So how does Victoria’s Secret succeed in brand loyalty? Brand recognition. Victoria’s Secret offers quality products along with knowing exactly how to identify to the correct market. Victoria’s Secret has been very successful with their past advertising campaigns due to the quality of the products and helping make a customer feel good and sexy about themselves.
Victoria’s Secret also offers brand loyalty programs. Past research has showed that 62% of American consumers join loyalty programs in order to receive discounts, but only 36% receives promotional rewards. Reason being that about 81% of members do not understand exactly how reward programs work. Victoria’s Secret for example; if a customer leaves their phone number and email every time they make a purchase, the more coupons and discounts they will receive. If they chose not to leave it every time, it will be unknown that they are frequent shoppers.
Loyalty programs are great with knowing a customers spending behavior. If the purchases can be tracked, then the promotions can be given toward items they would normally buy, based on past spending behaviors.
Successful brand loyalty programs create a line of communication between the brand and its customers. Gifts and freebee’s can help keep the best customers and make a big change in the competitive field of customer loyalty.
A survey done by CrossView (2011), a provider of cross-channel commerce solutions, showed that over 50% of shoppers are motivated by brand loyalty when they make a purchase and 66% said that loyalty programs do not make them more likely to shop with a particular retailer.