Sep 1, 2023 | 2 minute read

How to Drive a 25% Increase in Profit with Loyalty and Exclusivity

In an inconsistent economy, investing in loyalty pays off. According to Bain & Company, even just a 5% increase in customer retention can produce more than a 25% increase in profit. But if you get it wrong, you risk losing customers — 75% of companies either agree or strongly agree that customers are more willing to switch brands if they are unsatisfied. To get loyalty right, think beyond data mining schemes and discounts.

One of the best ways to merchandise toward loyal customers is to provide a level of exclusivity — in the form of early access, unique product drops, and special deals. Product drops in particular are proven loyalty drivers for younger customers — 72 percent of Gen Z and bridge millennial consumers who participated in product drops felt greater affinity for the brand with which they shopped, compared to 67% of customers overall. Flash sales and private sales also significantly drove brand affinity, for 57% and 63% of customers, respectively.

However, managing a loyalty experience isn’t always straightforward — particularly if the rigid catalog experience of the typical commerce platform holds you back. With a composable commerce catalog, you can easily spin up catalogs targeted toward loyal customers, avoiding the delays and custom development work.

We show you how to build a loyalty experience straight out of the box, using Elastic Path’s business user tooling, Commerce Manager— whether you’re looking to:

Set up early access to products for pre-order
Provide speciality products and pricing for loyalty members
Limit access to loyalty customers through rules
And more.

Every loyal customer deserves velvet-rope access and special treatment. With a composable product catalog, it’s easier than ever to set this up quickly — putting merchandisers in the driver seat of their loyalty experience and providing even more opportunities to drive consistent revenue growth.