What’s the value of loyalty programs for fashion retailers? Loyal Guru’s cofounder and CTO Javier Fernández Riverola was featured in Modaes fashtech section this month, sharing how fashion companies consolidate their brand values through their loyalty programs, while also increasing sales and revenue.
Loyalty programs in the fashion industry have evolved from the personal touch of local multi-brand stores to the data-driven strategies of global chains.
In the past, shopkeepers knew their customers personally, but now businesses aim to replicate that experience through loyalty programs that manage vast amounts of data, establish customer profiles, and boost conversion rates.
These programs involve 3 steps: collecting customer data, creating real-time profiles, and utilizing the data for targeted marketing campaigns.Javier Fernandez Riverola, co-founder and CTO of Loyal Guru
By offering personalized promotions, such as birthday discounts or incentives for inactive customers, retailers strive to increase customer engagement and reinforce their brand.
Implementing loyalty programs not only benefits businesses financially but also serves as a means to align with customers’ values.
For example, retailers can reward environmentally-conscious consumers who recycle, demonstrating a shared commitment to sustainability. The return on investment in loyalty programs lies in customer acquisition and increased average spending.
By effectively managing customer data and harmonizing online and offline channels, retailers can optimize their marketing efforts and enhance customer satisfaction.
Many major fashion companies have implemented loyalty programs to incentivize customer engagement and foster brand loyalty. These programs offer various benefits, such as points accumulation across different channels, discounts, and social initiatives. Companies like Mango, Desigual, H&M and Gap have also embraced loyalty programs to provide exclusive perks and unify their brand offerings.
The future of loyalty programs lies in the integration of online and offline channels, presenting new opportunities for retailers to enhance customer satisfaction and drive business growth.
To read the full article (in spanish!) click here
Modaes is the leading newspaper for economic information and news around the fashion industry in Spain. They specialize in generating content, providing services and developing activities that meet the needs of professionals in this important economic sector.