Tommy Hilfiger Loyalty Programme Re-launch
Challenge
Having changed course in its customer engagement strategy multiple times over the years, Tommy Hilfiger had a long-standing loyalty programme, but one that didn’t quite meet the shifting consumer landscape and evolving business needs.
Every year, lots of new members joined, but many of them didn’t stay on after making the most of the 10% welcome offer. Repeat purchase rate and purchase frequency was hitting a plateau, as the programme lacked a compelling reason to do so.
Solution
We decided to overhaul the loyalty programme from scratch, creating an experience that could give members tangible reasons to sign up, share their profile data, identify themselves across channels, and - most importantly - to keep coming back year after year.
We introduced a point-based system, where members could earn points by making purchases as well as sharing profile data and engaging with the programme. The more points they earned, the more benefits they could receive, such as free shipping on all purchases, priority customer service, anniversary gifts, access to exclusive experiences and more.
We also built in flexibility to enable us to fine-tune and tweak the programme mechanics as we went along (since we all know that what the business thinks is going to happen, rarely happens!)
Impact
The project is still ongoing, but early indications are promising across member sign-up rate, average transaction value and markdown percentage, resulting in a double-digit incremental sales growth in launch markets.
