The fashion loyalty program always tries to keep up with the latest trends and build loyal customer bases. Now that we live in a digital world with lots of choices, brands need to do more than just make stylish collections to win people’s hearts (and wallets) over time.
In this blog, we’ll examine the top 19 best practices for fashion reward programs and discuss why they’re so successful.
A fashion loyalty program is a marketing strategy for clothing, shoes, and accessories brands to reward customers for loyalty. These programs encourage customers to buy from them again and build deep relationships with some key features:
Loyalty program rewards for fashion customers will bring the following main benefits:
The first direct benefit is increased customer retention. Research from The Bond Loyalty highlighted this point: 85% of shoppers feel loyalty programs encourage brand loyalty.
It also means that the higher average order value is the second gain. According to a study by Antava, members who claim points spend 3.1x as much each year as members who don’t.
Moreover, customer loyalty in the fashion industry led to more brand loyalty and good word-of-mouth marketing. This is because loyalty programs offer exclusive rewards and personalized experiences.
Lastly, 65% of shoppers say they would share their information for personalized offers that add value, according to Inmar Intelligence’s research. This means that reward programs can help you learn better customer insights.
To make a fashion reward program that works like the H&M Membership we showed above, you will need the following:
In the next section, we will examine 19 examples of successful fashion loyalty programs to understand better how to install the important elements we discussed above.
In this part, we’ll explore various of types of fashion loyalty programs, from rewarding points-based systems to exclusive access. These programs offer valuable insights that inspire you to craft your unique and effective loyalty program.
With more than 160 million active members (Q2 2022 report’s data), the Nike Membership program is at the top of our customer loyalty list in the fashion sector.
We believe any sneaker will want to join the Nike Membership program since it provides access to member-only activities, unique deals, and personalized Nike products.
So, why are they so successful?
We think Nike Membership’s success is due to two main factors: a private community and rewards that capture customer insight.
A Big Online Brand Community Study shows that 84% of customers care about the kind of community a brand has. Especially when it comes to sports like Nike, where everyone’s rocking activewear, it’s natural to want to connect with folks who share your style and goals. Nike gets this within their Nike Run Club and Nike Training Club apps.
But Nike Membership isn’t only about feeling connected. The rewards program is seriously personalized and exclusive. As a loyal member, you get special access to only member releases. This makes us feel like VIPs with access to the coolest sneaker store.
Next is the Sephora Beauty Insider program, a successful tiered loyalty program in the US.
The rules of the Sephora program are simple: members will receive 1 point for every $1 spent. Membership will be based on the customer’s spending level. Rouge is the highest-ranked member; they pay $1,000 annually and get first access to all goods.
So, why are they so successful?
What we like about this program is that they have fashion loyalty programs explained very easily. As you can see in the image below, Sephora created a membership-level table to inform customers of the benefits they receive.
Like the Nike Membership we discussed earlier, Sephora Beauty Insider has its community. We love it because here, beauty lovers can chat with each other, share tips and tricks, and even find answers to frequently asked questions (FAQs) from other members.
After becoming a member of the H&M loyalty program, we can collect 1 point for $1 every time we shop online or offline.
H&M Member is a tiered loyalty program with two membership levels: Basic and Plus Member. Each level has different accompanying benefits, as shown in the image below.
Why are they so successful?
Among the 19 best practices for fashion loyalty programs mentioned in this blog post, H&M Membership in the US offers free online returns for loyal members.
We appreciate this benefit because it is shown fashion as the highest revenue-generating vertical for e-commerce websites. Therefore, H&M’s free online returns benefit is a beautiful guarantee of the era’s online shopping trend.
Zara is one of the biggest and most well-known fashion companies worldwide. Members of the Zara Club can see the newest designs before anyone else, which gives them a lot of value among fashion-forward buyers.
Also, Zara sends gift cards each time a member reaches 200 points. This present could be a cash coupon or a discount coupon, and these benefits make Zara successful.
Similar to Sephora Beauty Insider, Urban Outfitters (UO) Rewards is a fashion-tiered loyalty program. UO members receive $5 in rewards for every 100 points.
We appreciate Urban Outfitters because they allow members to earn points through many actions, as shown in the image below. What we like most is that using a byo bag to shop at the store will receive 50 points (the highest in the action table). It shows us that UO takes environmental protection very seriously.
Next is the Nordstrom Rewards program, a luxury fashion brand. For every $1 Nordstrom members buy, they will receive 1 point back. If paying with a Nordstrom debit card, $1 will receive 2 points back, and paying with a Nordstrom credit card will receive 3 points.
Reward points can be converted into discounts or exclusive member content and experiences.
Why are they so successful?
Similar to Nike Membership, Nordstrom understands that its loyal customer group is fashionistas. So, it’s clear that the value of this program comes from the opportunity to participate in anniversary sale fashion shows and icon-only events, which is an attractive reward that goes beyond regular discount codes.
Levi’s is a fashion brand with a global network of shops, so the requirements for accruing points and using reward points in this program differ per nation. However, in general, each member will earn points for every transaction.
For Levi’s Red Tab Member Program in the US, members will have benefits such as free shipping, early access to sales and promotions, personalized birthday gifts, and free customization and repair of Levi’s products.
Why are they so successful?
It can be seen that Levi values personalization. We especially like the benefit of free customization, especially for items like fashion, where it’s a convenient and neat bonus.
