2% Takeaway: Loyalty Program Greatness With True Religion Jeans — Don’t Ruin the Picasso - E002

Loyalty Program Greatness With True Religion Jeans — Don’t Ruin the Picasso - E002

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Daniel Monte, the Senior Director of CRM at True Religion Jeans, offers listeners a masterclass in loyalty program construction on the latest episode of 2% The Podcast. Founded in Los Angeles in 2002, True Religion Jeans has cemented its place as a fearless leader in the denim industry, attracting global attention for its innovative designs, bold style, and superior craftsmanship. Their loyalty program is no less impressive.

In this episode, Monte delves deep into the creation and execution of the successful True Fam Loyalty Program, providing invaluable insights for those who:

• Aim to construct an impactful loyalty program
• Seek to transcend traditional points and tiers in their loyalty strategies
• Require tips on program integration via email, SMS, and mobile apps
• Wish to understand how top-tier brands leverage loyalty programs to reward loyal customers
• Are on the hunt for retention best practices from an industry expert.

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Building a loyalty program from scratch, Danny and the True Religion team put their heads together to create something special.

Their goal was to establish a platform that recognized VIP customers beyond just points and tiers. Danny recognized that a well-implemented loyalty program could increase the customer's lifetime value (LTV) and, more importantly, cultivate more loyal customers.

Here are some of our selected takeaways from Danny:

Branding a Loyalty Program

Starting with the branding, the program, inspired by the music industry, has tiers named after statuses like "opening act" for new sign-ups and "icon" for established VIPs. The idea behind the program is to treat customers as stars, progressing from the initial stages to the heights of stardom, just as musicians do. True Religion leverages the concept of social currency from their customers and uses language that aligns with their everyday communication in their retention channels.

Common Pitfalls to Avoid When Starting a Loyalty Program

 Danny emphasizes several key points to remember:

• Avoid watering down the perks: Don't offer perks like “VIP access” that don't provide anything special. If you offer early access but give it to the full email list, you are cheapening your brand and removing the incentive to join the program.
• Treat loyalty members uniquely: Exclusivity is paramount. The more you reserve perks for members, the more incentive there is to join the program.
• Ensure the right people are opted in: Someone seeking only a discount may not be a good fit for your loyalty program. Focus on perks like early access to new releases; this behavior encourages customers to spend more and find value in the program.
• Get buy-in across the organization: Ensure your creative team, web team, acquisition team, and leadership are on board. Everyone should understand the value a loyalty program brings and contribute ideas.

Integrating Loyalty Programs into Email, SMS, and Mobile Apps

Danny recommends setting up automation across your owned channels like email and SMS for any event-based triggers. Your messaging should be intentional and personalized. Promote the program tastefully, incorporating messaging across your campaigns and automations where relevant. For example, include a banner in your post-purchase emails or a dynamic reminder of their points or status. At the same time, find tasteful ways to highlight the benefits to non-members of joining the program.

How to Opt Non-Loyalty Members into Your Program

Have a proper launch, communicate it, and promote it. This will attract your first wave of true loyalists. To keep promoting the program, offer exclusive incentives with new product rollouts for additional discounts or true early access. Remember, it's a long-term game: just because customers don’t opt-in on day one doesn’t mean they won’t opt in later. Also, consider arming your influencers to support and promote the program.

Are Loyalty Programs for Every Customer? 

No, a loyalty program should be viewed as a secret club. It’s meant for your evangelists who WANT the perks and are also the ones who spend the most. The goal is to speak directly to your brand enthusiasts and loyalists – the ones eagerly waiting for your next items to drop. Understanding your loyal customers and building the program around them is the way to attract more customers of the same kind.

What’s the worst retention advice you see most commonly given?

Danny advises to beware of advice that leads to anti-customer centricity. For instance, don't succumb to pressure to bombard customers with emails or SMS just because performance is down. You must stay true to your long-term strategy and prioritize customer relationships. Every additional email or SMS that doesn't add value risks increasing the opt-out rate. It's essential to stand firm in the face of pressure and always be customer-centric.

This blog post only scratches the surface of the wealth of insights shared by Danny. For a deep dive into True Religion's Loyalty Program and approach to retention, catch the full episode streaming now on all major podcast platforms and YouTube.

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