Loyalty Programs for Home Brands
Loyalty programs for home brands foster high-value relationships between brands and consumers. And they’re an easy way to get more referrals.
Loyalty programs for home brands foster high-value relationships between brands and consumers. And they’re an easy way to get more referrals.
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The main challenge for home brands is that consumers don’t buy furniture and other home goods as frequently as they do other products. And while the higher product prices translate to a higher AOV, brands have lower margins, making discounts cost-prohibitive. Consumers also heavily research home goods, which can make member acquisition and brand building more difficult.
Loyalty programs offer an excellent opportunity to stay in touch with customers, so you’ll be top of mind when they’re ready to make that next purchase or recommend a brand to family and friends.
To build an effective loyalty program, focus on one or more of these features:
Offer a sign-up bonus for customers who join your loyalty program that can be used on their first purchase. Even a small discount can provide an incentive to join and ensure that a shopper buys from you instead of a competitor.
Even if a member isn’t ready to buy, you can keep them engaged with exclusive, relevant content, like decorating and buying guides or interactive home design tools.
All brands should focus on customer service, but loyalty members can be given access to concierge-level service, like a dedicated representative or a VIP line of communication with no wait times.
Incentive members to refer their friends and family through perks and discounts. You can also incentivize reviews, with additional rewards for shoppers who post product photos.
Award a birthday bonus to incentivize members to purchase during their birthday month. You can also offer points or special offers in exchange for feedback on new products.
Customers want to shop with brands that share their values. Boost brand affinity by offering points for donations to a cause.
These strategies are the most effective for home brands overall, but it’s best to take your own customers into account. Consider surveying loyal customers and using their feedback to build and optimize your loyalty program. Remember, a successful loyalty program centers members at every touchpoint.
Now that you know the building blocks of a good loyalty program, it’s time to see some in action. Read Chapter 4 to see six great examples of effective programs from brands.
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