9 Best Fashion Loyalty Programs & What Makes Them Unique
Loyalty programs are a proven retention strategy that leads to an increased number of sales in retail. And the fashion industry is no stranger to these, given the extreme level of market saturation.
However, the best fashion loyalty programs rely on more than just discounts to increase their customers’ CRV. Instead, fashion brands employ multiple reward strategies that emphasize the exclusivity of their products.
In this article, we will take a look at some of the best fashion loyalty programs employed by successful brands and what makes them stand out from the competition. The main takeaways of each program should be a great source for ideas if you are trying to create a fashion loyalty program of your own. Let’s dig in.
Top loyalty programs for fashion brands
To begin, let’s check some of the most popular brand’s fashion loyalty programs.
The fast-fashion Swedish giant overhauled its loyalty program in 2019. The goal was to propose a more fitting loyalty mechanism to their customer base. So, to complement the classical earn-and-burn point program, the brand added VIP and exclusive experiential bonuses.
- Loyal customers receive early access to exclusive collaboration collections with world-renown designers. Considering these are usually sold out in hours, it’s a coveted perk by many fans of the brand.
- A double-tiered membership adding additional perks for big spenders. The second tier (Member+) doubles down on exclusivity perks with priority access to events and VIP experiences.
Referral programs are often one-sided, and usually only reward existing members. However, London-based clothing retailer MatchesFashion goes against this trend, offering a 15% discount to both the referral and the referrer.
- Referral marketing is a proven concept, as people pay 2x more attention to brand recommendations from their friends than from traditional marketing channels.
- Unlike fixed-price discounts, a percentage-based rebate is more appealing for larger purchases and encourages increased spending.
- Through the increased incentive, new customers are easily converted into promoters of the brand.
Madewell proposes one of the best fashion loyalty programs on our list as it shows a deep understanding of their customer base’s needs and wishes. This leather-and-denim fashion brand offers free personalization of their items for loyal customers which underlines their uniqueness.
- Multiple reward opportunities including a tiered system, double/triple points days, birthday gifts, and free shipping add monetary value to the program.
- On the other side of the spectrum, early access to collections or free embroidery and stampings on items add personal value and exclusiveness.
Based in London, this shoe fashion retailer offers one of the best fashion loyalty programs in its niche. In addition to a classical point-earning scheme, it uses customer engagement techniques by rewarding customers for social interactions.
- The program encourages loyal customers to review their products by rewarding them with points. This proven method allows new customers to be much more confident with their initial purchase.
- In addition to social interaction, Van-Dal also plays on the value of the purchase. Once orders exceed a certain amount, extra points can be earned. This, in turn, has a psychological effect on the customer that they are gaining by spending more.
Nordstrom has one of the best fashion loyalty programs that owes its success to its multi-tiered format. It’s a prime example of an addictive loyalty program, making customers yearn for more exclusive perks as they advance through tiers, each level offering its share of exciting rewards.
- Higher tier loyal customers gain access to luxury benefits such as in-home stylists and invite-only events. This adds an “elite club” feeling to the program that customers can unlock by spending more with the brand.
- The program adds additional tiers for Nordstrom debit and credit card owners, allowing them to earn double or triple points for each dollar spent.
Urban Outfitters - UO Rewards
This fashion retailer aimed at millennials employs one of the best fashion loyalty programs by directly targeting it at their preferred demographic. Their success lies in offering no less than 8 different ways of earning rewards and emphasizing millennial values such as social engagement.
- The program has 3 different tiers, with each level adding perks such as surprise rewards or $100 monthly draws, or increasing the speed at which points are earned.
- To increase its online presence, OU rewards its customers for writing reviews. Furthermore, it allows them to participate in contests through hashtags on social media, gamifying the shopping experience.
Best Luxury fashion loyalty programs
Luxury brands may have a different approach than regular fashion retailers regarding their loyalty programs. Let’s have a look at a few prime examples.
The German luxury pret-a-porter deviates from the customary points accumulation or discounts seen in some of the other best fashion loyalty programs. Instead, it focuses on the customer experience (as the name suggests) and the exclusiveness of the brand.
- The program goes away with the tiered approach and considers every customer worthy of the best experiential rewards the brand can offer from the beginning. This way, each customer is equal, advocating inclusiveness after the first purchase.
- Rewards are centered around improving the personal experience of the customer with the brand with VIP events and free tailoring services. Besides, small perks such as no-receipt returns show the brand’s understanding that their customer’s time is a precious resource.
The American department store takes the tiered approach of the best fashion loyalty programs very seriously. As such it proposes no less than 8 different levels (circles) of loyalty, with the President and Chairman circles at the very top.
- The tiered system encourages repeat spending, with each level adding small quality-of-life benefits to shoppers.
- The two top tiers offer the most luxurious rewards, including in-store dining, personal jewelry engravings, and a travel concierge to ensure the best experience possible.
The CSC loyalty program isn’t free like most programs on our list, as the membership costs €25 per year. However, it remains one of the best fashion loyalty programs available, due to the member-only collections and value-filled perks it offers.
- The brand creates unique jewelry collections specifically destined for its exclusive members. This scarcity creates perceptible monetary value for collectors and resellers.
- In addition to the classy Swarovski magazine, members receive a unique crystal gift, otherwise not available for sale.
In this article, we went over some of the best fashion loyalty programs in the industry. To sum up the main takeaways, we can conclude:
- Tiered programs add a sense of hierarchy, adding incentive for customers to spend more in order to reach a coveted social status.
- Nurturing the brand’s values allows you to differentiate from the competition that offers simple discounts and earn-and-burn systems.
- By offering experiential rewards, VIP access, and unique offers, fashion brands can create long-lasting relationships with their customers.
- A paid fashion loyalty program can work very well as long as the benefits offered are worth the price of admission.
We hope that this list of the best fashion loyalty programs and their takeaways will come in handy when you proceed in creating a program for your brand.