The Australian suitcase maker July introduced a loyalty scheme designed to spur repeat buying as the Christmas retail period approaches. Under the July Frequent Flyers initiative, shoppers accumulate points on their spend and can trade them for items from the brand’s collection of suitcases, bags and accessories.
Points and tiers
Shoppers receive a single point per dollar they spend, while raised tier levels provide point-multiplying factors and extra perks such as VIP assistance and complimentary express delivery. July co-founder Athan Didaskalou explained to SmartCompany that motivating repeat buying is difficult because many buyers replace a suitcase only once in several years.
“When you buy from July, you buy for a lifetime,” Didaskalou said. “We sell a lot of other things, too. We sell bags, accessories. But the big one here is gifting.”
The company is also counting on the holiday buying surge to attract shoppers again. “Times are tough at the moment. If you can be rewarded for the Christmas purchases you’re going to make anyway, it would be an amazing opportunity,” Didaskalou said.
Expanding stores
The rewards scheme is launched while July, recognized as a 2022 SmartCompany Smart50 honoree, grows its brick-and-mortar footprint, now comprising 15 outlets across Australia plus a fresh flagship in Melbourne. Didaskalou noted that physical locations provide experiences that e-commerce cannot match, with shoppers typically allocating around half an hour per visit to a July store.
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“The first thing we ask people when they come to the store is, ‘Where are you going?’” he said. “People love that interaction. They love talking about their holidays and where they’re going to go.”
He added that in-store operations have turned into a lucrative growth avenue and a vital element of July’s brand identity. Moreover, the storefronts provide an additional channel to connect with shoppers beyond Meta and Google.
“You’re beholden to Meta and Google ultimately when you’re doing business online, and they provide phenomenal business for us,” Didaskalou said. “But like all things in life, diversification sometimes is a good strategy to protect yourself.”
Didaskalou observed that as additional digitally-first consumer companies open physical shops, those that allocate resources toward store aesthetics and shopper experience will be most likely to thrive. “The disruption is happening in the experience side of things.”
Shoppers earn one point for every dollar spent. Higher membership levels provide point multipliers and additional perks, including VIP service and free express shipping.