Yahoo Finance EXCLUSIVE: Rakuten Launches Invite-only Membership Program for Luxury Shopping
Rakuten is looking to enhance its place in the luxury shopping arena and is launching a paid membership program for luxury shoppers this September.
Called Rakuten+, the program will allow invite-only shoppers to earn 10 percent cash back from participating brands and retailers year-round. The program is meant to be a channel for luxury brands to speak directly to shoppers, and participating designer brands will be able to leverage the higher cash back offers to grow their audiences and inspire repeat purchases.
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Dana Marineau, chief marketing officer at Rakuten Rewards, said that as a company whose core audience is Millennial women, Rakuten recognizes the significant role that designer and luxury retail plays for its members. With that in mind, the company has made substantial marketing investments to this audience and aligned itself with top designer brands.
Julie Van Ullen, chief revenue officer at Rakuten Rewards, added, “Rakuten+ allows [high-end] brands to appeal to a new generation of designer brand shoppers without the need for discounting or promotions. Beyond the incremental value that elevated cash back can deliver from a sales perspective, Rakuten+ is an integral part of our product portfolio geared toward helping designer brands establish and engender lifelong loyalty. Rakuten is more than just a cash back company. We’re a full-funnel, loyalty partner equipped with advanced back-end technology, a hyper-loyal member base and unparalleled first-party data as the largest cash back publisher in the industry.”
Rakuten+ will be an invite-only membership program. Full terms and subscription fee have not yet been announced, but the membership base is expected to consist of Rakuten’s most loyal and active shoppers, especially those who shop for designer brands and spend more money.
Rakuten+’s potential members have a 70 percent increase in average order value and make nearly 4.5 times as many purchases compared to the average Rakuten user, the company estimates. Additionally, these shoppers report that 60 percent of their dollars are spent with almost half of their purchases at luxury merchants.
“These members trust us to connect them with brands that resonate with their tastes and offer incentives that keep them returning time and again,” Van Ullen said. “Rakuten+ members represent a carefully curated group of loyal Rakuten shoppers who frequently purchase designer brands and spend more with each transaction.”
Van Ullen said the launch of Rakuten+ is coming at an “ideal moment for designer brands and retailers,” many of which have been navigating a challenging economy. “These brands are navigating unprecedented economic and industry challenges as emerging luxury sectors like resale and sustainable fashion gain traction with younger audiences.”
“Designer brands now face a critical decision: continue to depend on their traditional legacy customer base, or pivot to engage and build relationships with the new wave of consumers early on,” she said. “With Rakuten+, we can help these brands find high-quality new shoppers, cultivate loyalty and ensure long-term success with a new generation of shoppers. We’re excited to see how our partners leverage this new exclusive platform, alongside our other capabilities, to maximize their investments.”
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