For a long time, loyalty programmes in retail have been hit and miss. Many cost more than they return, while others fail to resonate with customers beyond short-term discounts. At New Look, we set ourselves a clear challenge: build a scheme that genuinely changes customer behaviour, reduces reliance on markdowns, and increases profitability all while creating experiences that make customers feel valued.
The Challenge
Loyalty had been on New Look’s agenda for some time but never got off the ground due to technical constraints and perceived risks. The core challenge was to design an enrolment-based programme that encouraged customers to shop more often, while also shaping purchasing patterns in a way that made the business less dependent on discounts.
At its heart, the programme needed to strengthen customer connection with the brand and not just reward transactions.
The Approach
We chose to start lean. By building an app-only MVP, we could validate customer appetite quickly without heavy investment.
The initial value proposition combined simple member pricing with experiential perks such as early access to sales and competitions. To move fast, we prioritised engagement as our lead indicator of retention, a proxy that would give us rapid signals on whether the scheme was working.
We set ambitious goals to guide us:
- Enrol 25k members by March 2024.
- Run a controlled app-only experiment to prove behaviour change.
- Explore multi-tier options to serve different customer segments.
- Scale profitably to 250k members by the end of 2024, and to 1 million by 2025.
The Solution
The MVP launched in late 2023 with a streamlined in-app signup journey and a compelling benefits package. Within weeks, adoption exceeded expectations.
By June 2024, membership had grown to 57k, up from just 13k in February. The scheme, branded Club New Look, was integrated into CRM and trade calendars, with loyalty now embedded into day-to-day operations.
The digital experience also evolved:
- Member pricing became visible across the shopping journey.
- Personalisation features were added, such as greetings, savings to date, and tailored offers.
- A Club Pass was designed for the app wallet, enabling store identification and redemption.
At the same time, governance matured. Four workstreams were established; covering experiments, engagement, data foundations, and scaling, supported by a dedicated product analyst and weekly syncs to maintain pace.
Key Contributions
- Delivered an improved app signup journey, lifting conversion to 16% (target 15%).
- Designed and ran the Q4 experiment, achieving a 42.7% uplift in app visit frequency.
- Demonstrated a 28% incremental revenue uplift against control.
- Integrated loyalty into BAU calendars and processes, ensuring scalability.
- Expanded UX and CRM touchpoints to deepen engagement and prepare for web and in-store rollout.
Measurable Impact
The results of our early tests were compelling:
- 27k signups by March 2024 (ahead of target).
- 57k members by June 2024, with organic growth continuing post-experiment.
- 42.7% uplift in app visit frequency across test groups.
- 28% increase in revenue compared with control.
- Forecast contribution of £Xm incremental spend in H2 FY25 as membership scales to 150k.
Learnings
Like any new 0-1 product, building Club New Look came with valuable lessons:
- Start lean, then expand — app-first testing gave us speed, but also highlighted risks in relying on non-representative cohorts.
- Experience matters as much as discounts — perks like birthday treats and exclusive events create emotional connections without heavy margin erosion.
- Team is everything — missing hires in tech and CRM slowed progress; embedding the right skills early is crucial.
- Governance drives pace — structured workstreams and centralised planning kept delivery on track.
- Retention > acquisition — the real opportunity lies in keeping members engaged over time, not just getting them signed up.