member spending reached $360,121.36, Arnold Pet Station donated 1% of that total to fund Paws for a Cause, providing life-saving care to pets in need. This approach not only built goodwill within the community but also positioned the clinic as a compassionate and community-centered business.
Conclusion: Through the combination of a rewards-based membership program and a meaningful charitable initiative, Arnold Pet Station successfully reduced client turnover and increased client loyalty. By offering valuable services such as exams and nail trims, the clinic encouraged repeat visits while giving back to the local community through Paws for a Cause. This case study highlights the importance of a well-structured retention strategy in driving long-term success in a competitive veterinary market.