Inside H&M’s Loyalty Strategy: What Makes Their Rewards Program So Addictive?

Loyalty programs have been an integral part of eCommerce brands’ loyalty strategies. However, reward programs have transformed over the years. 

Moving from only transactions to building emotional connections, and offering highly personalized experiences. Brands that have kept adapting to customer preferences and market trends, have the potential to drive customer lifetime value.

This blog explores the loyalty program of one such brand loved by customers all over the world – H&M’s loyalty strategy. 

We’ll break down H&M’s customer rewards program, understand how and why the loyalty program changed, and how Shopify brands can apply these learnings to enhance their programs.

Let’s get started!

What is the H&M loyalty program?

H&M is a world renowned fashion and apparel brand that offers clothing, accessories, and footwear for men, women, and kids. H&M’s loyalty program is considered one of the best eCommerce loyalty examples. It is free and offers exclusive benefits to members, such as points, discounts, perks, and more. 

The loyalty program is digital but members can earn points for shopping online as well as in store and on the brand’s mobile app. The H&M loyalty strategy has evolved over the years as the brand has incorporated many changes to adapt to customer needs and market trends.

H&M loyalty strategy breakdown
The H&M loyalty program is much loved and popular amongst customers because of many reasons. In this section, we look into the many aspects and elements of the loyalty program that make it so special.

1. Easy sign up process

H&M’s loyalty program is free. Customers can join the program by visiting the membership page on the website, visit the store, or download the app and become a member.

The loyalty program page on the website provides all the necessary information. Customers can easily find answers to their questions from the FAQs section. Customers can see their available points on the website or the app.

The sign-up process requires few details, such as customer email, a password, and birthdate. Members can also add their name and address if they wish to. What is more, as soon as customers join the customer rewards program, they receive a discount reward or points credited to their account.

2. Offers many benefits to members

H&M loyalty strategy is designed in a way to provide multiple benefits and perks to customers. Unlike some loyalty programs that offer just points, H&M offers much more. Here are the different benefits of its loyalty program:

• Points on every purchase online and in store
• Member exclusive prices and discounts
• Member event invites
• Early access to shopping events
• Klarna pay now or later option

3. Two tiers – Core and Plus

Less is more. Today, consumers are bombarded with multiple choices, which leaves them with decision fatigue. Moreover, having too many options complicates things. H&M loyalty strategy is custom designed with two tiers – Core and Plus. 

Both tiers differentiate from each other based on the perks and benefits included in each tier. Core is the basic tier, while Plus is the premium tier. Customers can reach Plus tier once they earn 500 Points. This tiered strategy can also help increase repeat purchases on Shopify stores.

1. Core member benefits

• Free shipping over $40
• Member exclusive prices
• Partner promotions
• VIP event invites
• Early access
• Klarna pay now or later

2. Plus member benefits

• All benefits of Core members
• Early access to collections and sales
• Exclusive experiences
• Exclusive Plus member offers
• Premium giveaways

4. Simple process to earn points

Another reason why this customer loyalty program is so popular is because it has made earning points simple and easy. Customers earn 1 point for every $1 spent online or in store. 

Moreover, customers receive bonus points for non-transactional actions, such as for participating in their sustainability and circularity initiatives. Making it easy to earn points has many benefits:

• If gives customers confidence
• Immediate gratification
• Builds trust
• Increases excitement and engagement
• Adds an element of playfulness

5. It has a sustainability/ circularity element

Fast fashion is one of the leading environmental issues around the world. H&M is one of the few brands that supports the cause of sustainability and circularity. And H&M’s loyalty strategy combines this cause with the loyalty program. 

Members can drop off old clothes in any H&M store. Members are rewarded a 15% discount reward for every bag full of clothes they deposit at the store The clothes are recycled and reused.

This strategy of combining a social or environmental cause with the membership program is something worth exploring for Shopify loyalty programs that want to align with the values and preferences of the current generation.

6. Seamless mobile app experience

Customers can shop via H&M’s mobile app. Members can log into the app to get an overview of their loyalty membership – points collected, expiry date of points, etc.

Customers can make purchases via the app as the brand has their entire collection available on the app. Moreover, the app also enables customers to look for nearby stores, which provides a hybrid experience for those customers who prefer to try on clothes before making purchases.

Members can use the points accumulated whether they shop via the app, the website, or the store. However, for promotional reasons, the brand may also offer points exclusively for shopping via the app. When incorporated into Shopify loyalty programs, all these factors help increase repeat purchases on Shopify stores.

A comparison of H&M’s loyalty strategy: then and now

Recently, H&M made some significant changes to its loyalty program. One of the reasons H&M rewards program is considered amongst the best eCommerce loyalty programs is its ability to adapt and keep evolving. In this section, we look at what those changes are, how it impacts the program, the customers, and the brand, and why these changes were brought about.

Changes made to the H&M loyalty strategy:

• The brand discontinued the 25% birthday discount and the 10% loyalty program joining discount
• H&M loyalty program members now receive ongoing pricing benefits on selected products
• Members get early access to limited editions and other special collections
• Styling consultations, in-store event invites, and members-only previews
• Integration of online and in-store experience, leading to a smoother customer experience 

H&M loyalty strategy: Key takeaways for Shopify loyalty programs

1. The days of only giving discounts and points to loyalty members are gone. Today’s savvy consumers expect more – emotional connection, community, personalized experience, proactiveness, and more.

2. Brands must continuously measure the success of their loyalty program and experiment with new strategies. A traditional loyalty program is not enough to engage diverse customer segments.

3. Keep the loyalty program simple and easy for customers to understand and engage with. An overload of options and complex structures can put customers off.

4. Combine online, in-store, and mobile app systems so the customers can have a seamless, omnichannel experience. Functioning in silos can damage and stagnate rewards programs.

How to get started with your Shopify loyalty program?

H&M’s loyalty strategy has been successful over the years because of multiple reasons. First, the brand knows how to tap into customers’ needs and preferences. Second, the brand keeps adapting to change. Third, it utilizes technology to offer the best customer experience. 

H&M loyalty strategy offers many tips and tactics that you can use for your Shopify loyalty program. And implementing these strategies is easy, thanks to tools such as Appstle Loyalty & Rewards App.

Appstle Loyalty & Rewards App features:

• Allows multiple program types
• Gamification features
• Data-driven personalization capabilities
• Easy integrations with third-party marketing and other apps
• Data safety and security features

If you’re looking for a Shopify loyalty app that can help you implement H&M loyalty strategies on your store, explore Appstle.

Install Appstle Loyalty & Rewards App on your Shopify store today!