Even though the news that ASOS is ending its well-liked reward programme was unexpected, it instantly gained attention in the e-commerce community. This has made me consider ASOS and their since-discontinued loyalty programme.
I wondered why the British fashion juggernaut decided to do away with such a well-liked element. As I was putting the puzzle together, I came to the conclusion that ASOS’s business model had much broader ramifications and could influence how customers are retained in the future.
On the one hand, the fashion shop is correct in that traditional loyalty strategies frequently fall short of meeting specific organisational objectives.
In the long run, the replacement ASOS reward programme, which is a subscription-based delivery service, would not have the same retention potential. I’m confident that employing strategies like Recognition Loyalty, which is highly personalised and goes above and beyond transactions to engage customers, is the way to go.
A-List, bye, and hello, ASOS Premier
What took place behind the scenes, then? The goal of the long-running ASOS loyalty programme, A-List, was to encourage purchases through a transaction-focused loyalty programme.
Customers earned 5 ASOS points for every £1 spent, which they could use to advance to higher tiers and gain access to a variety of benefits like discounts, entry into contests, and prize drawings. Customers loved ASOS membership, as seen by the social media outcry that followed the announcement.
The public initially mistakenly blamed the discontinuation on the decline in popularity of reward programmes. It soon became clear, though, that A-List had been abandoned in favour of ASOS’s main client retention initiative.
As opposed to a reward programme, ASOS Premier is a subscription-based delivery service that charges clients £9.99 annually for unlimited next-day shipping. By giving previous a-List members a £10 ticket that may also be used for the delivery service, the company encouraged customers to move to Premier.
If I were in their shoes, I would have integrated the two and added a subscription option to the loyalty programme. Customers actually prefer to see their membership club grow and add new features on a regular basis. Throwing away a loyalty programme that was otherwise promising just makes customers bitter.
The Next Step in Customer Retention Is Loyalty Recognition
Being the first brand that comes to customers’ minds when they think of buying is the key to customer retention, according to acclaimed author, fashion designer, and consultant Joanne Yulan Jong. Because they don’t engage customers outside of the purchase cycle and instead spend money rewarding behaviours that loyal customers would have done regardless, the majority of loyalty programmes are ineffective today.
On the other hand, recognition loyalty provides brands and merchants with a number of ways to communicate with customers. Among them, transactions are merely one.
Consumption of content Making regular visits to your company’s blog or social media page more rewarding increases brand awareness and exposure to hot products among consumers.
Gamification: Offering incentives for completing customer profiles and disclosing personal information will help you understand VIP members’ preferences.
Experience-based benefits: Go beyond discounts and points because the next era of consumer loyalty is here. Just take a look at LuisaViaRoma and Represent, who both honour their top clients with unique presents and invitations to prestigious events.
Identified values Engagement can be raised by doing something as simple as asking customers to take photos of themselves wearing your brand’s clothing. Actually, it would go very well with diversity, one of ASOS’s guiding brand ideals.
the impression of exclusivity and scarcity ASOS has partnered with other designers in the past to release limited edition items. Furthermore, by granting ASOS Premier customers early access to new releases, they had planted the seeds of a particular interest group.
Review of ASOS: The Final Verdict
Considering that ASOS claims to be developing even better ways to reward customers, it’s important to note that the firm does not completely rule out the prospect of having another loyalty programme. It is unclear whether this will be a standalone service or an upgrade to Premier.
If you find yourself in the same situation, remember this: never remove a person’s features. Learn how to improve your current tools for client retention and test out fresh approaches like Recognition Loyalty. We are always available for a private discussion if you need additional guidance on how to interact with customers more effectively.