How can a brand established in 1998 in Canada “fight” with the legends, such as Adidas or Nike, that already have client profiles? Lululemon Athletica provides quality clothes with impressive marketing – the Lululemon affiliate program. The brand builds the community combined closely with the loyalty customer program. That is the reason why the Lululemon rewards program boasts 80% membership in 2022. Let’s check out the strategy of Lululemon behind its expanding brand journey!
Lululemon is one of the best examples of a lifestyle brand offering high-end yoga items. They have developed a robust group of active members who demand well-being. In 2022, Lululemon was in the Top 5 ranking for e-commerce sites that Gen Z consumers rated as their favorites in Piper Sandler’s 42nd. This number proves that building a brand community mixed with a loyalty program works effectively.
The brand community is important and lucrative. So, the Lululemon community has a “soul” and a “lifestyle” to attract the main target audience. Lululemon did well in marketing. The Lululemon affiliate program has increased brand awareness. Let’s follow Lululemon as a case study of leveraging brand community and increasing sales and engagement.
Since 2018, Lululemon introduced a paid loyalty program trial plan. During this time, it has been continuously developed and modified. Customers pay over $100 and would receive more beneficial privileges offers from Lululemon. They include free faster shipping service, access to tailored events, and special member-only products. After completing the pilot program in 2022, the brand launched the official loyalty program.
Lululemon revamped its rewards program in 2023, offering two membership tiers. Joining Lululemon Essential is free. You will receive many valuable and exclusive extras when you buy in-store or online as a member. To access Lululemon Studio, which is a paid membership tier that requires a recurring monthly subscription.
Let’s consider the benefits Lululemon suggested to its members! Free joining at the basic tier but 6 options of offers are practical as a Lululemon rewards member:
The primary goal of the Essential membership is to direct members toward the Studio membership. Let’s examine the benefits of becoming a Studio member.
Besides getting all the benefits above, by joining a Lululemon Studio membership, clients will have more experience with Lululemon. The work-out enthusiasts can be more engaged with the brand and closer to their community:
The Lululemon Studio tier requires the Lululemon Studio Mirror. The purpose is to guide members with various classes and work out at home. And you know what? These mirrors are expensive if clients do not use them regularly, at least $995 for the most basic Mirror. There are 4 types of Mirrors for each workout class: strength workouts, ballet, pilates, tai chi, dance cardio, yoga, cardio, ballet, boxing, and boot camp.
Although, Lululemon’s Mirror device is a flop because of its price and complexity. Being a partnership with Peloton is said to be beneficial for both firms. Since Lululemon has pivoted and wants to offer classes via its Lululemon Studio platform. Peloton is a master at workout content. So it helps Lululemon with a better experience and more quality classes.
Lululemon and Peloton have established a five-year relationship. Peloton provides digital fitness content for LULU, and Lululemon supplies athletic wear.
Lululemon Studio Members can access Peloton’s thousand quality classes on the Studio gadget. Furthermore, the app will grant access to Peloton’s special material to the over 13 million users of Lululemon’s complimentary Essential membership. However, by the end of this year, Lululemon will no longer be selling the Lululemon Studio Mirror device. This brand still intends to maintain and service existing customers who bought before.
The collaborated clothing brand is available in Peloton retail, both in-store and online. This relationship allows Lululemon to reach over 6 million fitness subscribers of Peloton to Lululemon. It helps Peloton instructors will also take on the role of Lululemon ambassadors.
Lululemon and Peloton benefitted from the merger since they returned to their strengths. Selling the Mirror and Studio’s contents is not Lululemon’s strong point. So, collaborating with Peloton has a positive resonance in the sports industry. It is beneficial for marketing campaigns and revenue.
At its core, Lululemon is a marketing expert, especially in Lululemon’s affiliate program, and using the power of the crowd. When clients buy something at Lululemon, it gives consumers trendy layered bags. It is fashionable. Clients use it when they are going to the gym, swimming, grocery shopping, and generally for every occasion. Tote bags are useful accessories for customers, but for Lululemon, bags are for advertising.
Second, Lululemon stores mainly offer yoga classes, besides other workouts. Customers who buy yoga products can learn and practice right at the store, creating a community of yoga lovers. This experiential sales has promoted word-of-mouth marketing, bringing stable traffic to each store.
Following the lifestyle of health and wellness, Lululemon has cultivated a community of workout lovers. If customers cannot join the weekly in-store yoga classes, they can participate through the virtual platform. One of the best channels to do so is through the Lululemon rewards program – both Lululemon Essential and Lululemon Studio.
Providing access to local events is a fantastic experiential reward as an activity. These activities are flexibly held indoors and outdoors frequently. Since they are attractive to the media as spreading the brand community and for customers, which are valuable and interesting. It’s also possible to maintain it online.
