20 Sept 2023

How to increase revenue with your incentives & Talon.One


Sam Panzer

Director of Industry Strategy

Loyalty program ROI

5 minutes to read

In a series of blog posts, we’re exploring the benefits of Talon.One to increase efficiency, increase revenue, and decrease risk. Catch up on the other posts in the series here: 

Personalized experiences & compelling offers are a top focus for marketing organizations. However, moving data through the organization to manage compelling incentives at scale remains a major technological and operational challenge. Talon.One is a promotion engine to address that challenge, helping brands manage promotions, pricing, and loyalty incentives using any data.

With native integrations and robust API connectivity across the customer data & experience stack, Talon.One empowers marketers to run any incentive using any data. Having partnered with brands like Adidas, Ticketmaster, Eddie Bauer, Carlsberg, and Domino’s, we process billions of dollars in incentivized revenue every month with our customers, repeatedly launching projects that deliver double-digit growth to customer conversion, spend, and frequency.


In this blog post, we’ll focus on the first pillar, revenue growth, elaborating on the benefits, value levers, and real use cases from Talon.One clients.

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Increase revenue analysis

When a business is considering a project with Talon.One, we collaboratively estimate the economic value any new functionality will deliver using a range of uplift figures based on confirmed customer results. We also estimate the costs of the project (both the subscription cost of Talon.One and the resources the customer will require to launch and iterate with our product) to estimate the ROI.

A customer’s uplift varies tremendously based on: 

  • Their starting point before using Talon.One

  • The sophistication we are able to achieve given the realities of their business & data stack.

To highlight our approach, we can examine a hypothetical customer business case.

Let’s take a sample $50m revenue retailer with a $50 AOV, where 20% of their orders are discounted: 

  • Prior to Talon.One, they run a robust & effective CRM program, communicating personalized messages in the user’s preferred channels with Braze. But their offers are formulaic, simple, and redeemable by any user. 

  • The customer purchases Talon.One to instead send dynamic offers in the user’s preferred channels, and to increase their ability to test and measure new loyalty member benefits. 

  • We review the customer’s commercial & operational KPIs and identify 5 value levers to drive revenue, and 4 strategic objectives

    • Increase basket size 

    • Increase repeat purchase rate 

    • Increase ecommerce conversion 

    • Increase messaging conversion 

  • With anticipated implementation & subscription costs of $240,000, we expect a 4.9x ROI after the first year of activity with Talon.One.


How Talon.One drives revenue growth for clients 

In this section, we’ll take a look at how you can boost revenue with Talon.One by improving conversion, spend, and frequency.

Revenue objective: Build engaging incentives using any data

Our most common integration model involves real-time connections with Commerce Platforms, Customer Data Platforms, CRMs, and ERP / PIMs, with native integrations with leading vendors like Bloomreach, Braze, Twilio, Salesforce Commerce Cloud, and commercetools.

Prior to using Talon.One, our customers typically have 5-10 data points available for use in promotions, usually simple attributes like the category or SKU of the discounted items and the customer’s last purchase date. With Talon.One, our customers average 72 different data points including any segment, RFM, propensity, and inventory data

These dynamic, data-connected offers resonate better with users. That’s why we often see discounted AOV uplift of >20% when switching from basic, legacy promotions to dynamic incentives built with Talon.One.

Customer spotlight: Twinset

Italian fashion brand Twinset uses 30+ RFM (recency, frequency, and monetary value) attributes in Talon.One. This empowers Twinset to leverage data points like the member’s spend sensitivity, activity frequency, and preferred item types to send highly targeted CRM offers like a re-engagement email sequence for boutique shoppers motivated by a great deal.

Revenue objective: Scale personalized offers

Without Talon.One, businesses typically distribute generic discounts to specific audiences. Targeting offers increases operational burdens. We instead enable our customers to manage personalized offers to multiple users in one ruleset. We’ve repeatedly observed >2x ROI when shifting promotions spend to these targeted offers, in line with BCG analysis.

Customer spotlight: Jüsto

Mexican grocery retailer Jüsto works with Talon.One to generate personalized reactivation discounts for members based on their past purchase history. These campaigns, communicated via Braze, increased basket size by 25% and user frequency by 7.2%.

Revenue objective: Communicate incentives in any customer channel

Talon.One’s APIs allow businesses to distribute incentives in the customer’s preferred channels through generic endpoints and integrations with the likes of Braze and Moengage. 

Messages perform better in the user’s preferred channels with compelling, personalized offers. We often see open rates increase >5%, in line with estimates from Forrester’s impact analysis of Braze. At volumes above 500m annual messages, this engagement can drive hundreds of thousands of dollars in increased revenue.

Customer spotlight: HappyFresh

Malaysian e-grocery platform Happyfresh boosted repeat purchase rate by 14% by leveraging Talon.One & Braze for gamified reactivation offers, including Spin the Wheel. For HappyFresh, active loyalty customers tend to place larger or more frequent orders. With this in mind, campaigns like Spin the Wheel are an effective way to increase revenue.

Revenue objective: Manage omnichannel incentives across digital & physical domains

With Talon.One, businesses can centrally manage promotional incentives across all retail channels, with a range of proven configurations to run consistent incentives in-store and offline. This holistic approach boosts customer satisfaction, promotes brand loyalty, and ultimately drives revenue.

Customer spotlight: River Island

Fashion brand River Island uses Talon.One to redeem offers consistently online and in‑store, including at self‑checkout tills. With native integrations between Mercaux (POS), commercetools (commerce platform), and payment via Stripe, the self‑checkout experience is so smooth that 70% of in‑store shoppers now choose the self‑checkout flow.


Revenue objective: Enhance cross-sell and up-sell activities

Talon.One offers can nudge users to try different products or upsize their cart. Advanced bundles can clearly communicate incremental value to the user for a larger purchase. Without Talon.One, businesses often hardcode bundles, or send them equally to all users. Talon.One can feed up specific deals to specific users without overspending on discounts.

Customer spotlight: Eddie Bauer

American clothing chain store Eddie Bauer increased item demand by 38% by using dynamic bundles communicated to specific users. A core part of Eddie Bauer’s strategy was to transition from generic to targeted discounts. This drove a 135% increase in units per order and a 772 bps increase in margin on targeted ‘buy more, save more.’ 

Keen to know more about the value you could gain by investing in Talon.One? Check out our report, “The business impact of Talon.One.”

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Isabelle Watson

Loyalty & promotion expert at Talon.One

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