Lululemon has announced two programs aimed at improving repeat purchase (loyalty and LTV) within one month of each other; (1)a trade-in program for lightly used clothes, called “Like New,” and (2)a membership program.
1. The “Like New” trade-in program: is useful in; (a)prompting current customers to trade-up and repeat purchase, while (b)widening the customer base to younger, less affluent groups, by offering lower cost product options. This program is well designed for customers with a neutral-to-negative outlook, as it facilitates brand participation at a lower cost.
2. The membership program: is more about tapping into the most valuable customer groups and extracting more from already strong commitments to the brand. This program is also well suited to customer cohorts who have a neutral-to-positive outlook.
As recessionary headwinds grow, look for more brands to rollout similar programs.
The membership program has a free version offering customers early access to new products, exclusive items and invitations to community events. The paid version (priced at $39 per month) will be merged with the benefits currently extended to Mirror subscribers - namely, access to workout classes and content.
This effort is largely about helping to increase and expand the audience for Mirror. But, its also about