Deep changes have taken place in the business as a result of the emergence of fast-fashion brands that provide styles comparable to more premium labels at significantly lower rates. There are currently at least 52 micro-seasons of fashion! Additionally, shoppers now anticipate coupons due to frequent markdowns, which reduces the effectiveness of this kind of inducement. One thing is now as obvious as the summer sky: providing excellent items and discounts is no longer sufficient to keep clients. In order to engage consumers, brands must provide benefits like fashion loyalty programmes and develop a compelling brand narrative.
What Is a Loyalty Program for Fashion?
Fashion brands and retailers’ demands and distinctive qualities guide the development of fashion loyalty programmes, which are strategies for consumer retention. Due to the wide range of programme structures and features that are uncommon in other sectors, such loyalty solutions are first and foremost instantly identifiable. Among these are reward programmes, early product release access, improved return policies, in-store stylist appointments for high-tier members, and so on.
Fashion loyalty programmes are also cutting edge in that they frequently recognise non-transactional participation. For instance, companies might provide rewards to their customers for returning used items, wearing apparel with smart tags, or taking part in Instagram competitions.
It’s important to note that fashion incentive programmes place a strong emphasis on omnichannel involvement. They work to develop a single consumer profile, which fuels personalisation, by enabling app-based experiences as well as store-specific marketing and technology.
The Greatest Challenges in Customer Retention for Fashion Brands and Retailers
By 2023, it is anticipated that the worldwide online fashion market would be worth $672.71 billion. Encourage customers to spend all of their fashion spending at their stores is the top priority for fashion businesses, especially those in the quick fashion sector. But implementing a VIP programme is only the first step in enhancing customer lifetime value (CLV).
A customer loyalty programme can also improve the following KPIs:
Reduce customer churn by implementing a reward system that enables clients to advance through the programme gradually. Tiers, medals, and loyalty groups together with gamification features encourage participants to connect with the programme on a daily or monthly basis.
Increase foot traffic: Making use of store-specific advertising, receipt scanning, POS systems, digital loyalty cards, and other technologies makes sure that customers have a good time when they are in the store, and most importantly, that it is convenient.
Demonstrate eco-awareness: Modern consumers desire to support businesses that value the environment. Fashion brands can show their commitment to sustainability by rewarding customers who donate used clothing or money to charity.
7 Motivating Loyalty Programs for Fashion Retailers & Brands
Let’s take a look at some of the biggest fashion loyalty programmes in the US, Europe, and Asia to get a better idea of how each of these elements functions.
Membership programme at H&M
Widely renowned in the fashion industry, H&M unveiled a rewards programme that meets all the criteria for a cutting-edge fashion loyalty programme.
Customers gain one point for every dollar spent, and 200 points will earn them a $5 discount.
As a welcome present, newly registered members get a $10 discount; later on, more special offers become available.
Members have access to birthday deals, free online returns, and exclusive shopping events.
Just Be – Benefits
Simply Be, a division of N Brown with its main office in Manchester, is the go-to online destination for size 12-to-32 ladies who love fashion.
Modern loyalty programmes give individualised benefits based on each customer’s contacts with the company in the past, rather than having customers collect points or scan loyalty cards.
After conducting a study of current customers, carefully chosen rewards were made with the customer’s well-being in mind.
Simply Be’s collaborations with companies in the beauty, fitness, travel, entertainment, and fine dining industries enable some of the benefits.
Coin – Nicce
Nicce, a 2013 streetwear startup, targets the young, urban market. The business only has one physical location and is primarily online. But Nicce delivers everywhere.
In the loyalty scheme, every £1 spent yields 5 N coins.
A discount of £0.01 is given for each point.
A significant number of N coins are awarded for opening an account, suggesting a friend, and completing particular promotional tasks.
Urban Outfitters’ UO Rewards programme.
Urban Outfitters is a global lifestyle shop that caters to young adults with a product mix that includes women’s and men’s fashion apparel, footwear, beauty, and wellness items.
There are three tiers in the UO Rewards loyalty programme.
For making purchases, signing up, reviewing products, and using the UO website or app, loyalty points are awarded.
Early product access, anniversary discounts, and a chance to win a prize in hashtag competitions are all incentives for members.
LBCommunity+: Love, Bonito
Love, Bonito, one of the biggest omnichannel, vertically integrated women’s fashion businesses in Asia, caters to contemporary Asian women both online and in physical stores. LBCommunity+, its loyalty programme, goes all out in terms of exclusivity:
Birthday gifts, early access to merchandise and exclusive sales, as well as surprise events, all of which increase in value based on the member’s tier, are available.
In one of their Singapore stores, Gold-tier members are entitled to a free styling appointment with a brand influencer.
Antavo’s LBCommunity+ platform enables loyalty programme members to use the Mobile Wallet to quickly accrue points at any retailer.
Anthroperks at Anthropologie
An American clothes retailer called Anthropologie has more than 200 locations. With a few significant variations, their loyalty programme, Anthroperks, is conceptually similar to Simply Be’s.
There are just benefits available to registered members; there are no tiers or points.
Participants benefit from free shipping on items over $150 and paperless returns.
Early access to new collections and birthday prizes are further advantages.
Treasure at TK Maxx
A series of retail establishments called TK Maxx offers gifts, household goods, and trendy clothing and accessories. TK Maxx serves as an example of how your brand may still profit from a fashion loyalty programme even if fashion isn’t your primary line of business.
TK Maxx Treasure provides surprise-and-delight prizes based on purchases.
Customers can use their membership card to redeem their points on a monthly basis.
The programme provides access to flash events and in-store VIP experiences.
Dress to Impress
High CLV, a wealth of customer data, in-store technology, and gamification are all advantages that retailers and brands with loyalty programmes may enjoy with a carefully thought-out reward structure. Please feel free to include Antavo in your RFP for your loyalty programme if you are considering the capabilities we provide as a pure-play loyalty provider.
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.