{"id":224432,"date":"2020-03-31T19:10:47","date_gmt":"2020-03-31T13:40:47","guid":{"rendered":"https:\/\/www.qcsglobal.com\/?p=224432"},"modified":"2020-04-18T17:10:19","modified_gmt":"2020-04-18T11:40:19","slug":"7-steps-to-building-a-world-class-luxury-loyalty-program","status":"publish","type":"post","link":"https:\/\/qcsglobal.com\/blogs\/7-steps-to-building-a-world-class-luxury-loyalty-program\/","title":{"rendered":"7 Steps To Building A World-Class Luxury Loyalty Program"},"content":{"rendered":"\n<div>\n<p><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: black;\">Lu<\/span><span style=\"color: #000000;\">xury brand marketers who are considering loyalty programs are often concerned that they won\u2019t align with the image or appeal of the brand. Traditional spend and get loyalty programs reward customers with discounts and couponing, which many luxury brands could argue \u201ccheapens\u201d their offering. However, the most effective luxury loyalty programs in market today go beyond discounting to provide value for members.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><\/p>\n<p><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">In addition, consumer expectations are changing from a luxury retail experience perspective. According to a recent\u00a0<\/span><\/span><\/span><a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/global\/Documents\/consumer-industrial-products\/gx-cip-global-powers-luxury-2017.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">Deloitte Fashion and Luxury Report<\/span><\/span><\/span><\/a><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">, findings indicate:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"margin-top: 8px; margin-bottom: 8px;\"><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">39% of luxury consumers want accessibility to more shopping channels, for example home delivery<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li style=\"margin-top: 8px; margin-bottom: 8px;\"><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">44% want to be rewarded with gifts in exchange for their loyalty<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li style=\"margin-top: 8px; margin-bottom: 8px;\"><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">45% want more personalized services and goods<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">In order to meet customer expectations and drive loyalty, specific strategies should be in place for luxury brands. In this guide, we\u2019ll highlight the unique tactics luxury brands can implement in their loyalty offering to<a href=\"https:\/\/blogs.oracle.com\/marketingcloud\/customer-loyalty\" target=\"_blank\" rel=\"noopener noreferrer\"> encourage greater spend and retention from customers<\/a>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">1. Align program name with its benefits<\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/h3>\n<p><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">Your luxury loyalty program name should convey the prestige of your brand and should indicate a certain exclusivity around membership. For example, the Paris Gallery Group of Companies, which sells luxury products including perfumes, cosmetics, watches and sunglasses, named their program \u201c<\/span><\/span><\/span><a href=\"http:\/\/luxuryclub.com\/about.php?page=about\"><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">Luxury Club<\/span><\/span><\/span><\/a><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">\u201d and Rosewood Hotels Group, a global chain of high end hotels, named their program\u00a0 \u201c<\/span><\/span><\/span><a href=\"https:\/\/www.rosewoodelite.com\/en\/default\"><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">Rosewood Elite<\/span><\/span><\/span><\/a><span style=\"color: #000000;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">.\u201d Both of these names appropriately speak to the status of the members.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">2. Structure the program in tiers<\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">By structuring your loyalty program into tiers, you can offer better rewards and perks for your best customers and motivate new or existing customers to spend and engage more. The highest tier in a luxury loyalty program should be exclusive, and attainable only to a very small percentage (under 10%) of members. The benefits of this tier should be highly desirable to your customers, and should make those who attain it feel prestigious.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">3. Reward customers for spending<\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">Since luxury shopper purchases are high value, not high volume, level up loyalty program members based on how much they spend with your brand per year. The Saks Fifth Avenue loyalty program,\u00a0SaksFirst, is structured across five tiers, with members spending $5,000 per year qualifying for the premier tier, and those sending more than $25,000 qualifying for the diamond tier. Uniquely the program even offers a super exclusive \u201cinvitation only\u201d tier for its biggest spenders.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">4. Surprise and delight \u00a0<\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">A simple way to make your customers feel special is by offering free gifts to commemorate special occasions. Swarovski\u2019s loyalty program,\u00a0Be Swarovski, provides members with a free gift every year for their birthday. Diamond members of the\u00a0Coach loyalty program\u00a0have access to exclusive gifts and personally selected items.