Blog Post - Gary Wilson , Jul 29 2015

We all love a Freebie

We all love a Freebie

I was recently captured by the controversial Harvey Nichols shoplifting video, currently circulating around social media, and it prompted me to take a look into its new loyalty programme; ‘Rewards by Harvey Nichols’.

The video, with the tag line "Love Freebies? Get them legally", features real CCTV footage from the company’s London flagship store in Knightsbridge of customers shoplifting, and aims to show ‘a better way to get a freebie’ - by downloading its app and joining the new Rewards by Harvey Nichols programme.

So what are the facts behind the programme? There is no physical loyalty card; the programme is focused purely around a mobile app. A points based programme of tiered rewards, the more you spend the more you receive. The introductory tier, requires no immediate spend, the highest, requires an annual spend of £10k to access and delivers a stackable range of lifestyle services, perks and indulgent experiences. Rewards can be accessed, and are updated, every 3 months.

Why take this approach? Harvey Nichols, like many of their contemporaries’ in the luxury sector, are clearly looking to more fully embrace digital and, recognising the benefits enjoyed by many luxury brands from loyalty card holders, are now understanding the major role that digital can play in developing those loyal relationships.

By offering no physical loyalty card and focusing the programme around the mobile app, Harvey Nichols are demonstrating an appreciation of today’s digital consumer and how they interact with a brand at many and various touchpoints. By selecting the smartphone as the device of choice to ‘manage’ their loyalty programme across all channels, they are also recognising the role played by mobile in enabling and connecting all those touchpoints.

The loyalty card therefore not only becomes the management device, but is also the vehicle providing further inspiring content and engagement with the end user, a clever concept.

Digital consumers are constantly pushing the boundaries for change. Harnessing purchase data and preferences gives the capability to understand customers much more than ever before, providing rich insights into their behaviour. Harvey Nichols is recognising the power of data and by establishing a loyalty club, offering a range of perks and pampering rewards rather than cash discounts, it allows them to capture a greater level of understanding and therefore engage with their customers in a much deeper and more personalised way.

In summary, Rewards by Harvey Nichols promises a programme of indulgent experiences and treats to their most loyal customers in return for them providing a rich stream of data that offers insight into their lifestyle habits and purchasing preferences.

Download the App and find out more here.