Decker brand UGG, best known for its UGG Boots, kicked off a new loyalty program on Tuesday with the launch of UGG Rewards, a points-based program set to engage customers both online and in-store. The launch timing comes as no surprise, as the company’s peak season comes in the colder months of fall and winter.
 
The announcement comes only days after shoe retailer Zappos announced the launch of its own loyalty program, Zappos Rewards. The program seems to incentivize shopping directly with the UGG brand, however, awarding points based on engagement on the site. Three points are awarded for signing up on the UGG website, for example, and more can be earned through actions like adding items to a wish list and sharing the brand through social media.
 
“UGG Rewards is based on a simple concept – reward our loyal customers for engaging with us regardless of purchase,” explained Carma Caughlan, Director of Customer Engagement and Loyalty. “Customers want choice and achievable benefits. Our new program delivers both while adding a layer of community by giving customers the opportunity to collect additional points for social sharing.”
 
This kind of point earning has grown more popular as of late, giving customers additional opportunities to feel engaged with the brand beyond just making purchases.
 
“As a customer-centric brand, UGG Rewards was created as a means for engaging with our customer beyond a purchase” a brand spokesperson told Loyalty360. “The program offers us an opportunity to grow a more meaningful relationship with our customers so we can better engage with our customers.”
 
While many companies opt for aspirational rewards to keep the customer focused on earning more points, UGG went a different route, offering easy-to-earn rewards and tangible value in the form of a $20 credit for every 10 points earned. This tactic is a proven way to retain customers within the program; according to the 2016 Bond Loyalty Report, members who don’t redeem their points are more than two times as likely to defect from the program as those who do.
 
The goal of UGG rewards is twofold: To encourage engagement from customers who may have not felt the need to in the past, and to encourage a sense of community among shoppers. Through the use of socially-triggered point rewards, shoppers have more incentive than ever to buy into brand advocacy and advance the brand for next to no additional cost from the company.

Recent Content