When a cashier asks you if you would like to enroll in the loyalty program, you tend to ask if there are any immediate savings. But what if enrolling meant you got early access to collections or sales? More and more retailers are finding that experience and exclusivity beats savings.
You know those designer collaborations at Target that sell out incredibly fast? The company’s latest designer is Hunter, and Redcard holders were pleased to hear that they would received early access to the collection. This method has been working well for Nordstrom during their anniversary sale. Each year the company holds a sale that features new and exclusive pieces. The only catch is you need to be a Nordstrom card holder to have full access to the event.
However, even with this level of exclusivity comes the want for personalization as well. Brands such as Sephora and MAC Cosmetics have allowed room for customization in their loyalty programs. Based on how much a customer spends, they have the opportunity to unlock a new level of savings and experience. This includes free gifts, discounted products, complimentary makeovers, and free two-day shipping. For those consumers who are looking for a deal without having to spend the most, Target and Walmart have created apps that have an underlying loyalty. The “Walmart Savings Catcher” and “Target Cartwheel” both allow customers to shop for the very best savings without a credit or loyalty card.
Why are retailers going the extra mile? All companies are out for data. Each time a buyer swipes their loyalty card or enters an email address, the purchase is logged into the consumer’s profile. Having access to consumers purchasing habits is worth the extra customization. These retailers are using the data to better market to you and continue to shift as buying behavior continues to change. Some consumers believe retailers are fringing on an invasion of privacy, well others are willing to compromise their data for the early access.