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The Luxury of Customer Loyalty

The Luxury of Customer Loyalty

Ralinda Harvey

The only thing that may stop a customer from buying True Religion jeans from Saks instead of Barney’s is that they have a Barney’s card. With Barney’s points based program you get money back for every dollar that you spend. So although Barney’s rests at the top of the luxury fashion food chain, they still have a loyalty program similar to one you may find at your local grocery store.

Why? Simply put “Loyalty Works.” There’s a marketing adage that says it takes 3 to 4 times as much money to find a new customer as it does to keep an existing one has been proven time and time again. It’s about more than keeping a clientele book. Fantastic customer service should be a given, but establishing true loyalty takes putting your money where your smile is:)

I’ll caution you that as a contemporary boutique you too have to be strategic like Barney’s and develop a brand savvy luxury loyalty program that stops your customers from worrying that you’ll soon be changing the name of your boutique to Dress Barn.

Keep in Mind a Good Luxury Loyalty Program Should….

1. Increase Sales. Create a program that not only rewards customer’s current sales but drives them to buy more. Although it’s nice to reward people you want to make sure the program serves its purpose of driving more volume through loyal customers.

2. Elevate the Brand. Reward customers via points with something they’d want anyway. Maybe it’s a gift certificate to an ultrachic restaurant, a massage at Bliss Spa or Fashion Week tickets. Make it a true reward….not a discount. While a discount cheapens your brand a luxury reward puts you in the front of the class.

3. Begin Exclusively. Do a test run with some of your top customers or try a “Summer Rewards” program. Run it June through September, and then compare your sales to last year to evaluate your return on investment. Once you determine what’s what you may decide to make some adjustments or roll it out to your entire customer base.

Overall you want to make sure that before you start, you reviewed your sales and understand your customer enough to determine the best luxury loyalty program for your store. The right program will give customers a vested interest making your boutique the ultimate destination for every shopping trip.

For help on implementing a fashion focused luxury loyalty program contact us at

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