Evaluating the Effectiveness of Loyalty Programmes in the Fashion Industry: A Case Study of ASOS UK

Abstract

In the fashion industry, consumers normally shop occasionally at a number of different stores and patronise multiple brands. In the wake of Brexit, however, UK consumers' purchasing power has been reduced. In such a competitive market, companies strived to earn a bigger proportion of consumer expenditures by implanting loyalty programmes. The aim of this paper is to evaluate the effectiveness of loyalty programmes in the fashion industry with a case study of ASOS. Questionnaire was used to collect primary data in order to analyse the effectiveness of ASOS' loyalty programme — "A-list" in terms of customers' behaviour and attitude towards the brand and its programme. And secondary data was obtained from ASOS' annual report to analyse the effectiveness in financial aspect. This study showed that long-term satisfaction (low price, wide variety and good after-sales service) with ASOS promote brand loyalty both behaviourally and attitudinally as shoppers expressed the view that they will continue to shop in ASOS and recommend the brand to their friends. However, customers do not develop programme loyalty; low reputation of "A-list" resulting shoppers perceive low engagement with the programme. Therefore, the presented study could be useful for marketing managers to design and implement loyalty programmes more effectively to increase programme loyalty in the future, and maximise customers' satisfaction to increase brand loyalty both behaviourally and attitudinally.