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">5. Offer experience-based rewards<\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">Instead of offering discounts and free products, offer your luxury loyalty program members money can\u2019t buy experiences that go beyond the offerings of your brand. High end fashion brand Luisa Via Roma goes beyond fashion rewards to offer loyalty members that reach\u00a0platinum level status\u00a0access to luxury hotel getaways, cooking classes, and exclusive dining experiences. Retailer Neiman Marcus offers members of its\u00a0InCircle program\u00a0access to personalized travel experiences, and hard-to-get tickets and restaurant reservations.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">6. Provide valuable perks and benefits<\/span><\/span><\/b><\/span><\/span><\/span><\/span><\/h3>\n<p><span style=\"color: #000000;\"><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\">In exchange for their loyalty, affluent customers want the types of perks and benefits that make their lives easier. Perks such as free and fast shipping or free giftwrapping in-store are all valued added extras that provide convenience and make members feel special. The Hilton Hotel\u00a0Hilton Honors\u00a0rewards program offers each member across each tier benefits including free Wi-Fi, late checkout and even the option to choose their room \u2013 giving them more flexibility and exclusivity than non-members.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: black;\">7. Provide personalized brand experiences<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/h3>\n<p><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: black;\">Luxury customers want a memorable brand experience in return for their loyalty. Luxury brands can leverage customer data captured in loyalty programs to understand customers\u2019 history of purchases, preferences, likes and dislikes to deliver personalized experiences. Luxury retailer Burberry\u00a0<\/span><\/span><\/span><span style=\"color: black;\"><a href=\"https:\/\/www.forbes.com\/sites\/bernardmarr\/2017\/09\/25\/the-amazing-ways-burberry-is-using-artificial-intelligence-and-big-data-to-drive-success\/#183fe8544f63\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: #c74433;\">leverages loyalty data<\/span><\/span><\/span><\/a><\/span><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: black;\">\u00a0to inform personalized recommendations for customers online and in-store. For example, when an identified customer enters a store, sales assistants use tablets to suggest products to the customer based on their purchase history and social media activity.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><b><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: black;\">Conclusion<\/span><\/span><\/span><\/b><\/span><\/span><\/span><\/h3>\n<p><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: black;\">When the right strategies are in place, a luxury loyalty program can contribute to increased revenue and retention. It\u2019s important to remember affluent shoppers are less concerned with price points and discounts, and are more likely to show loyalty to brands that provide memorable experiences and demonstrate they understand the benefits that are valuable to them, all while making them feel a part of an exclusive, elite group of shoppers.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: 12pt;\"><span style=\"background: white;\"><span style=\"font-family: Calibri,sans-serif;\"><span style=\"font-size: 14.5pt;\"><span style=\"font-family: 'Arial',sans-serif;\"><span style=\"color: black;\"><u>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/u><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/div>\n\n<p><a href=\"http:\/\/feedproxy.google.com\/~r\/itsallaboutrevenue\/~3\/ciMbCro_hbQ\/7-steps-to-building-a-world-class-luxury-loyalty-program\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Luxury brand marketers who are considering loyalty programs are often concerned that they won\u2019t align with the image or appeal of the brand. Traditional spend and get loyalty programs reward customers with discounts and couponing, which many luxury brands could argue \u201ccheapens\u201d their offering. However, the most effective luxury loyalty programs in market today go [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":224433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[17,10],"tags":[],"_links":{"self":[{"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/posts\/224432"}],"collection":[{"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/comments?post=224432"}],"version-history":[{"count":1,"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/posts\/224432\/revisions"}],"predecessor-version":[{"id":224465,"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/posts\/224432\/revisions\/224465"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/media\/224433"}],"wp:attachment":[{"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/media?parent=224432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/categories?post=224432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qcsglobal.com\/blogs\/wp-json\/wp\/v2\/tags?post=224432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}