In an interview with PYMNTS, Hannah Harper, the digital marketing manager at Leatherman, sheds light on the company's focus on loyalty and how it benefits both the company and appeals to customers seeking rewards for products that aren't typically purchased frequently.
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GLOWith loyalty programs now being so widespread, the challenge for brands is how to introduce their own loyalty solutions and set themselves apart in a competitive market. The key often lies in the uniqueness and demand for the product or service they offer, and this is precisely the approach that Leatherman is embracing.
In an interview with PYMNTS, Hannah Harper, the digital marketing manager at Leatherman, sheds light on the company’s focus on loyalty and how it benefits both the company and appeals to customers seeking rewards for products that aren’t typically purchased frequently.
“Like many brands, we are continually exploring ways to pleasantly surprise our customers. We’re exploring ways to enhance this. Implementing a rewards program was a natural step for us,” Harper explained.
Loyalty in the Context of Durable Products
Products that are not bought frequently, such as appliances, electronics, or tools, often come with a significant upfront cost. Loyalty programs for such products can incentivize consumers to choose a particular brand for their next purchase. By offering rewards or discounts to returning customers, businesses can foster loyalty, even in industries characterized by long buying cycles.
For instance, imagine buying a high-end smartphone with a loyalty program that guarantees a substantial discount on your next upgrade. This not only ensures that you’ll stick with the same brand for your next phone but also eases the financial burden of staying current with the latest technology.
“For us, it was more about strengthening that one-on-one relationship and offering more personalized experiences,” Harper emphasized.
Harper mentioned that Leatherman caters to a diverse range of customers. Among them are dedicated fans who collect each new product release, earning the title of “everyday collectors.” Additionally, there are customers who purchase one or two items for themselves but eventually become frequent gift-givers for the brand, with Leatherman becoming their preferred choice for gifts.
Leatherman’s findings align with the insights shared by Ranjeet Bhosale, vice president of customer marketing and operations at The Home Depot, who discussed the Atlanta-based home improvement retailer’s tiered benefits program. Bhosale highlighted the importance of balancing transactional benefits (perks and rewards) with experiential benefits to drive customer loyalty.
In today’s landscape, consumers are seeking more significant benefits from their loyalty programs, desiring added value and anticipating rewards that go beyond their purchases.
The Value of Leatherman’s Loyalty Program
Harper explained that Leatherman’s loyalty program comprises three tiers, with program members referred to as “insiders.” The three tiers within the Leatherman Insider Rewards Program are Select Insiders, Premier Insiders, and Elite Insiders. As participants advance through these tiers, they unlock new benefits and experiences.
Members enjoy advantages that extend beyond non-members, including perks like free standard shipping, with minimum purchase requirements varying depending on the member’s tier. The 40-year extended warranty, an enhancement of Leatherman’s initial 25-year warranty, is a standout feature that sets the experience apart.
In conclusion, Leatherman’s loyalty program goes the extra mile to cater to customer needs and offer enticing incentives that set it apart in a crowded loyalty program marketplace.
