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With a market penetration of 46.6%, the fashion industry is the biggest ecommerce sector in the world and it’s projected to increase to 60.32% by 2024. Barriers to entry are getting lower, and as customers have more choice, their brand loyalty decreases – 75% of shoppers say they have changed brands in 2021.
So how can you increase brand loyalty and differentiate from competitors?
In this blog, we’ll show how Closet London, a contemporary womenswear brand, secured customer loyalty and increased their revenue.
First, let’s introduce Closet London.
Established in 1996, Closet London is a contemporary womenswear brand inspired by confident and feminine women. Today they have an inspirational online presence and community.
Yet, Closet London needed to give their customers more reasons to stay loyal to build longer-lasting relationships that would keep their existing customers from straying to the competition.
Here’s how they achieved this:
Recent research showed that 74% of customers are motivated to become loyal if they are working towards a goal or reward. With this in mind, Closet London’s team decided to build a tiered loyalty program structure where customers can accumulate points to access more rewards. Then to communicate about the benefits of their loyalty program, they created an integrated loyalty page. With this integrated loyalty page, members are also able to engage more with the Closet Club, redeem their rewards and see which tier they are in.
Customers who become a member of their Closet Club can progress across four levels; “Bronze”, “Silver”, “Gold”, and “Platinum”. Each tier allows customers to earn more points and unlock discounts so they’re encouraged to spend more. For instance, a Bronze member can earn three points per pound spent whilst a Platinum member can earn seven points per pound spent.
Customers who have collected at least 250 points can then redeem percentage discount rewards. As members in the top tier can collect more points per purchase, they’re also able to obtain percentage discount rewards more often.
As 75% of fashion shoppers are willing to shift brands, Closet London needed to maintain relationships with customers, ensuring they stay top of mind even when they’re not spending.
How did they do it? The team saw that more than 50% of shoppers check their personal email account more than ten times a day, and it is by far their preferred way to receive updates from brands. So they aimed to deliver personalized emails.
They used LoyaltyLion’s Insights feature to identify their loyal, at-risk, and churned customers. Then, using LoyaltyLion’s integration with Ometria, they personalized their loyalty email campaigns based on customer segments, delivering targeted communications.
For their at-risk customers, reward available reminder emails are used to remind them that there is a good reason to return to the store instead of shopping with another brand. And for their returning customers, double points campaigns are sent to them to make them feel valued, reward them for their loyalty and encourage them to make their next purchase sooner.
Today, more than 45% of Closet London’s loyalty program members return to the site to repeat purchase. All in all, these members contribute to 33% of their total revenue.
We are happy to power BigCommerce stores and witness their growth and success. As you can see, investing in loyalty generates engagement and drives revenue growth.
You can see our existing features here, or you can book time with one of the team to talk through our BigCommerce examples in more detail.