I frequently get the question “Do loyalty programmes work in luxury fashion?” as a loyalty expert. Let me tell you something, though: loyalty schemes for high-end apparel aren’t just a myth. It is possible to implement a reward system in this sector without devaluing the brand image; you just need to use the proper strategy. You may constantly modify loyalty programmes to suit your demands, just like you can with any other item in your toolbox.
Customer interaction is the life and death of luxury fashion. People come to you for VIP treatment they can’t get anyplace else, not for discounts or bonus points they can receive elsewhere. This lesson is especially important in the post-COVID-19 era, when consumers are more eager than ever to have memorable buying experiences. Luxury fashion loyalty programmes must put an emphasis on life-changing experiences if they want to differentiate themselves and create long-lasting client loyalty in the present market.
The success or failure of luxury fashion depends on customer engagement.
People come to you for the VIP service they can only get from you, not for deals or rewards they can obtain elsewhere. In the post-COVID-19 era, when consumers are more eager than ever to have exceptional shopping experiences, this lesson is extremely crucial. If luxury fashion loyalty programmes want to stand out from the competition and foster long-lasting customer loyalty in the current market, they must prioritise life-altering events.
What Is a Loyalty Program for Luxury Fashion?
Exclusiveness is the one term that sums up luxury fashion loyalty programmes best. Like everyone else, wealthy customers want to be rewarded, but they also want to be treated more favourably. As a result, the emphasis of the reward programme should be on advantages and gifts that are either more valuable or reserved for the upper echelons of the member base.
Luxury membership programmes tend to focus more on experiential rewards than material ones when it comes to gifts, such as designer clothing that is otherwise unavailable for purchase, signed items from well-known fashion icons or influencers, and partner rewards from upscale dining establishments and hotels.
Regarding special treatment, high-end fashion loyalty programmes include VIP tiers that are exclusively open to the top 100 spenders. A high customer lifetime value is necessary to join such an elite group in exchange for excellent standing in the neighbourhood.
The Biggest Challenges to Luxury Fashion’s Customer Retention
One of the most significant issues facing luxury apparel firms is the lack of personalisation. The customised experience must be scalable and easily accessible across all channels in order to cultivate top spenders and offer them a taste of exclusivity. Other difficulties include:
Most customers only make one purchase, which causes significant churn rates.
Store employees may know clients by first names in the top group, which is already quite loyal, but there is little to no motivation to keep first-time purchasers coming back.
Luxury brands frequently fear that discounts and other earn-and-burn programme aspects would devalue their brand.
Intelligent Customer Retention Rather Than Discounting
When a high-end clientele reaches a significant milestone, they want to be indulged. By providing unusual presents, distinctive services, and a tailored experience, you may easily meet their expectations. Everyone will adore it!
We also enjoy teaching others, so feel free to schedule a demo or send us an RFP, and we’ll demonstrate how our loyalty platform may benefit your company.
Don’t forget to download Antavo’s Customer Loyalty Report 2022, a comprehensive report that offers a wealth of data and upcoming market trends to assist you in navigating the world of next-generation loyalty programmes.