Analyzing KITH’s Loyalty Program App

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‍Tuesday, March 5, 2024‍

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Good morning,

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The hyped up Willy Wonka Experience in Glasgow, Scotland left children crying and parents very, very angry.

The stunning AI-generated promotional images on the website touted a fun-filled, magical day but what visitors were actually greeted with was a sparsely decorated warehouse, Oompa Loompas reading AI-generated scripts, and a bizarre character called The Unknown, an evil chocolate maker who lives in the walls. Kids were given a single jelly bean on the way out. 🙃

A reminder that using AI image generators to advertise your event can help cut down on costs but expectations should still match reality and what you’re promising customers.

Here’s what you’ll find in today’s DTC:

• How premium apparel brand KITH created an attractive loyalty app with member-only merch.
• We talk about the state of Meta Ads and the ‘treat yourself’ economy.
• And how to scale your business the smart way.

You’re reading this newsletter along with new subscribers from: KaseMe Design, Squires Winery, and Kingdom Cards. 👋

‍CUSTOMER EXPERIENCE

🔑 The Key to Turning More Shoppers Into Lifelong Customers? Making EVERY Customer Interaction Delightful, Every Time.

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When it comes to your bottom line, the way you talk to your customers matters more than any marketing campaign, splashy new logo, or 20% off coupon ever will.

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‍BRAND LOYALTY

👕 KITH’s Brilliant Member’s Only Merch Strategy

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‍KITH’s newly revamped loyalty program app is a great example of how you can nurture your customers into becoming diehard fans of your premium apparel brand.

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Why a loyalty program?

This is a proven way to turn passive browsers or one-time customers into brand loyalists.

It also doesn’t hurt that it increases customer engagement and helps raise ROI over time. 📈

When it came to its loyalty program, KITH wanted a system that rewarded customers with “experiences, early access, and exclusive products.”

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Here’s how they did it 👇

• The KITH app uses a point-based rewards program: The three-tier system unlocks certain perks for KITH members as more points are accumulated whether online or through their retail stores.
• Customers are rewarded for specific actions: Members receive points when making purchases but also by checking into KITH’s retail locations, subscribing to their newsletter, and even opening the KITH app.
• The promise of exclusivity: On the loyalty program app members get early access to fun collections like the Fruity Pebbles and Lebron sneaker drop and tier exclusives. Custom apparel, footwear, and accessories are designed for each tier which makes their target audience excited and engaged about moving up to the next level.

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Why this works:

• Customers feel recognized and appreciated: KITH’s target demographic is 18 to 35 year olds who love streetwear designs and unique items. By offering exciting collaborations with other brands like Nike, Adidas, and Bose, the loyalty program creates a unique selling point that resonates with their needs.
• Incentives are attractive: Members are motivated to move up to the next tier to gain access to member-only merch designed specifically for that member level.
• Maintain premium position: Rather than relying heavily on discounts, the high-end brand chooses instead to offer other benefits like limited drops and early access to collections.

When creating your loyalty program, try and pinpoint what your customers will get out of joining the program so they feel more plugged in with the brand and your community. 💗

‍GLOBAL COMMERCE

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• Improved conversion with a better customer experience.
• A better shipping experience (and more repeat buyers!).
• Regulatory assistance to save you time, money, and stress.

Global commerce can seem complex, but with Passport Global it doesn’t have to be…

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‍PODCAST

🎧 Meta Ads State of The Union 2024

In this episode of the pod, we catch up with Nate, Taylor, and Jacob from the Pilothouse team on the state of Meta Ads in 2024 and the 'treat yourself' economy.

While CPMs and CPCs are up a little year over year, spending is fairly flat but AOV is cranking! 🚀

Jacob explains: “One of our clients is doing about 75% of their sales through Facebook Shops. Meta’s sending people to the shop since that’s where people are converting so it’s worth testing out.”

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In this podcast, we cover:

• Why you should be testing multiple different offers
• How to make use of your ad credits and deal with spending bursts
• Combating post-Valentine’s Day hangover
• Latest updates with Meta’s AI Tools

👉 You can listen to the full episode here.

‍🌐 IN THE SOCIAL SPHERE

Scaling a business comes with a lot of growing pains.

The key is managing expectations, forecasting demand, and growing more slowly so there's plenty of products in stock to meet your sales goals.

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‍🧰 THE TOOLKIT

📈 Ready to drive more orders, faster? Predict patterns in your shoppers’ behavior and discover untapped revenue in your Shopify store. Book a 30-min. consultation and get a $100 digital gift card. *

👏 SMS campaigns that click get clicks. Generic SMS campaigns that don’t click get ignored... Stop wasting your money on broad messaging — Learn how to segment your audience with personal attributes for REAL connections. *

‍📰 NEWS

• Google Ads will automatically pause ad groups with low activity to help improve budget efficiency.
• Ads aired during gaming live streams have a higher brand recall rate than other ad channels.
• 78% of X’s ad traffic during Super Bowl weekend was from bots.

‍SPONSOR DTC

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‍Have you heard our latest podcasts?

• 👚 Oren John on Launching a Premium Niche Fashion Brand
• 💰 AKNF 381: The Ultimate CRO Framework for Media Buyers
• 🧦 Streamlining Success – Outway's Taylor Fraser on Simplifying to Scale Ecommerce
• 👀 AKNF 379: TikTok Shop Affiliates: The Time Is Now
• 🔗 Ezra Firestone on Proactive SEO and Brand Acquisitions
• 📈 AKNF 377: Spilling our Performance Max Google Ad Secrets

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Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)

‍DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

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