Customer Retention and Loyalty: strategies for the world of fashion
Customer retention is a metric that measures a company’s ability to retain its customers over the long term. In an increasingly competitive business climate, establishing and nurturing a loyal customer base is crucial to business success.
According to research conducted by Nielsen, 84% of consumers tend to choose brands that offer well-structured loyalty programmes. In addition, a study by Accenture revealed that customers signed up for loyalty programmes tend to generate 12% to 18% more revenue per year, with an average spend 57% higher than non-subscribed customers.
These data demonstrate how important loyalty programmes are as a strategy for incentivising customers to return and repurchase products and services from the same brand rather than competitors.
Fashion loyalty trends in 2024
Companies in the fashion industry are adopting various innovative strategies to boost customer loyalty and maximise their value.
- Multi-brand loyalty programme
A multi-brand loyalty programme is an initiative in which two or more companies join together to develop an end-to-end loyalty ecosystem, allowing customers to earn and redeem points from any company that is part of the ecosystem.
The objective is to extend the Customer Lifetime Value (CLV), that is, the total value that a customer will generate for a company over the course of his or her relationship with it, and to increase the perceived value of the premium that the customer can redeem.
- Gamification and personalisation
Although many current loyalty programmes are based on traditional point collection, more and more brands are introducing gamification components into their initiatives.
The era of standardised loyalty cards is coming to an end. The most effective thing today is customised content, adapted to the customer’s or prospect’s stage in the conversion funnel.
This is why brands are incorporating playful elements into their loyalty programmes targeted at specific consumer categories, making the shopping experience more engaging and personalised.
- Omnichannel
Managing a loyalty programme in 2024 means designing programmes in an increasingly omnichannel context.
Omnichannel loyalty consists of planning programmes involving different touchpoints through which the encounter with customers takes place.
An omnichannel loyalty programme not only recruits new customers through digital channels, encouraging them to visit physical stores as well, but also allows loyal customers to navigate in an “authenticated space” that enhances all activities, before, during and after purchase.
- Integration of the loyalty platform with the customer relationship management (CRM) platform
More customised and attractive programmes can be created by integrating a loyalty platform with the CRM system, in which customer data is stored.
Incorporating CRM data makes it possible to profile and segment audiences. Through the creation of differentiated clusters, the company is able to identify consumption habits, gaining a competitive advantage over the competition in terms of the availability of information about the target group’s wants and needs.
In conclusion, integration between the loyalty platform and CRM system facilitates targeted communication. Personalised messages are addressed to customers via different methods and channels, offering products and services suited to their needs.
As a partner on the way to digital maturity, Amplize strives to boost its business expansion through the long-term Salesforce adoption and thanks to the support of Salesforce Ventures, the global investment arm of Salesforce focused on partnering with the most ambitious enterprise technology companies at every stage in their journey.