Increasing Customer Engagement and Revenue with a Premium Loyalty Tier [Case Study]

The retailer featured in this case study is a leading apparel, footwear, and sporting goods retailer with stores throughout the Northeast. 

Challenge

A family apparel and footwear retailer was exploring ways to drive higher levels of loyalty from its most valuable customers, while encouraging customers who shop less frequently to engage with its brand more often. Finding the right customer engagement solution that exceeded these customer-centered goals was a challenge the retailer needed to overcome.

 

Solution

With a free traditional points-based loyalty program already being offered (most customers were already enrolled in), this retailer wanted to make strides in enhancing its loyalty program by offering more valuable rewards. After discovering the benefits that adding a Premium Loyalty tier would give its customers, the retailer decided this was the key to elevating customer engagement. Not only would it improve and create customer loyalty by rewarding customers on every purchase they make, but it would also positively impact the retailer’s most important revenue metrics.

 

Results

Conceptualizing, building, and launching the retailer’s premium tier happened in just under 90 days after partnering with Clarus. Once the program was offered in stores and online, members began using the benefits and seeing real value immediately.

The most engaged members of the free program quickly realized the value of upgrading to the premium tier and began using the benefits.  As a result, early adopters of the premium tier have increased their annual purchase frequency by over 40% and their annual spend has jumped 24% online and in-store.


This retailer successfully increased the number of times their customers are coming back to shop with them because, as members, they’re now getting unique, valuable benefits every time they shop. Adding a Premium Loyalty tier that generates subscription revenue allowed the retailer to give premium rewards to members in return for a significant boost in shopping frequency and spend.

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