LIDS: Connecting With Your Customer

LIDS sports group is a unique headwear retail store that offers officially licensed and branded headwear of collegiate teams, and of major professional sports teams. A major key factor to LIDS’s success is based on their successful loyalty program. LIDS offers a loyalty program that gives their customers many benefits inside the LIDS locker room store and online. The LIDS loyalty program offers multiple levels of consumer benefits. The more a customer purchases, the higher they will rank in the loyalty program and will receive additional benefits as well as customized service. LIDS sport group uses a proprietary loyalty program that gives its repeat customers a chance to earn points based on volume purchases. Specifically, LIDS offers one point per dollar spent in store or online after a customer registers under the LIDS club program. Basic club members receive discounts and receive special offers through email or text. Club pro members receive larger discounts, priority access to new events and products, and as well, tailored promotions to the customers past purchases and preferences. LIDS utilizes transaction data to reward their loyal customers with preferential and customized treatment. These rewards are established to create the incentive for repeat purchasing at any LIDS location or online. LIDS recognizes their most valuable customers under the club pro membership and they work to establish true customer loyalty with this group. Through repeat purchasing, LIDS customizes special offers related to the customers preferred teams and provides special event notices and deals to those products in effort to create high quality relationships. Such relevant offers to their loyal customer base is the driving force for there repeating purchases. Personalized offers are more relevant to the customer’s needs, which reduce customer search costs. This in turn reduces the overall cost to the customer and as well enhances the customer’s value proposition.

            I find LIDS’s proprietary loyalty program to be a very successful strategy in establishing the greatest of customer relationships. One key point of success LIDS has under their program is keeping true loyal customers as assets. The LIDS club program is excellent when it comes to creating true customer engagement. The club program recognizes who their loyal customers are and will tailor promotions specific to them. LIDS is so successful under their loyalty program because they reward their customers with more personalized offers that contain advanced purchase/reservation opportunities to new products. As well, they offer priority access to limited addition products and VIP events. Such promotional offers enhance the customer’s knowledge about their products, which truly builds value to the customer. Not only does this create a strong value proposition, they enhance their own knowledge of their most loyal customers. In turn, LIDS can create relevant and personalized offers to tailor to the customers who make the business a success.

Sources:

http://www.brwndesign.com/mark-collie-page-2-1/

http://www.lids.ca/HelpDesk/LIDSClub/Benefits

http://www.lids.com/helpdesk/corporate/about

http://www.shoppertrak.com/media/press-release/shoppertrak-selected-by-lids-to-provide-retail-analytics-and-insights/