If your brand specializes in luxury products, the following may sound familiar: most of your customers come in during the holiday season, only to disappear for years, giving your CRM team a headache. Indeed, low purchase frequency has been a thorn in the luxury industry’s side, but fear not, there’s a solution. Contemporary jewelry brand Diamanti Per Tutti managed to bridge the gap between the first and second purchase by focusing on exclusive tiers, in-store touchpoints and brand advocacy.
Turning Holiday Shoppers Into Frequent Buyers
Hailing from Antwerp, the diamond capital of the world, Diamanti Per Tutti is a jewelry brand promoting affordable yet stylish diamond accessories. As a player in the luxury industry, the brand’s biggest concern was low purchase frequency. The majority of their customers visited on an annual basis, primarily for Black Friday or Valentine’s Day.
With most customers going silent after their first or second purchase, it was a top priority for DPT to develop a system that rewarded loyal behavior. However, the company wanted to avoid diluting its image with too many discounts. Instead, the goal was to foster a like-minded community by supporting brand advocates and influencers.
Tiered Rewards Drive Repeat Purchases
In response to the customer retention challenge, Diamanti Per Tutti asked for Antavo’s help in designing a multi-tiered loyalty program called The Diamond Club. At its core, The Diamond Club uses a point system (called carats) and has three publicly available tiers, each offering incremental benefits.
- The three tiers are named after valuable gemstones to show the member’s status: Radiant, Marquise, Emerald
- Each €1 spent equals 1 carat; carats can be used to level up and redeem rewards
- The Diamond Club calculates carats using a multicurrency system
- Discounts are still available, since customers expect them, but the value of the discount is determined by the customer’s tier
- Customers receive surprise birthday rewards, a nice surprise-and-delight touch
Achieving Full Omnichannel Status by Adding In-store to the Mix
A single customer view is the bedrock of any company’s omnichannel strategy. To ensure that loyalty members’ offline and online activities are aligned, DPT introduced the loyalty program in their brick-and-mortar stores, too.
- A personal QR code is assigned to each individual’s user profile, which can be accessed through the member’s loyalty account.
- Odoo ERP synchronizes the data between Magento, Antavo and Odoo POS, which is utilized by Antavo during profile creation.
- Customers can earn carats with in-store purchases by having their QR code scanned by the shop assistant during checkout.
Building Advocacy by Catering to Brand Ambassadors
Diamanti Per Tutti aims to generate buzz and word-of-mouth around its brand by giving advocates, influencers and top spenders special treatment. A select few are invited to a hidden VIP tier, which is aptly named ‘Ambassador’.
- The Ambassador tier isn’t displayed publicly and Diamanti Per Tutti actively seeks out influencers and advocates, inviting them to the program
- Some of the perks associated with being an Ambassador include VIP services, free jewelry, discounts, and the ability to rent products for special brand events
- Influencers are also encouraged to host giveaways to raise brand awareness, for which they receive a selected piece of jewelry for free
Build Loyalty and Advocacy Just Like Diamanti Per Tutti
Increasing purchase frequency is just one among the many business KPIs a loyalty program can move – you just need to make sure the program is built with the right mindset.
As for The Diamond Club, Diamanti Per Tutti used a few other tactics to win customers over. One strategy the company used was to retroactively award points to customers after the launch, which immediately drove engagement rates through the roof. But that’s enough spoilers for today! For the full success story of this ‘jewel’ of a loyalty program, check out our case study.
Tamas is a Senior Loyalty Program Specialist at Antavo and a Certified Loyalty Marketing Professional - CLMP. Tamas is known for having a keen eye for loyalty and customer retention research and trends. Tamas is also a true gamer at heart and has an impressive collection of cyberpunk books.