In 2025, loyalty programs are essential for companies aiming to build lasting customer relationships.
- H&M’s loyalty program focuses on sustainability and personalised perks for customer engagement.
- The RealReal combines luxury with sustainability, offering personalised experiences and incentives for consignors.
- Adidas’s adiClub rewards fitness activities and purchases with a four-tier membership system.
- Sephora leverages gamification in its Beauty Insider program to foster an engaging community.
As businesses look towards 2025, the importance of well-crafted loyalty programs has become paramount. Such programs not only reward customers but also cultivate enduring relationships, proving crucial to customer retention strategies. Research indicates that when customers feel valued, a significant percentage plan to remain loyal, spend more, and promote the brand. Notably, companies across various sectors, from retail to quick-service restaurants, view these programs as business essentials.
H&M stands out with its loyalty program that advocates for sustainability while offering personalised benefits aimed at repeat purchases. Launched in 2017, H&M Membership boasts a straightforward digital signup, utilises a tiered membership system, and incentivises sustainable practices with rewards for clothing recycling. This approach has successfully turned casual shoppers into dedicated brand advocates.
Meanwhile, The RealReal has shaped its First Look program to merge luxury shopping with environmental responsibility. By personalising user experiences and incentivising consignment, the company offers exclusive access to pre-owned luxury items and promotes a circular economy. This strategy not only satisfies the consumers’ desire for exclusivity but also encourages sustainable consumer habits.
Adidas has adopted a unique approach with adiClub, which integrates fitness encouragement into its loyalty rewards. Members earn points through purchases and physical activity, supported by the Adidas Running and Training apps. With a four-tier membership, the program offers exclusive products and experiences, effectively creating a community that values active lifestyles.
Sephora’s Beauty Insider has been exemplary in utilising gamification to enhance customer engagement. The program’s tiered structure, coupled with interactive experiences, has built a vibrant beauty community. By rewarding not just purchases but participant engagement through challenges, Sephora has fostered a community of enthusiasts who find value beyond mere transactional benefits.
Loyalty program in 2025 are pivotal in creating sustained customer relationships and enhancing brand loyalty.
This article was originally published by Financial News on 9th November 2024. View original.
