Rebag takes a page from department store loyalty programs

Luxury e-commerce resale platform Rebag is launching a unique loyalty program for the channel with benefits and tiers similar to luxury department stores such as Neiman Marcus and Bloomingdale’s.

“Our inspiration is exactly that,” founder and CEO Charles Gorra told me. “We’ve looked at a lot of successful loyalty programs and you’re right, there are definitely some in the luxury world, department stores and digital platforms. We wanted to bring that to our customer base so we created a part of our own personalized programming.

Rebag Rewards encourages circularity and customer retention by offering benefits such as the first look at newcomers. There’s also early access to sales, free domestic shipping and returns, special annual discounts, plus surprise rewards like event invites, giveaways, and more. Customers who have traded, sold, or purchased at least $500 worth of merchandise with Rebag are automatically enrolled in the program, which is free to join.

With about 1.5 million people in Rebag’s database, Gorra said, he expects at least 100,000 people to sign up for the tiered loyalty program, which offers various incentives at different levels, including Bronze, Silver, Gold and Diamond, based on the amount a client trades, sells and/or buys over time. Additionally, members will earn points that can be redeemed for future purchases.

“You must be active for the past 12 months on a continuous basis,” Gorra said. “The awards are for engaged and active people.”

“We did a lot of research and looked at what other companies are doing in the broader luxury space, but we also talked to our customers and did a lot of surveys and interviews,” Gorra said. “The number one thing customers want is price-related – a discount – and we certainly have that in there in the sense that everybody’s got a year [discount] code that they can use as they wish. We thought, what else do people want that they value that isn’t necessarily monetary.

The answer is early access, which is at the top of the wish list, Gorra said, adding that it was by far the most requested request. “Because we are a used company, each of our pieces is unique. This creates a lot of urgency because if you miss a coveted item, we don’t have a replacement. We may have something quite similar, but for very specific clients there is a 24 hour preview. If you are ahead of others, you can access the best products.

“In our industry, a big part of the value and a big part of what we pride ourselves on is accessibility,” Gorra said, adding, “making possible something that is rare. The fact that you can access it is extremely valuable, especially when looking for one-of-a-kind pieces.

The Rebag loyalty program allows members to earn one point for every dollar transacted. Points can be redeemed at checkout. Every 1,000 points provides $20 for purchases. Rewards members must have a minimum points balance of 1,000 to redeem. At launch, Rebag will give all customers who qualify for Rebag Rewards 2,500 points or $50 to introduce them to the program.

Members can earn rewards through transactions on rebag.com, at any of the company’s nine outlets, and through the Rebag app. Once-loved items can be sold in 60 minutes by taking advantage of Rebag’s unique upfront payment offer, or by buying and selling an item in one combined transaction using Rebag’s recently launched service: Clair Trade . Clair AI, the company’s image recognition and pricing tool technology, identifies and rates luxury items in seconds, eliminating the guesswork and hesitation that often comes with reselling an item or buying it. purchase of a luxury product.

Gorra said Rebag Rewards and department store loyalty programs aren’t exactly the same. “What’s interesting is that we have this concept, but we’re a two-way street because we also have customers selling to us,” he noted. “The cool thing about our program is that you earn points and level up not only on what you buy, but on what you sell. It really goes both ways.

“Even more interesting is our concept, called Trade, where people can basically buy and sell in one transaction, so if you trade, you sell, and then you buy, you accumulate double points. You are credited with the points associated with your sale as well as the points associated with your purchase. We really wanted to incentivize that customer who then has the behavior to buy and sell. This client is really going to benefit massively from this program.

An example of the benefits includes “a bucket that we’ve labeled as Surprise. It’s for people who exhibit extraordinary behavior, so we can have extraordinary rewards outside of the core program,” Gorra said, adding, “We We were looking at a program where someone sells several hundred products. Sure, we can fly that person into one of our stores. We sometimes privatize our stores. We did sessions when you’re in a certain tier, we can lend you the shop for a few hours and organize a VIP party where you can invite friends.

When asked what Rebag Rewards would cost the company, Gorra replied, “We don’t really see it as a cost, we see it as an investment. It’s sort of the opposite of a cost, because all the rewards are basically in the form of points redeemable through the product, if you will.

“A year from now it’s something we’ll have to measure, but the cost, as you say, is the benefit of the value of the points we give,” he added. “The thesis is that because of this program and the incentives, you increase overall spend and overall customer lifetime. It’s meant to offset and hopefully outweigh the reward. It’s sort of a win-win. The customer gets free products and benefits, but at the same time we reward the customer for it and we are rewarded with more attention and a bigger share of wallet.

Gorra said rewarding customers is necessary in the competitive luxury resale market. “We’re doing something quite unique,” he said. “As we all know it is competitive to acquire customers and so once they are in our ecosystem, our mission is to provide them with an experience that goes above and beyond so that the Rebag platform remains their choice. number one in luxury resale.

“We are thrilled to introduce our first loyalty program which allows us to give back to our customers who have supported Rebag from the start,” said Gorra. “Since we started, our vision has been to fuel the circular economy and facilitate a sustainable cycle for luxury goods. Our new program is designed to support this by rewarding existing customers and incentivizing new buyers, sellers and merchants to resell.