ASOS is forging deeper relationships with its army of online shoppers by rolling out an 'earn while you shop' loyalty scheme.
The loyalty scheme, only available to UK customers, taps into the quintessentially British obsession with social mobility: awarding higher status in exchange for earning more points.
For every £1 you spend, you earn five points - and when you have 500 points - you're rewarded with a £5 gift voucher. Beyond there - three levels await.
The online fashion giant has seen massive success with similar schemes (especially within the millennial market) by rolling out regular rewards for ‘premier’ users as well as aligning itself with the buoyant student market.
The retailer first trialled a similar scheme, known as ASOS Rewards, with a small number of UK shoppers in 2014, in a bid to get its 9.7 million active users to buy more stuff, more often.
Now, taking it to the next level, ASOS has teamed with Spotify, STA Travel, Krispy Kreme and Metcalfe’s Skinny popcorn to offer exclusive competitions - using a similar model to telecom giant O2 - which has forged its huge success on the back of customer loyalty and brand parnerships.
So how does it work?
Earning 400 points gets you to level one, with rewards ranging from 15% off on your birthday, one free next-day delivery, two days where users can earn double points and entry into competitions.
Earning 1,000 points gets you onto the illustrious level two, carrying over the privileges from level one, plus: an extra next-day delivery, advance warning of sales and more double point days.
Should users be so lucky to reach the final, most revered level three (3,000 points) loyalty will be rewarded with 20% off your birthday, 24-hour early access to sales and an extra next-day delivery.
Shoppers will be automatically enrolled onto the A-List when placing a qualifying order, meaning no one escapes the lure of reward.
The clever scheme not only fosters loyalty through reward, and shopping through mobility, but also instills a sense of urgency - giving users just six months to redeem their A-List vouchers - in a bid to boost immediate sales.
Already delivered into subscriber inboxes, ASOS will no doubt be spearheading its fledgling loyalty scheme throughout its email marketing - highlighting user progression and rewards to fertilise engagement - we look forward to watching it unfold.
ASOS' scheme is a calculated move to extract as much value possible from existing customers to extend customer lifetime value as retailers battle to boost retention.
Attracting a new customer can cost five times as much as keeping an existing one, so companies need to pay as much attention to retention as they do to acquisition. A report from Harvard even suggests that boosting customer retention rates by just 5% can increase profits by between 25-95% - an attractive proposition.
Whether employing clever loyalty programmes, such the A-List, or improving your email customer service to extend the lifetime value of customers, one thing is clear: happy customers live longer.
We for one are excited to measure the success metrics from the classy scheme and see what impact it has on the online retailers' bottom line, and perhaps its market share.