A fashion loyalty program is meant to bind people to a brand. Many programmes, however, mainly hand out discounts, often to customers who would have bought anyway. That costs margin and rarely creates real closeness.
With a team of 22 people, I am responsible for marketing across several European markets, and CRM and loyalty are part of that. The question of what truly binds people to a brand accompanies me constantly.
- Discounts buy transactions, not loyalty.
- Good programmes take effort away.
- Experiences and service stay in memory longer than points.
- Data from the programme belongs in the service of customers.
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Why a fashion loyalty program cannot rely on discounts
In its loyalty research, Bain & Company distinguishes between programmes that merely bribe customers with rewards and those that build genuine loyalty (see here: Bain & Company, Turning Rewards into Loyalty). What matters is whether a programme improves the experience and deepens the relationship with the brand.
In fashion this weighs especially heavily. Anyone who gets customers used to discounts teaches them to wait for the next sale. A fashion loyalty program that works only through percentages ends up weakening the very brand it is meant to strengthen.
Service and experience instead of points
A good programme takes effort away. Saved sizes, uncomplicated returns, reservations in store or an early look at new collections mean more to many people than yet another voucher.
Experiences bind even more strongly: an evening for the new collection, an alterations service in store, personal style advice. Such moments create memories, and memories connect people with a brand, not with a price.
Data in the service of customers
A fashion loyalty program generates a lot of data. Its value lies in serving customers: fitting recommendations, less random advertising, a note on care or repair. How brands handle their own data responsibly is something I describe in my article on first-party data.
How loyalty can be recognised
The number of members says little. More revealing is whether they come back more often, recommend the brand and buy less often only in the sale. The Net Promoter Score, developed by Bain, is a simple place to start.
Think of a fashion brand that replaces the member discount with free alterations and early access to new collections. Fewer people join for the price alone. The goal is a community that returns more often and buys more often at full price.
A fashion loyalty program succeeds when it would be attractive even without a discount. It makes shopping easier, creates experiences and uses data in the interest of customers. This is how loyalty emerges that does not end with the next sale.