Here’s another loyalty scheme from Gap Inc.!
The American apparel retailer launched a new loyalty scheme yesterday (22 July 2021), which included all of its four reputed brands, namely Gap, Athleta, Banana Republic and Old Navy.
The scheme integrates its credit card rewards with an earlier loyalty scheme launched by the retailer.
Notably, there are 4 tiers that now have perks added as annual spend increases – there’s core (0 to US $ 500), enthusiast (US $ 500 to US $ 999) and icon (more than US $ 1,000).
In a statement released to media, the fashion retailer said that those holding cards can earn 5 points for every US $ 1, compared to one point for the members having no store cards.
Importantly, points are redeemable in US $ 1 (or 100-point increments), which is down from the 500 points required earlier.
Ever since Gap re-introduced loyalty scheme last fall, the retail bigwig has enrolled over 19 million customers. Reportedly, 37 million customers have moved over to new set-up.
The new scheme also makes it easy for the lowest spending ‘core’ members to get free shipping (with an order of at least US $ 50).
That’s another ploy to woo customers, as a recent survey showed that 40 per cent consumers expect free shipping. Many have even said free shipping is preferred over curbside pickup, which gained popularity only recently.
Gap has had a good 2021 so far with its first quarter seeing a surge of 89 per cent in net sales and a net profit of US $ 166 million.