H&M, Europe’s largest clothing retailer, rewards customers who demonstrate devoted buying behavior with its all-digital loyalty program. With over 100 million fashion fans, the aim of the H&M loyalty program is to motivate customers to come back often and make frequent purchases. When creating their loyalty program, H&M also put an emphasis on rewarding customers even when they are not spending money and making sure that they stick around for more exciting benefits in the long-run.
Membership Page – A Fashionable Society
Customers can easily access the H&M membership page, where they can sign up for the completely free loyalty program. Members-to-be can also read about the benefits of the program, see exactly how it works, learn how they can earn points, redeem rewards and become a Plus member. Upon signing into their account, customers immediately see their current point balance along with the benefits they can use at the moment. They also get access to all their account information, from purchases, to points history and payment settings. A “My purchases” option is also available where customers can separately see their online orders and store receipts.
Members of the H&M loyalty program also have the opportunity to activate the now trending buy now, pay later option, which the company offers through Klarna. This means customers receive their items right away but can choose to break up their total purchase and pay only a smaller amount up front and the rest in equal installments at a later time. All they have to do is scan their in-app member ID at the cash register and say that they’d like to use Pay Later — simple as that!
Enrollment – Being Trendy Starts Today
When joining H&M’s completely digital membership, customers only have to submit their email address, create a password, and indicate their date of birth. Customers have the option to add more information about themselves, such as their name, gender, and postal code, in order to receive more points and a more personalized experience. This is a great way to reward customers for non-transactional activities and collect valuable zero-party data.
Shoppers can also sign up for H&M’s newsletter to get offers, style updates and special invites to sales and events. Upon joining, members receive a welcome email that includes a 10% discount. The email could use a bit more personalization, but for now right now there isn’t much customization involved. Members can explore all the perks of being a member on the company’s website or in the H&M app.
Program Structure – Making a Fashion Statement
The H&M loyalty program is a free, tiered program with two tiers that are determined based on the amount spent by members, online and at H&M stores. Members receive one point for every dollar. They earn points when they shop or perform non-transactional activities such as referring a friend or reviewing an item they bought. They also occasionally receive bonus vouchers and other surprise rewards, like holiday treats and additional discounts.
Customers become Plus members when they reach 500 points. Plus members receive even better perks and offers, including free shipping and returns, unique experiences, surprise offers, and special access to limited collections. Once a member becomes a Plus member, they retain their Plus status for the remainder of the current membership year as well as the following membership year.
Point Accrual – Fast Fashion, Fast Points
Members earn points for every purchase they make. In order to get points in store, customers need to download the H&M app and scan their member ID at checkout. When shopping online, points are automatically added to their accounts, where they can also see their total point balance and find out how many more points they need in order to get their next bonus voucher.
Points are valid for 12 months following the membership start date. At the end of the membership year, point balances are reset and a new membership year begins. H&M’s loyalty program provides customers an omnichannel experience thanks to their digital Member ID. Customers can use their digital ID to earn points both online and offline, though sometimesH&M offers single-channel discounts that can be used either online or in-store only.
Point expiration needs to be considered carefully. On the one hand, it can be a great way to encourage members to stay active and use their points quickly. Members might even purchase an extra item in order to earn additional points and receive a new voucher. On the other hand, losing points is an unpleasant experience for customers, especially if they are not frequent shoppers.
H&M loyalty program members receive a bonus voucher of $5 value for every 200 points they earn. Furthermore, they’re rewarded outside the buying cycle as well. Members can earn 100 points for inviting friends who make their first purchase. They can also earn 2 points for writing reviews about items they have purchased and 50 points for completing their profile.
Rewards – A Dashing Experience
New members receive a welcome offer of 10% off their first purchase. Other rewards include shopping events, where members have access to the new collections and collaborations with designers, a birthday surprise, and other members-only offers and discounts. Members can access their rewards through their online account or the app. All they need to do is choose the voucher they wish to redeem and either add it to their shopping bag online or use the app to scan the reward’s barcode when checking out in store.
Members who reach the 500-point spending threshold get “Plus” access, which unlocks additional experiential rewards. Plus rewards include free shipping and returns regardless of the order amount; unique experiences, like fashion shows or in-store events; surprise offers. including flash discounts—offers that come out of nowhere and can be used instantly; and special access to limited collections, where members can purchase items before they even go on sale publicly.
Conscious Points – A Sustainable Fashion Future
The H&M loyalty program rewards customers for making more sustainable choices as well. They receive Conscious points every time they purchase a Conscious item. Conscious points can also be earned by recycling clothes they no longer use in H&M’s Garment Collecting program. Members who recycle receive points and a digital voucher. To further encourage a more sustainable lifestyle, H&M rewards customers for bringing their own bag. Conscious points earned can be turned into vouchers, redeemable with customers’ next purchase.
Mobile App – Seamless Shopping for Fashionistas
H&M’s mobile application lets customers shop the retailer’s extensive inventory.
Customers can discover H&M’s clothing, accessories, and home furnishing products seamlessly. The app also lets customers find nearby stores, shop look books and access coupons. It also comes in handy when a customer is inside one of their stores, for example, if they can’t find their size or would like to know if an item is available in additional sizes and colors. When customers scan an item’s price tag, the Scan & Find feature appears.
The Visual search option lets members explore what H&M has to offer by using their own photos or screenshots. It recognizes patterns, colors, styles, and gives them a list of matching or similar items in stock. Members can activate push notifications to be the first to know when a new designer collection drops and get notified whenever H&M has special offers and events.
Push notifications ensure that your message reaches the intended audience, no matter where they are. They are personalized reminders that get customers into your store and they’re also a great way to stay in touch with members by letting them know about special offers.
All in all, H&M shows how mobile apps should be done. One of the downsides of the retailers’ loyalty program is that membership does require having the app installed. It is required so members’ unique digital ID can be scanned so they can receive points. It seems as if the company hasn’t considered customers who don’t want to have retailer apps on their phones. These customers could easily be allowed to show a saved code from time to time. Having the mobile app should be an option, but not a requirement to participate in the loyalty program.
Final Judgement – Dressed to the Nines
The H&M loyalty program looks to build and reward long-term relationships with customers around the world. Members are invited to experience the best of H&M through great offers, digital and physical events, fashion shows, pre-sales, collaborations, and much more. Over the past few years, H&M has updated their program and now it is entirely digital and rewards much more than transactions.
Although most of the benefits are basics that you might find in any loyalty program, some of the premium benefits do seem pretty enticing. However, the company could invest a little bit more into their personalization efforts. H&M encourages customers to use their benefits faster by making points valid only for a given time and resetting them at the end of the membership year. Also, the brand has done a great job with their mobile app, although it does have one drawback: it is an obligatory download, even for members who prefer to shop in store. Nevertheless, the H&M loyalty program seems like a good deal, especially for customers who plan on shopping at H&M rather frequently.
Explore the most important benefits that loyalty programs offer fashion brands from our ebook.