A look at the most loyal consumers in the apparel industry.
1 / 9 Advertisers spend a lot of time targeting consumers who are already loyal to their brands.
A recent survey by BrandMetrics found that in 2014, the top three brands spent $17.6 billion to engage their existing and potential consumers.
“They are also very passionate about the brands they own and what their brands are all about,” says Andrew Ransome, BrandMetric’s senior brand analyst.
“The brands are looking for loyal customers to buy their products.”
For a brand that’s trying to appeal to the millennial generation, a number of brands have already developed loyalty programs.
For instance, Abercrombie & Fitch launched a loyalty program in April 2015 that gave shoppers the chance to earn points toward their purchase at the retailer’s website.
“It was a big step for Abercrofans, as they were the only brand to do it,” says Rob Crampton, an associate professor of retail management at the University of New South Wales.
“We now know that loyalty programs are a way of getting customers to become more engaged with their brands.”
In 2014, Fitch started a loyalty plan for its women’s apparel.
“One of the big reasons we decided to go with women’s is we know that a lot women like a high quality, tailored garment,” says the company’s senior vice president of consumer product.
“If a brand is really passionate about its products, it has a good chance of getting those women.”
Fitch’s loyalty program was discontinued in October, but its popularity was quickly picked up by other retailers.
“When you go to a retailer and you say, ‘I’d love to have a pair of these, but I’m not sure where I can find them’, it’s an easy thing to say, because you know you’re going to find them,” says Cramton.
“I think we saw that in our loyalty program and I think that we saw it in our consumers.
The brand that gets the most traction is the one that is able to capture the most loyalty.”
Advertiser spend a huge amount of time getting brands to know their loyal consumers 1 / 10 When it comes to brand loyalty programs, there’s no shortage of brands in the world.
The average spend for retailers on a loyalty campaign was $9,000 per day, according to BrandMetics data.
While these numbers are still relatively small, the data suggests that the brands who do have the most success are also the ones that have the best relationships with their consumers.
“We’ve seen in our research that brands who have strong loyalty programs do better,” says Ransomes.
“You don’t need to be an expert at customer acquisition to understand how brands can get the most value out of their existing fans.”
As long as brands are willing to spend money to reach their target audiences, the loyalty program could pay dividends.
“A loyalty program can be very successful because it’s a way to build a loyalty network,” says Jason Krakoff, founder and CEO of BrandMettics.
“People will spend money, and if they love a brand and are loyal, they’ll go out and buy from the brand.”
For brands that can tap into these types of relationships, loyalty programs can be a win-win.
“Consumers like to be part of a group of people who are buying from a certain brand and then spending money,” says David Hockney, managing director of consumer brands at Citi Retail.
“Having a loyalty model can help that group grow.”
Ransoms own brand is one of the brands with a high loyalty program.
“There’s a strong desire among the brand owners to engage with their customers in ways that they’ve never done before,” he says.
“So, they’re looking for a loyalty incentive to get that loyalty.
If you’re willing to invest in your brand, you’re giving that to your loyal customers.”