Building customer loyalty is crucial for businesses to remain sustainable and profitable. This is because when a customer becomes loyal to your brand, the likelihood of repeat purchases increases significantly. One effective customer retention strategy is implementing a loyalty program. A business that practices this tactic well is Tommy Hilfiger.
The Hilfiger Club is Tommy Hilfiger's membership program that gives members exclusive perks such as first look on their latest drops, members-only products, early access, birthday discount, etc. This not only creates a sense of exclusivity and community amongst members but also gives them an incentive to make more purchases, therefore increasing Customer LTV.
This is an alternative way on how-to start building customer loyalty:
- From your Shopify Admin, go to Customers to add relevant tags for each customers i.e. VIP.
- Install Konigle to your Shopify store.
- Go to Settings under Store design, enable Customer based pricing.
- Next, from your Konigle dashboard go to increase LTV strategy, implement ‘Customer Based Pricing’ tactic.
- Create new pricing rule to reward your loyal customers based on the tag created in Step 1.
- Send an email out to said customer group informing them of the exclusive deal.
Alternatively, you can enable the LTV Booster tool also available on Konigle, this tool automatically gives your customer a discount off their second purchase!