The Objective
Before launching the membership functionality, Bereli operated in one of the most cutthroat retail environments in the U.S., the firearms and tactical gear market, where product parity is high and purchase decisions are often made based on price differences as small as $2–$5. In such a climate, price becomes the default differentiator, and long-term customer loyalty is rare.
Key Business Challenges
1. Price-Driven Churn
First-time buyers frequently defected to competitors after their initial purchase, lured by marginally lower prices on identical SKUs. This churn pattern undermined the effectiveness of all acquisition efforts, as each sale risked being a one-time transaction.
2. High Customer Acquisition Costs (CAC)
Acquiring a first-time customer was already expensive due to the competitive ad landscape and compliance constraints in the firearms industry. Without a reliable mechanism to drive repeat purchases, these acquisition costs eroded profitability.
3. Limited Lifetime Value (LTV)
Bereli lacked a structured loyalty program or exclusive benefit system to encourage repeat buying behavior. Without such an incentive, customers had little reason to shop exclusively with Bereli, leading to low average order frequencies per customer.
4. Fragmented Post-Purchase Nurturing
All customers, whether they were bargain hunters or high-value repeat buyers, received the same generic post-purchase communications. This uniform strategy failed to effectively engage high-potential customers and foster a deeper relationship.
5. Margin Pressure from Price Wars
Consistently positioning as the “cheapest” was not a sustainable strategy. Lowering prices to win a sale compressed margins to the point where profitable scaling was impossible, especially when competitors were willing to undercut at any cost.
The Strategic Challenge
Bereli needed a compelling, non-price-based value proposition that would not only retain customers but also increase their spending and engagement over time. The solution would have to:
- Reduce reliance on perpetual discounting.
- Build emotional and practical loyalty.
- Enable Bereli to compete on value, not just price.
- Create a data-driven foundation for ongoing customer segmentation and retention.