Nowadays, people are aware of the importance of a healthy lifestyle. Work-life balance, assumed to be a healthy lifestyle, has been becoming a desire for people to try to achieve. This mindset caused “Athleisure” to emerge as a new fashion trend in recent years. Enabling individuals to wear clothing made for daily life. As well as it has to be suitable for working out.
Caught the key point, although established in 1998, Lululemon leads this fashion trend. In this phenomenon, Lululemon is famous for its unique reaching market methods, concentrating on highly technical, comfortable, and aesthetically pleasing fabrics. These are the principles forming Lululemon’s core values. Building a brand image towards a healthy lifestyle and the philosophy of “Living the sweat-life.”
Lululemon did not spend a thousand dollars on advertising by sports superstars. Instead, it focuses on community marketing, creating an emotional connection between the brand and consumers.
As a store ambassador, Lululemon prefers a yoga teacher or ordinary individuals with a passion for sports. Those are the influencers on social media platforms with a specific number of followers. To create trust and market through the community with the same thoughts in that sport. It is much easier when a brand talks to a small group of people with the same level of knowledge or excitement. While other brands use one message for all kinds of customer segments.
These marketing campaigns work, as proven by Lululemon’s recent reputation on the market. They increase the engagement of consumers, enrich the brand experience and raise purchasing products. The success of Lululemon’s community marketing strategies is demonstrated by a 92% retention rate for the top 20% of their spending customers.
The brand encourages fitness, yoga, and wellbeing as essential components. By sharing this idea with society, Lululemon knows that people believe in their friends more than trust in a brand. Therefore, Lululemon creates a partnership with influencers who are passionate about fitness and wellness. Plus, they are appropriate to the brand’s message.
Lululemon will find famous local yoga teachers, fitness trainers, and influencers. They might not be so famous on social media. In the fitness and yoga field, they have many followers and a certain influence in their community. If these influencers post about Lululemon’s products, brand awareness will expand. And the target audience will pay attention as well. Lululemon uses emotional marketing and its affiliate program as its main strategies.
Lululemon builds its brand community on Lululemon’s social media, which is full of positive and supportive posts from the members. This community spreads a sense of belonging and engagement around the brand through the activities.
Lululemon’s advertising campaign on Instagram is images of people wearing Lululemon products while working out. These activities reach a large number of new customers and boost sales. Lululemon uses these marketing methods to build brand awareness. Plus, they strengthen Lulu’s reputation with the yoga and workout lovers community. As a result, the brand gains a significant revenue increase and a high retention of consumers.
Lululemon builds its brand community on Lululemon’s social media, which is full of positive and supportive posts from the members. This community spreads a sense of belonging and engagement around the brand through the activities.
Lululemon’s advertising campaign on Instagram is images of people wearing Lululemon products while working out. These activities reach a large number of new customers and boost sales. Lululemon uses these marketing methods to build brand awareness. Plus, they strengthen Lulu’s reputation with the yoga and workout lovers community. As a result, the brand gains a significant revenue increase and a high retention of consumers.
Being a Lululemon Essential member, however, this program is not the same as other loyalty programs:
For the other brands, the loyalty program is the place where loyal consumers are so special. They will get many coupons and discounts, or even free items if applied based-point the earning rule. Let the consumers feel that they are important to the brand and appreciated through the messages. And that is the reason why the relationship between customers and brands is close since they feel the special point of the other.
There are no birthday gifts, rewards on special days, or special treatments. Besides getting a 10% cut-off if you join Lululemon’s higher tier. Moreover, this program does not apply any point rewards, nor does it give the financial motivation to boost the purchase-again rate.
But the things Lululemon brings to us are valuable; joining the brand community is how people connect with the brand. Members find the community interesting and deserve to join this healthy community for a long time.
Lululemon’s identity goes beyond selling clothes. It is also an icon of a healthy lifestyle and a confirmation of personal growth when people engage with it. Brand community and images are positive and supportive activities for a better society.
Lululemon has been excellent at bringing people who share enthusiasm for healthy lives. With store owners, this is a precious lesson from a large clothing brand. Pushing a lifestyle marketing campaign is an effective way to attract and gather shared-vision joiners.
Lululemon goes in the opposite direction with other brands. Without offering many discounts, it still appeals to people who find the real value behind the rewards program. Hence, the Lululemon community is bigger day-to-day.
As a store owner, differentiating your store and services from others is the priority. Make your business and your loyalty program unique with BON Loyalty Rewards and Referrals – for merchants to turn one-time buyé into repeat purchases. Let’s try out BON Loyalty with a 3-day free trial and expand your business through the loyalty program.
Install BON Loyalty today and visit our blog for more rewarding customer relationships that fuel your business’s success.
Lindsey Nguyen is a Content Marketing Specialist at BON Loyalty, specializing in digital marketing and eCommerce. At BON Loyalty, she crafts content that empowers Shopify store owners to build and sustain thriving customer relationships through innovative loyalty programs. Her articles, often featured on the BON Loyalty blog, provide valuable strategies and insights that help businesses enhance customer loyalty and increase customer lifetime value.
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