Elevating Loyalty

within Luxury

Elevating Loyalty within Luxury

Why should you care about loyalty in the luxury industry? Because loyalty programs within the luxury industry are not just beneficial; they’re critical for cultivating enduring connections with high-value consumers.

By: Karin Rise on February 19, 2024 | Reading time: 7 minutes

Access programs have emerged as a powerful tool in the realm of luxury brands, revolutionizing how loyalty is cultivated, customer engagement is enhanced, and an exclusive community is created. These programs, which are more exclusive than traditional loyalty programs, are designed for a selected group of invited individuals who seek unique experiences and deeper connections with the brand beyond mere product purchases.

Why should you care about loyalty in the luxury industry? Statistics clearly demonstrate that affluent consumers actively participate in loyalty programs, highlighting the importance of these programs in building strong brand relationships. Research reveals that 86% of affluent consumers engage in at least one member program and have a higher redemption rate than other income brackets. Moreover, an impressive 78% of affluent individuals consider member programs a vital aspect of their brand relationships, surpassing the average among all consumers.

This article will delve into the objectives and significance of access programs for luxury brands. We will emphasize how these programs can strengthen brand relationships, foster long-term loyalty, and provide valuable insights and strategies to optimize your approach. Join us as we explore the power of access programs and unlock the key to building lasting connections with affluent consumers in the luxury market.

Four objectives

Curamando is part of the ARC Group, along with other companies such as the brand agency Kurppa Hosk. At ARC, we understand luxury brands’ unique challenges in building and maintaining customer loyalty. Our expertise in access program strategies enables us to help luxury brands establish and optimize these programs, ensuring they align with their brand values and objectives.

Objectives for Luxury Brands’ Access Programs: To truly understand the impact of access programs, it is crucial to outline the objectives they aim to achieve. These objectives include:

Recognition: By providing customers with in-depth knowledge about the brand’s unique selling points and historical significance, access programs create a well-informed customer base that recognizes and values the brand.

Examples of how to drive Recognition:

Rolex access program provides its members with exclusive access to detailed information about the craftsmanship and heritage of their watches, allowing customers to recognize and appreciate the brand’s unparalleled quality and history.

Louis Vuitton offers members behind-the-scenes tours of their ateliers and workshops, giving customers a deep understanding of the brand’s craftsmanship and the meticulous work that goes into each product.

Appreciation: Access programs offer customers a holistic view of the brand, fostering an appreciation beyond its products. Customers begin to appreciate the brand for its philosophy, history, and vision, developing a deeper emotional connection.

Examples of how to drive Appreciation:

Chanel provides members with invitations to private exhibitions showcasing the brand’s iconic fashion pieces, fragrances, and accessories. This immersive experience allows customers to appreciate the brand’s influence on the fashion industry and its timeless elegance.

Dom Pérignon offers members exclusive access to private tastings and vineyard tours, allowing customers to appreciate the brand’s dedication to producing exceptional champagne and its commitment to preserving tradition.

Personalization: Through access programs, luxury brands can tailor experiences and offerings to individual customers, making them feel valued and enhancing their sense of exclusivity. This personalization deepens the bond with the brand and creates a unique and memorable experience.

Examples of how to drive Personalization:

Burberry offers members personalized styling consultations with their in-house fashion experts, ensuring customers receive tailored advice and recommendations based on their preferences and style.

BMW provides members with customized driving experiences, allowing customers to personalize their driving preferences, from the seat position to the suspension settings, creating a truly personalized and immersive driving experience.

Promotion: Access programs cultivate a dedicated community of customers who invest in the brand and actively promote and champion it. This virtuous cycle of advocacy and loyalty enhances brand recognition and drives organic growth.

Examples of how to drive Promotion: 

Hermès offers members early access to their highly sought-after Birkin and Kelly bags. By granting privileged access to these iconic products, Hermès cultivates loyalty among its members and generates promotion as customers showcase their coveted purchases to others.

Rolls-Royce provides members exclusive invitations to test drive new car models before they are officially released. This creates a sense of exclusivity and generates promotion as members share their experiences and showcase the brand’s luxury vehicles to their peers and social media followers.

Understanding your customers and the luxury market

To design an effective and successful access program for luxury brands, it is crucial to start by understanding your customers and the luxury market. This involves conducting thorough research and analysis to gain insights into the target audience, their preferences, needs, and expectations.

Understanding the customers: Luxury brands need to understand their target audience deeply. This includes identifying their demographics, psychographics, and behaviors. It is essential to know what motivates them, what they value, and how they perceive luxury. This understanding will help tailor the access program to meet their desires and create a personalized experience.

Market analysis: Luxury brands must also analyze the luxury market landscape. This includes studying competitors, their access program offerings, and their strategies. By understanding the competitive landscape, brands can identify gaps, opportunities, and best practices to be leveraged in designing their access program.

Defining objectives: Once the target audience and market landscape have been analyzed, luxury brands need to clearly define their goals for the access program. This involves determining what they aim to achieve, whether it is increasing customer loyalty, driving sales, or creating an exclusive community. Setting clear objectives will guide the design process and ensure the program aligns with the brand’s overall goals.

Personalization and exclusivity: Personalization and exclusivity are key in the luxury market. Luxury brands should aim to create exclusivity and tailor experiences to individual customers. This can be achieved through personalized offerings, VIP event access, limited-edition products, and personalized communication channels.

By starting with a deep understanding of customers and the luxury market and defining clear objectives, luxury brands can lay a strong foundation for designing an effective access program. This customer-centric approach will ensure the program resonates with the target audience, fosters loyalty, and creates a unique and memorable experience.

“A unique opportunity for luxury brands”

We contacted industry thought leaders and internal experts at ARC to gather their insights on the impact of access programs in the luxury industry. Martin Stenberg, an experienced brand strategist, emphasized the importance of access programs in building brand loyalty. He stated, ”Access programs provide a unique opportunity for luxury brands to create a sense of exclusivity and reward their most loyal customers. By offering personalized experiences and insider access, brands can deepen their relationship with customers and create a community of advocates.”

In addition to expert opinions, our internal experts at ARC recommend utilizing relevant tools to enhance the effectiveness of access programs. These tools may include customer relationship management (CRM) systems to track and personalize customer interactions, data analytics to gain insights into customer preferences, and social media platforms to amplify brand messaging and engage with the community.

In conclusion, luxury brands must take immediate action to align their brand strategy with the expectations of the luxury market and leverage access programs to cultivate loyalty and create an exclusive community. By designing personalized and exclusive experiences, understanding the target audience and the luxury market, setting clear objectives, and leveraging expert opinions and relevant tools, luxury brands can differentiate themselves and capture the attention and loyalty of affluent consumers. It is time for luxury brands to embrace access programs as a powerful tool to build lasting connections and provide unforgettable customer experiences.

At ARC, we specialize in helping luxury brands design and optimize access programs that resonate with their target audience. Contact us to learn more about our expertise and how we can assist you in creating an exceptional access program tailored to your brand’s unique identity.

About the author

Karin Rise is a Senior Manager who heads up Curamando’s CRM and loyalty practice. She has 20+ years of experience designing and launching loyalty programs, defining CRM strategies, and transforming CRM organizations.

Get in touch!

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