Why REVOLVE is Getting Loyalty Right

The recent surge in online shopping has given e-commerce brands new opportunities to expand their customer base and strengthen relationships with current customers. Online sales increased by 52 percent in Q1 compared to the same time frame in 2019, and the number of online shoppers has grown by 8.8 percent.

So when REVOLVE, an e-commerce site that focuses on luxury clothing and goods, launched its new REVOLVE LOYALTY CLUB program, it proved successful — introducing 226 new clothing arrivals since the program began. Using data analytics, REVOLVE crafted a loyalty program that offers compelling value, goes beyond rewards points, and provides an attractive tiered approach.

And while the program has traditional transactional benefits for customers, membership also provides customers with earlier access to sales, stylists and potential involvement in influencer events. With an increasing number of millennial and Gen Z shoppers scrolling their social feeds, now is a good time for online brands to launch or update a loyalty program — and to look to REVOLVE for inspiration in the process.

Use Data and Analytics to Create a Compelling Loyalty Program

Founded by technologists, REVOLVE thrives on data. Therefore, to further strengthen its already deep relationship with high-spending millennials and Gen Z customers, the digitally native fashion retailer took a left-brained approach when designing its loyalty program. Data shows that REVOLVE garners a high customer lifetime value — 92 percent of customers browse the site once a month or more, and nearly half make purchases while visiting. Repeat customers are the lifeblood of REVOLVE’s business, generating 71 percent of total orders and accounting for 74 percent of the brand’s total net sales in 2019.

REVOLVE took its customer experience a step further, asking customers directly what they wanted in a loyalty program. Utilizing live customer service channels, the company’s proprietary data revealed that its customers want a fun and engaging program that rewards them for shopping their favorite brands. The key to retaining its lifeblood, then, was to offer a new four-tiered REVOLVE LOYALTY CLUB program that enhances the personal and premium customer experiences the brand is known for.

Offer the Right Mix of Transactional and Experiential Benefits

REVOLVE’s loyalty program offers instant access to both transactional and experiential benefits. The transactional benefits serve as a hook for getting customers excited to sign up for the program. For example, nearly seven out of 10 consumers are motivated to invest in a premium loyalty program when offered instant discounts or free shipping. While transactional benefits help entice customers to enroll in the program, experiential benefits forge sustainable, emotional connections and improve customer retention.

As a next-generation fashion retailer for millennial and Gen Z consumers, REVOLVE addressed the specific expectations of its customer base. The program’s four tiers — Insider, Star, VIP and Elite — allow members to advance to higher levels of loyalty. As members climb higher, they’re granted access to events and experiences they can’t get anywhere else — e.g., personalized shopping experiences, meet and greets with influencers and celebrities, the chance to join REVOLVE trips. These are the types of rewards that matter most to REVOLVE customers.

Key Takeaways From REVOLVE’S LOYALTY CLUB Program

• Get ahead of schedule. Consider the timeliness of launching a loyalty program now so you can have a program in-market this year — i.e., while consumers are shopping online in record numbers. In doing so, you’ll set your brand up for success later in the year and beyond.
• Do more than simply reward with points. While transactional rewards make members feel smart, experiential benefits make them feel special. Offer a combination of transactional and experiential benefits to achieve an attractive loyalty dynamic. Go beyond points and discounts, offering access to unique, exclusive experiences. This will elevate the experience of current members as well as entice new ones.
• Consider a tiered approach. A tiered approach attracts, motivates and engages loyalty program members by allowing those of all engagement levels to enjoy the program experience. A tiered system causes members to aspire toward the pinnacle level, where they’ll gain access to otherwise inaccessible special events.

Through years of historical data and tracking behaviors, REVOLVE used its proprietary technology to figure out exactly what its customers demanded: a loyalty program that bridges the gap between transactional offerings and emotional buying experiences. While transactional benefits are vital for hooking customers into your loyalty program, experiential benefits elevate the member experience and create a deep connection that fosters long-term loyalty.

By leveraging both transactional and experiential loyalty drivers, REVOLVE developed a tiered loyalty program centered around its core customers. This has proven an effective approach that’s within reach for your business.

Tom Caporaso is the CEO of premium loyalty solutions pioneer Clarus Commerce, with over 24 years of experience in the retail, e-business and customer loyalty industries.