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What Loyalty programs are worth in the Fashion Industry

Investing money and human resources to keep customers engaged, is a challenge many fashion retailers are facing nowadays to remain competitive. Consumers are more likely to buy in stores that offer them attractive promotions and that’s why purchase decisions are increasingly based on low prices.

Big data as a way to get customer insights

Many fashion retailers recognize the opportunity to get customer insights by implementing loyalty programs.

Even though many customers express they do not feel comfortable with companies analyzing their movements and transactions, a research from Nielsen has shown that customers are willing to share data with companies if they get customized promotions. 91% of customers said they are more likely to shop when it comes to relevant offers and recommendations.

Get to know your customers first

With the purpose of offering customers what they want, getting to know them first it’s key for retailers. This is why brands must work within a system that allows them to collect customer insights and use them to respond to their needs at the right time. And loyalty programs are, without a doubt, an excellent way to collect customer data and connect with a consumer increasingly omnichannel.  

Omnichannel Loyalty programs as a way to connect with customers

Omnichannel Loyalty Programs are key to build a profitable sales and Retention Strategy. According to KPMG’s survey on customer loyalty, 81% of customers think being part of a loyalty program encourages them to spend more, while 78% of customers would switch companies if they got offered a better program. 

In addition to this, modern Omnichannel Loyalty programs allow retailers to use their schemes as business levels, rewarding customers with points for their behaviour, and allowing customers to choose how to spend them. This flexibility makes it easier to keep customers engaged and make sure they keep coming back.

Omnichannel capabilities drive a better engagement and more sales

Loyalty programs are not only about the brand and the customer, loyalty programs have become a way to connect with customers when shopping isn’t even on their mind. Retailers are getting more and more creative with loyalty, even going as far as rewarding customers for their behaviour and no longer for the products they purchase. One great example is Mango, which rewards customers for recycling used clothes, making customers feel the brand is part of their lifestyle, which in the end generates more engagement from the customers. 

In the end, competition in the retail industry is increasingly harder and brands must continue to search for new ways to be closer to customers and most importantly, strategies that translate into increasing sales.

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