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Loyalty trends and best practices

Loyalty Makeover: Fanatics

by Ashley Bienvenu
March 10, 2014
Loyalty Makeover: Fanatics

In this installment, we look at the loyalty program at Fanatics Inc, the $1 billion sports merchandising online retailer that also provides e-commerce services for professional teams. 500friends Loyalty Makeovers offer suggestions to retail brands for making the most of their loyalty initiatives. What Fanatics Rewards look like today: Fanatics’ Fan Cash rewards are essentially discount credits applied to members’ future orders. For each purchase between $50 and $100, members earn a future discount worth 5% of the total; for purchases over $100, they get a future discount worth 10% of the total. Fan Cash is automatically credited to members’ accounts and doesn’t expire as long as members make at least one purchase per year. Members also get free three-day shipping. First impressions: At #43 on the IR 500 list with sales of around $1 billion, Fanatics is becoming a major e-commerce player. However, after its key acquisiti... Read more

Spa Week named Loyalty360 Award finalist

by Ashley Bienvenu
March 04, 2014

I'm happy to announce that Spa Week, a 500friends client, was recently named a finalist for the Loyalty360 Awards' Creative Campaign in Loyalty Marketing. Spa Week integrated its rewards program into series of seasonally-themed creative campaigns that effectively drove program acquisition and engagement. The comprehensive creative campaign directly complimented the company’s core positioning, which promotes a healthy, well-rounded lifestyle 365 days a year.... Read more

Loyalty Makeover: JCPenney

by Zach Woith
March 03, 2014
Loyalty Makeover: JCPenney

In this installment, we look at the loyalty program at JCPenney, the $12 billion department store chain with 1,100 stores and $1 billion in online sales. 500friends Loyalty Makeovers offer suggestions to retail brands for making the most of their loyalty initiatives. What JCP Rewards looks like today: JCP Rewards members accrue one point for every dollar they spend. For every 100 points they earn in a calendar month, they receive a $10 coupon towards future purchases (up to a maximum of ten $10 coupons per month). At the end of every month, point balances reset to zero. First impressions: With a 2013 operating loss of over $1.2 billion, investing in customer retention and loyalty may seem like a luxury for JCPenney. However, to really get back on track, the embattled department store chain will have to prop up its gross margins, which fell to 29.4% in 2013 (typical department stores gross margins hover in the mid- to up... Read more

Loyalty Makeover: Ace Hardware

by Arif Damji
February 28, 2014
Loyalty Makeover: Ace Hardware

In this installment, we look at the loyalty program at Ace Hardware, the $3 billion hardware store co-operative with 4,700 locations. Loyalty Makeover offers suggestions to retail brands for making the most of their loyalty initiatives. What Ace Hardware's loyalty program looks like today: Known as Ace Rewards, the Ace Hardware loyalty program rewards members with in-store discounts ("Instant Savings ") and a points currency for all purchases. Members collect 10 points for each dollar spent and get 1,000 points for enrolling. Once they reach 2,500 points, they receive a coupon for $5 back on their next purchase, equating to a 2% funding rate. The private label Ace Rewards Visa Card allows members to augment their Ace Rewards point balances with up to 10 points per dollar spent. First impressions: Ace Rewards is unusual among retail loyalty programs in that its benefits include both a preferential member price as w... Read more

Loyalty Makeover: Staples Rewards

by Zach Woith
February 25, 2014
Loyalty Makeover: Staples Rewards

In this installment of Loyalty Makeover, we look at the loyalty program at Staples, the $24 billion office supply retailer with more than 2,000 stores and over $10 billion in online sales. Loyalty Makeover offers suggestions to retail brands for making the most of their loyalty initiatives. What Staples Rewards looks like today: The core value proposition of Staples Rewards is 5% back on purchases. Customers receive the 5% reward once they hit a minimum quarterly spending threshold; if they fail to hit the quarterly threshold, they stop receiving the reward. Other notable elements of the program include 3 status tiers, free shipping (with no minimum), exclusive offers, and benefits tied to the ink category, which has elevated significance to both Staples and its customers. First impressions: In its most recent earnings call (on Q3 2013 results), Staples said its revenues and margins had dipped slightly (2% and 0.... Read more

Loyalty Makeover: AutoZone

by Zach Woith
February 20, 2014
Loyalty Makeover: AutoZone

n this installment of Loyalty Makeover, we look at the rewards program at AutoZone, the $9.1 billion automotive parts retailer with more than 5,000 stores. Loyalty Makeover suggests ways for retail brands to make the most of their loyalty initiatives. What AutoZone Rewards look like today: Members sign up for AutoZone Rewards at a physical store, where they receive a Rewards Card linked to their account. For each purchase of $20 or more, online or in-store, members earn one "credit." When members accumulate five credits, they receive a $20 voucher for in-store redemption. The expiration period for credits varies by state, however in most states members must earn their 5 credits within a 6-month period and redeem vouchers within 3 months. First impressions: AutoZone's financial performance has been fantastic over the last 12 months, with its stock jumping more than 42%. That said, the company could be doing even better... Read more

Loyalty Makeover: Coldwater Creek

by Ashley Bienvenu
February 18, 2014
Loyalty Makeover: Coldwater Creek

In this installment of Loyalty Makeover, we look at the rewards program at Coldwater Creek, the struggling $743 million women's apparel retailer with nearly 400 boutiques in the United States. Loyalty Makeover suggests ways for retail brands to make the most of their loyalty initiatives. What Coldwater Creek Rewards look like today: Every time a Coldwater Creek Rewards member makes a purchase at Coldwater Creek, whether at a retail location or online, the amount is recorded in her Rewards account. Upon sign-up,members receive special promotions and coupons, as well as an in-store stylist, easy checkout and returns, and the Coldwater Creek newsletter. When a member's purchases reach $400 in a 365-day period, she qualifies for ONECreek status, which grants free return shipping and a $20 birthday gift card. The top status tier, Elite, has a $1,000 purchase threshold (also over 365 days) and adds free shipping on a... Read more

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