Lululemon Announces New Loyalty Program

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Lululemon has been testing a loyalty program that charges its members $128 a year, a steep rate considering Amazon charges $119 annually for Prime membership, but one the company feels can be increased based on positive early returns and the value it offers.

In a third quarter earnings call, Calvin McDonald, CEO and director for lululemon, told analysts the company hopes the program will net it new customers while taking relationships with instructors, community teams and ambassadors to the next level.

“I’m excited to be working with the teams to create an offering that is unique, disruptive and perfect for lululemon,” said McDonald.

The loyalty program is being tested in Edmonton, Ontario, with guests there reacting positively, McDonald said. He would not elaborate when asked how or when it would be expanded.

Membership benefits include either a pair of pants or shorts designed exclusively for the program, access to classes and curated events, personal development and free expedited shipping on ecommerce orders.

McDonald said he believes there is an opportunity to increase the cost of the program, based on engagement and responses thus far.

“We actually feel we can increase the price to the value of the program and the additional services it offers,” said McDonald. “Most of the first half of 2019 is going to be tinkering with the program, getting the curation of services right. We are super excited and we’ll continue to test and learn around the notion of a membership and the curation of services we offer.”

 

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