ThirdLove Builds CLTV With High-Value Benefits

Customers are willing to pay a premium for products from brands like ThirdLove because they have built a strong reputation based on emotional appeal. Rather than focusing on lowering the barrier to entry, these brands need to prevent churn to the competition by consistently providing more value to loyal customers without reducing the price. Leveraging high-value functional perks enables them to deepen relationships with their most loyal customers and ensure they feel additional value from each new purchase they make.

Profile

Brand:

Thirdlove

Industry:

Lingerie, Fashion & Accessories

Brand Characteristics:

High AOV, high CAC, need to compete in a crowded market with fierce competition

Program Goals:

Prevent churn to competition and consistently demonstrate value without reducing price

Approach:

Functional

Best Practices

Focus on high-value functional benefits to increase the perceived value without lowering cost
Create a tiered VIP program that gives the most devoted customers the best perks
Encourage customers to spend more over time, as premium products often need to be replaced less

Brand Spotlight: ThirdLove

ThirdLove have differentiated themselves in the crowded lingerie market by focusing on comfort and inclusivity, as well as by continuously improving their product line. With customers lining up to buy their next bra, ThirdLove focuses on giving those customers benefits that extend far beyond discounts.

ThirdLove’s tiered loyalty program offers perks like exclusive product access and shipping benefits to add tangible value to each purchase. The benefits increase as customers continue to come back for more: For example, while “Admirers” and “Enthusiasts” can get birthday gifts, only “Devotees” get merchandise giveaways and limited edition product access.

For brands like ThirdLove, customers tend to buy more upfront (and then progressively less over time) because high-quality products need to be replaced less. Because of this, their tiers are specifically designed to encourage shoppers to spend more over the course of their lifetime rather than in a particular year.