\r\n\r\n \r\n\r\nASOS launched their new loyalty program this year. It’s called ASOS A-LIST.\r\n\r\nA-List launched on 24th February 2016.\r\n\r\nIn eCommerce nothing matters more than customer loyalty, repeat business is what has made ASOS grow into the number 1 destination for online fashion. What is better than to encourage repeat business than a loyalty program! Well done ASOS, good move!\r\n\r\nIn this ASOS post we’ll take you through the key features of the ASOS loyalty program and provide our view.\r\n\r\n\r\n\r\nWhat does the program offer?\r\n\r\nASOS A-LIST is a points based loyalty program. Shoppers earn 5 points for every £1 spent. Once a month a customer’s points are converted to vouchers and emailed to them, for instance if they have earned 500 points they will be sent a £5 off voucher which can be entered at checkout. Vouchers are issued in £5 increments and expire 6 months after the date they are issued.\r\n\r\n\r\n\r\nHowever, ASOS have gone one step further than just vouchers and have implemented tiers, called ASOS A-LIST Levels. Shoppers are entered into a tier based on how much they spend, for example, £200 gets you into Level 2. There are four levels and shoppers earn different rewards depending on the level. Shoppers stay in the tier for 12 months, after 12 months they are demoted out of the tiers and have to earn the tier points again.\r\n\r\n\r\n\r\nASOS offers various rewards through the tier levels including, free next day delivery, 24 hour early access to sales or a reward from a partner, like ‘win with Krispy Kreme’. These rewards don’t require points and are available to anyone who reaches that level.\r\n\r\n\r\n\r\nWhat’s good with the ASOS A-List Program?\r\n\r\nTiers:\r\n\r\nTiers are a great way to reward the most loyal customers and to provide other shoppers with an incentive to shop more. The ASOS tiers are fairly achievable unlike a lot of airline tiers so shoppers will see the value.\r\n\r\nNon-monetary rewards:\r\n\r\nGiving non-monetary rewards has a lot of benefits, the first being it doesn’t cost ASOS anything. Also shoppers tend to attach a higher perceived value to something like early access to a sale. Finally some of these non-monetary rewards can actually increase revenue. For example, if you invite your most loyal customers to purchase from the latest season’s clothing first, they’re going to appreciate the opportunity to be first and spend more.\r\n\r\nWhat could ASOS do better?\r\n\r\nOnly rewarding purchases can be limiting:\r\n\r\nShoppers only earn points for what they spend. They earn nothing for their activity, such as creating an account, referring friends or connecting with Facebook. At LoyaltyLion we encourage retailers to reward engagement as well as expenditure because engagement with your brand will lead to deeper loyalty.\r\n\r\nForced redemption restricts choice:\r\n\r\nEvery month a shopper’s points are converted into vouchers e.g. if they have 500 points they will be sent a £5 voucher. This means the shopper cannot decide when to exchange their points. At LoyaltyLion we have observed that shoppers enjoy saving their points so they can redeem them for larger rewards.\r\n\r\nWaiting periods can be aggravating:\r\n\r\nCustomers have to wait 29 days to use their points. The reason ASOS does this is to limit abuse, for example, if there was no waiting time shoppers could buy a product, earn points, use those points and return the original item. LoyaltyLion offers the same functionality, however we have observed little abuse. There is also a negative consequence of this waiting period: shoppers become aggravated and confused. This reduces the positive emotion a loyalty program should generate. Most of the stores using LoyaltyLion have significantly reduced this waiting period or removed it altogether.\r\n\r\nA cap on points, only caps the loyal:\r\n\r\nASOS limits customers to only 5,000 points a month, which means the most loyal will be punished.\r\n\r\n