In addition, most of Levi’s stores are located in large malls, so year-end sales will be extremely crowded with customers. That’s why having early access to extensive sales days is Levi’s most practical benefit.
Next, we will come to GAP Good Rewards, like Sephora Beauty Insider, which is also a tiered loyalty program. GAP members will have two ways to earn points, as shown below:
Did you notice in the image above that GAP mentions that members can receive 1 point for every $1 spent within their “family of brand”? That is also a special feature of the GAP program compared to the programs we mentioned before.
Their family brand includes four main wartime brands:
So, GAP Good Rewards is one program for all four fashion brands. For us, this is a huge plus. One for all allows customers to accumulate points and climb tiers faster and helps members avoid creating multiple member accounts.
Madewell Insiders is also a tiered program. Like the points system for fashion loyalty mentioned earlier, every $1 spent earns the member 1 point.
The program has three tiers: Insider, Star, and Icon. The highest spending level is $1000+, as shown in the image below. We can say Madewell Insiders is the only program in this blog post that directly mentions the “Skip the Line” perk for the highest-level members at special events, and it makes them special.
Sweat Collective is a varied group bonded by a passion for an active lifestyle and a love of Lululemon. Here are what makes Lululemon Sweat Collective special:
We think Sweat Collective is successful because it builds a community like Nike Membership for fitness instructors, athletes, and coaches who love Lululemon.
Adidas is a household name in the athletic apparel industry and a direct competitor to Nike. Both brands have cultivated strong communities through dedicated workout app ecosystems.
However, the Adidas Creators Club sets itself apart by offering exclusive experiences to its members. Their members were allowed to win signed Predators and receive personal messages from other famous athletes. These unique perks are a significant advantage for Adidas and something you might not find elsewhere.
Uniqlo U Membership stands out for its unique approach to loyalty rewards. Unlike traditional programs that rely on points, Uniqlo U focuses on offering members direct value through shopping coupons.
This streamlined system eliminates the need for points accumulation and simplifies the reward process. Members scan their unique Membership ID barcode at checkout to track purchase history and unlock exclusive coupon benefits.
This focus on convenience caters to today’s busy consumer, eliminating the burden of carrying physical cards or memorizing multiple IDs. With a quick scan, Uniqlo U makes earning rewards effortless.
At number thirteen on our list of fashion loyalty programs is Coach Insider, a reward program established by the famous American fashion company Coach. The program focuses on leather products, including handbags, luggage, and accessories.
Members of the program are rewarded with double points for in-store and online purchases. After earning these points, you can exchange them for various cool rewards, as shown in the image below.
Coach Insider uses social media to create a committed brand community, much like Sephora’s Beauty Insider program. Members are encouraged to post images of their Coach purchases on Instagram using #coachny. As of July 2024, there were over 211,278 posts, which shows that this approach has built a strong brand following.
We can assume that Coach has carefully designed its program to appeal to the people it wants to reach. They understand their customers, primarily younger demographics that use social media and desire social recognition programs for fashionistas, by focusing on Instagram interaction.
PINK Nation cultivates a youthful, energetic, and fun brand personality, distinct from Victoria’s Secret’s more glamorous and seductive image. Their loyalty program offers a points-based system, awarding 5 points for every dollar spent.
The program is structured in tiers: Member, Silver, and Gold. Each tier unlocks progressively more attractive benefits (see below).
To be honest, the rewards of the PINK program are no more special than the programs we mentioned above.
So, why are they still successful?
Research from the Catholic University of Portugal shows that it depends on using the well-known brand name Victoria’s Secret. This gives them quick authority and trust with potential customers.
Through various brand interactions, Reebok UNLOCKED members may earn points that unlock new levels as they go through the game. Members will have access to ever-higher-value rewards as they advance through the levels.
The program itself is saturated with gamification elements. For example, members must acquire levels rather than tiers, and pixelated badges and artwork accompany each improvement.
That unique feature sets the Reebok program apart from others and contributes to its success.
Geller Gal VIP Rewards’s cash-back benefit makes it stand out from the other programs in our blog post.
Also, members get a 10% discount on orders from our partner brands, including great beauty names like:
Other fashion brands offer unique experiences as benefits, but we know the cash-back approach will always be useful. Because it directly appeals to the well-documented desire for financial savings among consumers, tapping into their psychological motivations.
Do you remember the GAP Good Rewards program we mentioned above as “one program for four brands”? Banana Republic Rewards falls under that umbrella. As a result, their points structure and redemption process mirror each other.
Again, this shared infrastructure is a key contributor to the program’s success.
Last on our list of fashion loyalty program case studies is New Balance’s MyNB Rewards. Their loyal members will enjoy benefits such as:
It’s worth noting that New Balance stands out as one of the few fashion brands that have integrated 3D foot scanning technology into their loyalty programs. This cutting-edge service provides a unique and valuable benefit for members seeking a customized footwear experience.
We hope that our examination of the top 19 fashion loyalty programs has given you insight into creating a compelling program for your company.
Remember that to be successful, you need to know your customers and what drives them. Also, offering a tempting mix of benefits, bonuses, and a perfect user experience can help you get people to buy from you again.
Visit our blog to learn more about loyalty programs! We study case studies and ideas from many sectors to inspire you to create a successful loyalty program for your company.
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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