myAbercrombie: How Abercrombie & Fitch’s smart customer loyalty tactics drive growth

This time, we’re diving into the customer loyalty strategies behind Abercrombie & Fitch’s impressive transformation from a struggling brand to a modern retail powerhouse. A&F’s meteoric comeback stands out as one of the most remarkable retail success stories in recent years. The proof is in the numbers: in Q3 2024, its operating income surged by 30%, reaching $179 million. 

Abercrombie & Fitch's turnaround is a masterclass in modern retail strategy. Under CEO Fran Horowitz, the brand embraced a customer-first approach, prioritizing quality, fit, and inclusivity while shedding its controversial past.

A&F's transformation has been driven by innovative loyalty and promotional strategies. Its loyalty program, myAbercrombie, isn’t just a feature—it’s a testament to its focus on generating deeper, long-term customer relationships. Today, a huge 70% to 80% of A&F’s customers are members of its loyalty program.

A&F credited its "powerful, modern loyalty program" in its Q3 2024 Investor Presentation as a key driver of its "enterprise-wide digital revolution." Digital-first rewards, partnering with pop culture icons like Olivia Rodrigo, and implementing mobile-friendly engagement tactics have further helped it reconnect with younger demographics.

Let’s unpack the tactics that have made Abercrombie & Fitch’s loyalty program a key driver of its comeback, and what brands can learn from its success.

Abercrombie & Fitch offers a loyalty program with two clear levels: a free-to-join base tier and an exclusive VIP tier for high-spending customers. The VIP tier, which requires a minimum spend of $500 within a membership year, includes exclusive perks such as higher point accrual rates and early access to special events.

This tiered approach rewards loyalty at all levels, ensuring casual shoppers feel valued while incentivizing top spenders with premium rewards.

A tiered loyalty structure unlocks the potential to engage a diverse customer base. By offering value to occasional shoppers and aspirational rewards for top spenders, your business can create a program that feels inclusive yet aspirational. 

The psychological impact of status tiers can’t be overstated, with research showing that tier benefits drive member stickiness and retention by creating status-reinforcing behaviors. These behaviors tap into the human desire for recognition and progression, often outweighing financial perks.

Abercrombie & Fitch’s loyalty program takes a comprehensive approach, rewarding members for far more than just purchases. By incentivizing a variety of actions, it invites customers to engage deeply with the brand at every touchpoint. Here’s how A&F does it: 

Loyalty programs often focus solely on purchase-based rewards, but A&F’s strategy flips the script by recognizing that loyalty is about more than transactions. By incentivizing behaviors like leaving reviews or downloading the app, Abercrombie strengthens customer engagement while gathering valuable zero-party data.

The result? A retail loyalty program that feels less like a one-sided rewards system and more like an invitation to an ongoing relationship. Abercrombie & Fitch shows that when brands reward the whole customer journey—not just the checkout experience—they create deeper, more meaningful loyalty.

By rewarding non-purchase actions, businesses deepen engagement and keep members active between purchases. This approach also increases brand touchpoints, enhancing the likelihood of future conversions.

Abercrombie & Fitch creates exclusivity by offering early access to new product launches and exclusive member discounts. For instance, during its Winter Sale, members received up to 40% off select styles, plus an extra 20% off almost everything—a clear incentive to join and stay engaged.

By giving members these exclusive benefits, A&F ensures its loyalty program remains valuable beyond just points, driving deeper emotional loyalty.

One area for improvement? A&F could adopt a more holistic approach by introducing "member weeks"—annual or semi-annual events packed with a wide array of exclusive deals and experiences. This would amplify the sense of community and exclusivity, making membership feel like a privilege that goes beyond everyday shopping benefits.

Offering early access and special member-only discounts not only enhances the value of a loyalty program but also builds a sense of belonging. This exclusivity creates stronger emotional connections, increasing member retention and lifetime value.

New members of Abercrombie & Fitch’s loyalty program receive a time-sensitive welcome offer valid for one month. This approach encourages immediate engagement, resulting in higher conversion rates and faster integration of new members into the loyalty ecosystem.

Welcome offers with a clear expiration date create urgency, motivating new members to engage with the brand sooner. This tactic significantly increases first-time purchase rates and overall program activation.

A&F’s loyalty program includes a progress tracker that shows members how close they are to earning their next reward or upgrading their status. This visual feedback loop taps into gamification principles, motivating members to continue spending and interacting with the brand.

Abercrombie & Fitch can set its loyalty program apart by adding simple yet engaging gamified elements. Styling quizzes, for example, give customers a fun, personalized way to interact with the brand, turning routine visits into delightful experiences.

A transparent progress tracker is a powerful motivator, encouraging members to make incremental purchases or complete specific actions to reach their next goal. This tactic drives incremental revenue and enhances the overall user experience of a retail loyalty program.

Alongside myAbercrombie loyalty program, A&F recognizes the strategic power of promotions in driving profitability. By consciously reducing reliance on discount-heavy strategies, the brand has identified fewer, more targeted promotions as a key contributor to its profit growth.