Consumer loyalty is a highly valuable commodity, with brands and retailers finding themselves implementing various long and short term strategies to hold their customer’s satisfaction. Loyalty programmes are one of the most important tools at these groups’ disposal, and but with so many avenues to go down brands may not be focused enough to hit the mark.
Bond Brand Loyalty partnered with Visa to release their Annual Loyalty Report for the U.S.A for the ninth year in a row, with industry-specific rankings to allow brands to understand their unique sector’s trends best.
The data revealed that member satisfaction for consumers in the fashion industry was at 40 percent. This was one of the lower sectors with only Car Rentals (38 percent) and Hotels (37 percent) falling below. In terms of specific organisations which stood out, the research also included insights into consumer’s favourite loyalty schemes. For the fashion industry, the top three programmes were from The Children’s Place My Place, American Eagle Outfitters and DSW.
While satisfaction may be low, research showed that Gen Z and Millennial shoppers, above the Baby Boomer and Gen X groups, were the most influenced by loyalty schemes. 65 percent of Gen Z and 71 percent of Millennials declared that the quality of loyalty schemes influenced their shopping choices. It was also found that 52 percent of these shoppers were willing to pay an additional fee to receive more significant loyalty benefits.
With consumers placing such a significant value on these loyalty schemes, and the majority being unsatisfied with what is currently available, it seems that the fashion industry has an untapped opportunity sitting at their fingertips.