The adventurous lifestyle retailer North Face is positioning itself as an experience-oriented brand through its VIPeak consumer loyalty program, which takes an interesting approach to point redemption.
Much like other loyalty programs, consumers earn points each time they make an online or in-store purchase. Once a sufficient number of points have been earned, North Face's system allows consumers to use their points to redeem experiences, as appose to discounted clothing items. Some of the experiences or activities include: entry into the brand's endurance challenge marathon, rock climbing lessons, an exclusive trip for two to Nepal and an opportunity to camp out in a national park.
This experience-oriented reward program may encourage a consumer to continue to make retail purchases, through the use of emotional loyalty, that offers experiences, over products.
Experience-Oriented Loyalty Programs
North Face's 'VIPeak' Lets Consumer Redeem Experiences
Trend Themes
1. Experience-oriented Loyalty Programs - North Face's VIPeak loyalty program shows the trend of offering experiences instead of traditional rewards.
Industry Implications
1. Outdoor Retail - Outdoor retailers like North Face can disrupt the loyalty program industry by focusing on experiential rewards.
2. Travel and Adventure - The travel and adventure industry can capitalize on the trend of experience-oriented loyalty programs by offering unique and exclusive experiences.
3. Sports and Fitness - Sports and fitness industry can adopt the trend of experience-oriented loyalty programs to engage and retain customers by offering unique sports and fitness experiences.