- H&M rolled out a new loyalty program on Thursday.
- Members, who can join the program for free, earn points on purchases at H&M that go towards cash rewards. They are also eligible for discounts including 20% off a blowout at Drybar.
- H&M joins a long list of retailers that have turned to membership programs in recent months to drum up loyalty among shoppers.
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H&M is offering discounts on blowouts at Drybar to entice shoppers.
On Thursday, the company announced its new loyalty shopping program, which includes discounts on H&M products, access to exclusive events, free shipping on orders over $40, and 20% off a blowout at Drybar.
The new program is split into two tiers, and members who shop more at H&M will be eligible for more benefits, including free shipping and access to special events.
Once a member earns 500 points — $1 spent is equal to one point — they are moved up into "Plus" status.
H&M joins a long list of retailers that have turned to membership programs to drum up loyalty among shoppers. Macy’s, Lululemon, Nordstrom, and Nike are among them.
And it seems to be working for some of them. In a recent earnings call, Macy’s CEO Jeff Gennette said that its "Star Rewards" program was "outperforming" expectations, citing it as a key reason for the retailer’s growth during the previous quarter, according to Reuters.
Lululemon, which recently rolled out an Amazon Prime-style membership — customers pay a $128 annual fee and are treated to a pair of pants or shorts, access to Lululemon’s classes and events, and free shipping on online orders — also seems to be having success.
After an initial test period, Lululemon CEO Calvin McDonald said in March that it plans to expand the membership to additional US cities in 2019, as it has seen "wonderful take-up" so far. Its loyalty program will not only provide the company with a new stream of revenue, but access to more customer data.
Read more: Lululemon is growing beyond the women’s yoga pants that made it famous as competition heats up
These brick-and-mortar retailers are being forced to come up with creative ways to keep customers loyal in the age of Amazon, experts say.
"The standards of what it takes to win and keep customers are just going to keep getting higher," Gartner director Tom Gehani told Reuters.
He continued: "Amazon is a company that has risen to meet that challenge and every other retailer is learning that they need to continually rise to meet that challenge too."
NOW WATCH: Here’s what Costco looked like when it opened in 1983 and the annual membership was $25
See Also:
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- Tim Hortons is testing Beyond Meat breakfast sandwiches, after sister-chain Burger King pledges to take meat-substitute rival Impossible Foods across America
- Macy’s CEO warns that the trade war could force the department store to raise prices
SEE ALSO: Lululemon is taking on Nike and Adidas with a push into sneakers
Source: Business Insider – feedback@businessinsider.com (Mary Hanbury)