This quarter we really found ourselves in the full heat of the pandemic.
With more consumers shifting to online shopping, loyalty has become even harder than before.
Differentiation is becoming more critical and a loyalty program should be a driver of that.
From a loyalty perspective, in the second quarter we saw:
- Some brands launch new or revamped loyalty programs
- A major brand make a critical hire that could elevate the company to new heights
- The publishing of the 2020 Premium Loyalty Data Study
We’ll cover these items in our second edition of Retail Recap for 2020.
Let’s take a closer look:
Loyalty Comes Full Circle at REVOLVE
REVOLVE officials wanted to create an enhanced customer experience. So, they asked their customers what they wanted to see in a loyalty program.
Their customers said they wanted a fun and engaging program that rewards them for shopping with their favorite brands.
Enter the new REVOLVE LOYALTY CLUB program.
REVOLVE, an e-commerce site that focuses on luxury clothing and goods, has introduced 226 new clothing arrivals since the program began.
Company officials crafted a compelling loyalty program leveraging data analytics that offers compelling value, goes beyond rewards points, and provides an attractive tiered approach.
Our CEO, Tom Caporaso, praised the program.
“And while the program has traditional transactional benefits for customers, membership also provides customers with earlier access to sales, stylists and potential involvement in influencer events,” Tom wrote in this article in Total Retail.
With an increasing number of millennials and Gen Z shoppers scrolling their social feeds, “now is a good time for online brands to launch or update a loyalty program — and to look to REVOLVE for inspiration in the process,” Tom wrote.
Tom believes REVOLVE’s program hits all the key triggers in a successful loyalty program.
“By leveraging both transactional and experiential loyalty drivers, REVOLVE developed a tiered loyalty program centered around its core customers,” Tom added. “This has proven an effective approach that’s within reach for your business.”
Premium Loyalty Takes Pole Position at RaceTrac
Officials at RaceTrac, a popular fuel/convenience store chain in the South, wanted to spark engagement with their customers.
Something that included instant benefits, compelling value, and a tiered approach.
As a result, RaceTrac launched a premium loyalty program called RaceTrac Rewards VIP.
RaceTrac Rewards VIP charges members $2.49 per month in exchange for significant fuel discounts whenever they purchase.
This new premium loyalty program offers a tiered approach and instant discounts at the pump that create instant gratification. These are all elements of a winning premium loyalty program.
When customers literally see the discount on the gas pump screen, it creates the instant benefit, along with a feeling of instant gratification, and instills an emotional connection.
New Lowe’s Chief Brand/Marketing Officer Can Help Drive Loyalty
As Lowe’s battles its longtime competitive nemesis, Home Depot, fiscal results show that the former is pulling closer.
And one more key asset Lowe’s has going for it is Marisa Thalberg, who in February became the company’s executive VP, chief brand and marketing officer, after transforming Taco Bell.
Marvin Ellison, Lowe’s President and CEO, praised Thalberg.
“Marisa is a world-class marketer and leader, and we are thrilled to have her join the Lowe’s leadership team,” Ellison said. “Marisa brings extensive experience in building culturally resonant brands and delivering business value through marketing innovation and fresh thinking to inspire and engage customers.”
Ellison is confident Thalberg “will lead our brand into an exciting new chapter for our customers and associates.”
Our CEO Tom believes Thalberg’s hiring could be highly impactful for Lowe’s.
“Marisa Thalberg has a major opportunity to provide that out-of-the-box creativity Lowe’s recently said it’s looking for and to tackle some of the changes that need to be made to keep the retailer relevant,” Tom said in this Forbes article.
FULLBEAUTY Launches Premium Loyalty Program
Premium loyalty is all about creating more value for your customers.
Officials at FULLBEAUTY Brands believe that as well and that’s why they launched a premium loyalty program called Woman Within Member Rewards.
FULLBEAUTY Brands is the fashion authority for plus-size women and men seeking fashion inspiration, style advice, and clothing tailored to their individual needs.
The program, which carries a $14.95 monthly fee, includes:
10% back on every purchase from the FULLBEAUTY Family of Brands, including Woman Within, Roaman’s, Jessica London, Ellos, KingSize, BrylaneHome, and FULLBEAUTY
5% back on purchases from 1,000+ Marketplace retailers
Unlimited shipping and return shipping rebates at the FULLBEAUTY Family of Brands
Shipping and return shipping rebates when customers shop with Marketplace retailers.
The 2020 Premium Loyalty Data Study
This year revenue has taken on added importance for retailers.
And one of the key factors tied to revenue is customer loyalty.
But as consumers shop with unlimited choices, earning their loyalty becomes a bigger challenge.
Acquiring and retaining loyal customers is a loftier task now than ever before.
How can you increase revenue, spark elevated engagement, and build long-term loyalty with your best customers?
Answers to those questions and plenty of others can be found in our 2020 Premium Loyalty Data Study.
The data study:
- Explains premium loyalty and shows how these programs are different than traditional ones
- Looks at how these programs increase engagement and build brand advocacy
- Examines whether consumers would pay to join a premium loyalty program of your own
This data study offers you insights directly from actual consumers about how they feel about premium loyalty programs, what they find most valuable, and whether these programs increase long-term loyalty.
If you’d like to learn more about premium loyalty, download the data study for free here.
Takeaways from Q2
In the second quarter saw some brands launch or rethink their loyalty programs that offer instant benefits, clear value, and spark engagement.
During this period, which brought an unprecedented shift toward online shopping due to the global pandemic, brands are seeing the value in updating their respective loyalty programs.
When brands combine transactional and experiential elements in their loyalty programs, it creates compelling value and elevated engagement.
How are you creating compelling value and elevating engagement for your customers that will carry through the third quarter and beyond?