Unfortunately we don't currently support Internet Explorer. Please upgrade to Microsoft Edge, Google Chrome or Safari
Luxury brands have traditionally used loyalty schemes in a different way from other brands. Because high-end brands don’t give discounts, they tend to use such schemes to offer something more appropriate to their target audiences.
That ‘something appropriate’ could take the form of an invitation to an exclusive event, or perhaps a tiny giveaway. However, with world events like the pandemic having led to greater online activity and less face-to-face interaction, what elements would we advise you to incorporate into our own brand’s luxury loyalty strategy?
One way that luxury brands can adapt is by creating more exclusive products in strictly limited editions. You might even choose to leverage this with a relevant celebrity to give it additional weight.
This type of marketing can enable you to cater to those that are looking for an investment – a ‘need’ that exclusive luxury goods can fulfil.
Levels of membership have always been a popular choice for high-end brands’ loyalty and VIP schemes, as people love the idea of moving up a level to receive better deals.
You can have additional benefits or increasingly exclusive offers the higher up the tiers people go. This type of incentive has an excellent track record of success in the luxury sector.
Many more brands, of a luxury nature and otherwise, are starting to take the route of paid loyalty arrangements. This means the customer paying an additional fee to gain exclusive offers or services.
As this is a paid initiative, the benefits must meet or exceed the expectation of the customer, or they will unsubscribe.
One advantage luxury brands have over companies with a larger customer base is that they can invite people to exclusive events that really are exclusive.
Although luxury brands have many customers, they can still invite a number of them to an event without it being overwhelming. They could run a short competition to narrow down the numbers further, but in many cases, this won’t be necessary.
Many customers will buy more frequently from a brand that offers a privilege loyalty scheme. They like the special deals at exclusive venues that typically come with such schemes, and they will spend more to help keep their involvement in the scheme active.
Such a programme might include a private room at a club, or exclusive access to venues.
As many high-end brands don’t have a significant market share, they might choose to compensate by building a loyal customer base.
If you wish to keep your customers in the loop and maintain engagement, consider adding a little surprise here and there. It could be a last-moment giveaway or an exclusive deal. Many luxury brands have taken this approach in order to gain new customers and engage with their existing ones.
Would you appreciate more direct help and advice in your quest to build a growth-focused luxury loyalty strategy for your brand? If so, you know who to contact; the Skywire London team is available to discuss how we can work closely with our brand to fuel your success.
Stay informed on fashion, luxury ecommerce