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- Sneak Peek into Urban Outfitters’ Marketing Strategy (GenZ special)
Sneak Peek into Urban Outfitters’ Marketing Strategy (GenZ special)
☕ The Growth Espresso Edition #83
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🗓️ Friday, 26th Jul 2024
Hi, and welcome back to Growth Espresso - your one-stop destination for everything e-com.
Urban Outfitters skyrocketed from a small shop in Pennsylvania to a global retail giant in just 50 years. Their incredible ability to stay in tune with Millennial and Gen Z culture has allowed them to craft messages that resonate perfectly with their audience, maintaining a strong and consistent connection.
This cultural alignment and understanding of their target market have enabled Urban Outfitters to boost their revenue per customer by an impressive 146%. Additionally, they recognize the immense value of a well-designed rewards program, which plays a crucial role in strengthening brand loyalty and keeping customers coming back.
In today’s edition, we give you a sneak peek into Urban Outfitters’ marketing strategy, uncovering the tactics and approaches that have driven their remarkable growth and customer loyalty.
Let’s dive in.
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Tip #1: Launch a Rewards Program with Exciting Offers
Kobie Marketing conducted a study on customer loyalty and found that:
• 86% of customers join loyalty programs for rewards.
• 78% join for exclusive discounts.
• 78% of Millennials enroll in two or more loyalty programs.
Urban Outfitters recognized the need to strengthen loyalty with their target customers, and a loyalty program was the perfect solution. Here’s how they did it:
Step 1: Deliver a Simple and Nonintrusive Message
Urban Outfitters started by delivering a straightforward, nonintrusive message inviting visitors to join their rewards program. They captured visitors’ attention without disrupting their shopping experience and specifically targeted new visitors with this message to ensure it reached the right audience.
Step 2: Make It Easy for Customers to Earn Points
Urban Outfitters offers customers eight ways to earn points in their loyalty program. Simply signing up earns 50 points, and there’s a 10% discount just for registering. Customers can earn more points by purchasing or reviewing products.
These points can be redeemed for:
• Additional discounts.
• Special offers.
• Exclusive giveaways.
Why We Love This Rewards Program
Urban Outfitters is generous with their points, even offering five points a month just for browsing their app or website.
They also go the extra mile with unique rewards like meet-and-greets with popular celebrities or rare merchandise.
While you might not be able to offer celebrity meetups, you can still use this strategy by providing amazing rewards like:
• Early access to unreleased products.
• Substantial discounts.
• Free merchandise.
The Takeaway
You don’t have to be a large company to implement an outstanding rewards program. By offering exciting rewards, making it easy for customers to earn points, and ensuring your program is accessible, you can boost customer loyalty and drive sales.
Tip #2: Speak Your Customers’ Language
Traditional sales tactics, pushy marketing campaigns, and robotic language don’t resonate with Millennials and Gen Z. Urban Outfitters recognized this and adopted a different approach.
What They Did:
• Use Bold, Attention-Grabbing Colors: Their ads are visually striking, ensuring they stand out in a crowded market.
• Conversational Tone: They speak to shoppers as if they’re talking to a friend, creating a sense of familiarity and trust.
• Discuss Relevant Topics: They address subjects that matter to Millennials, like their promotion of legal cannabis.
For example, in their promotion of legal cannabis, Urban Outfitters used lingo like “Celebrate 4/20” and “keep the good vibes flowin’.”
This language resonates with their target audience, making the message more relatable and engaging.
Your Takeaway:
You might not be promoting legal marijuana, but you should still speak the language of your target customers, regardless of your industry. Here’s how:
1. Read Product Reviews: Check reviews from your customers or similar ones on websites like Amazon or Yelp.
2. Pay Attention to Phrases: Note the phrases they use and their interests.
3. Incorporate Their Language: Use these insights to craft your content and messages.
By following these steps, you can use the voice of your customer (VoC) to connect with them on a personal level.
Urban Outfitters also personalizes their approach with a range of e-gift cards. These cards come in various designs, from artsy to meme-inspired, like the one below.
Urban Outfitters e-Gift Cards
This personalization makes gift-giving fun and aligns with how Urban Outfitters speaks the language of their customers, reinforcing their brand’s connection with its audience.
Tip #3: Create a Community for Your Customers
Why are brands like Urban Outfitters, Gymshark, and Sephora so popular with Millennials and Gen Z? Because they focus on deepening relationships with their customers.
Urban Outfitters’ Approach:
Urban Outfitters built a community on their website, giving shoppers a space to share their stories, shopping experiences, and anything else they wanted to talk about.
You can do this too! Platforms like Facebook make it easy to create a company page or group to connect with followers. Urban Outfitters also collaborates with influencers to design creative content tailored to their audience.
The beauty of community building is that anyone can do it. You don’t need a huge marketing budget to create engaging content. In fact, you don’t even need to use influencers!
For example, if you sell streetwear, you could create videos reviewing your favorite basketball shoes over the years. This is an opportunity to get creative with your material.
How Urban Outfitters Does It on Twitter:
You can do the same by:
• Asking customers to share pictures of products they’ve purchased.
• Solving customer service issues on Twitter or Facebook.
• Asking open-ended questions and encouraging feedback.
Example:
Urban Outfitters asked their followers what music they were listening to while working from home in November 2020. This sparked great conversations and increased engagement, while subtly promoting their record sales.
Key Takeaways:
• Build a community by creating spaces for customers to share and engage.
• Use social media to connect personally with your audience.
• Be creative with your content, and don’t be afraid to get involved in current conversations.
Building a strong social media presence is essential, especially if your business targets Millennials and Gen Zs. Urban Outfitters excels at this by putting substantial effort into their social media content.
Urban Outfitters’ Social Media Strategy:
• Instagram: Their “Back to School” series features college students showcasing their work and living spaces. This content resonates with Gen Z, fostering a connection with this generation.
• Pinterest: Urban Outfitters targets Millennials on Pinterest, where nearly 80% of women and 40% of men in this demographic are active. They share ideas for assembling wardrobes and decorating homes, providing inspiration to their audience.
• TikTok: They use TikTok primarily for fashion videos, engaging both Millennials and Gen Z simultaneously.
Advertising Strategy:
Urban Outfitters designs their Facebook and Instagram ads to align with Millennial and Gen Z shopping preferences.
Their ads don’t look like traditional advertisements, making them more relatable and engaging.
Key Learnings:
1. Know Your Platforms: Identify the social media platforms your target audience uses.
2. Create Relevant Content: Develop content that resonates with your audience on each platform.
3. Engage and Connect: Make sure your content fosters a connection with your audience.
By following these steps, you can use social media to build strong connections with your audience and enhance your brand’s presence, just like Urban Outfitters.
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