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 doesn’t quite meet the business needs.

Every year, lots of new members joined, but many of them didn’t stay after using the 10% welcome offer.

Repeat purchase rate and purchase frequency was hitting a plateau, as the programme lacked a compelling reason to do so.

(move to part of the ambassador program topic)The loyalty programme was positioned as a core driver to achieve Direct-To-Consumer sales growth, but retail store participation was lagging due to lack of internal support.

Which meant insights into customer behaviour were heavily skewed towards online purchases, only showing a partial picture.

Member identification in store was not enough, since they had no real reason to do so.

Solution

We decided to overhaul the loyalty programme from the ground up, to one that gives 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 can earn points by both making purchases, as well as sharing profile data and engaging with the program. The more points they earn, the more benefits they will receive, such as free shipping on all purchases, priority customer service, anniversary gifts, and more.

We also built in flexibility to fine-tune and tweak the programme mechanics in the future, as we know that what the business thinks is going to happen, rarely happens.

In the end, the consumer decides, and we wanted to avoid locking ourselves into promises that either we cannot keep, or the consumer doesn’t care about.