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Loyalty trends and best practices

Loyalty Makeover: Carters and OshKosh

by Ashley Bienvenu
February 12, 2014
Loyalty Makeover: Carters and OshKosh

Loyalty Makeover suggests ways for retail brands to make the most of their loyalty initiatives. In this installment, we look at the rewards programs at Carter's and sibling brand OshKosh. With $2.4 billion in annual sales and 18,000 stores, Carter's has been selling children's clothing since 1865. What Carter's and B'Gosh Rewards look like today: The Carter's and OshKosh brands, which belong to the same company, run separate but identical rewards programs. For every $50 spent in-store with each brand, shoppers earn a $10 voucher towards future purchases of that brand. Rewards become valid one day after a purchase, and can be redeemed in-store upon presentation of a receipt. First impressions: Carter's brands' rewards are simple and straightforward, making their value propositions easy to understand. Customers know that for every $50 spent in a single purchase, they will earn a $10 voucher towards their next p... Read more

500friends LoyaltyPlus: New products and features

by Kaleb Loosbrock
February 11, 2014
500friends LoyaltyPlus: New products and features

After a successful holiday season in which retailers saw an average of 2-3% growth over 2012, many loyalty programs are bursting with new members. So I thought this would be a good time to highlight a couple of new 500friends products and features that can help convert these shoppers into loyal repeat customers. 1) LoyaltyPlus Convert: Turn visitors into loyal customers. Do you present new visitors with a pop up form to acquire their emails? If so, you've probably noticed that conversion rates — let alone repeat purchase rates— for people you engage in this manner tend to be low. To boost acquisition and conversion, check out LoyaltyPlus Convert, a new 500friends product that intelligently engages your site visitors. You can also use Convert to engage with customers between purchases. 2. Enhanced Loyalty Promotions: Keep new members engaged. Research shows that new loyalty program members can di... Read more

Successfully Driving Loyalty at U.S. Auto Parts (IR 100 Retailer)

by Zach Woith
February 03, 2014
Successfully Driving Loyalty at U.S. Auto Parts (IR 100 Retailer)

Leaders in Loyalty shares the insights and experiences of executives who run loyalty programs. In this edition, U.S. Auto Parts VP of Marketing Houman Akhavan discusses selling loyalty to colleagues and structuring rewards. How did you rally support at U.S. Auto Parts for your loyalty program? Akhavan: Acquiring new customers is expensive. I positioned loyalty as a way to increase repeat purchase, and that made a lot of sense to our team. In an industry as competitive as ours, where only around 20% of customers make a repeat purchase within 12 months, loyalty incentives give people a reason to bring us their next purchase. Another benefit is channel diversification. With Google becoming such a dominant source of shoppers, investing in our customers as a new way to grow the business was appealing. How has your loyalty program paid off for the business? Akhavan: One way is that it lets ... Read more

The Healthy Benefits of Kate Somervilles Loyalty Program

by Zach Woith
January 27, 2014
The Healthy Benefits of Kate Somervilles Loyalty Program

Leaders in Loyalty shares the insights and experiences of executives who run loyalty programs. In this installment, Matt Bunn, Director of Digital Marketing at Kate Somerville, talks about the many benefits of the skincare brand's loyalty strategy. Why did you launch the Ultimate Kate Rewards loyalty program at Kate Somerville? Our primary goals are email acquisition, customer retention and increased visitor engagement. Skin care and beauty is a competitive landscape, and most of our retail partners — such as Nordstrom and Sephora — offer their own customer loyalty programs. Ultimate Kate Rewards puts our online presence on a level playing field. Also, because we utilize our program to communicate with our most loyal customers, it elevates the overall brand relationship. Your loyalty program rewards not only purchases, but other activities as well. Can you explain how that drives ROI? We r... Read more

How Build.com's Loyalty Program Builds Profits

by Arif Damji
January 21, 2014
How Build.com's Loyalty Program Builds Profits

Leaders in Loyalty shares the insights and experiences of executives who run loyalty programs. In this installment, Brandon Proctor, VP of Marketing at online home improvement powerhouse Build.com (#80 on the IR500), talks about how loyalty program data can improve acquisition and profitability. Why launch a loyalty program at Build.com? Loyalty programs give you the data to make all kinds of better decisions because you can assign value to — and track — activities outside of a purchase. For example, you can reward customers for posting a product review, for social sharing, or just for coming back to your site a few times each month. All these activities give you the profile data to identify actions that ultimately drive more sales, helping you understand who your customers really are. Retailers love to throw around terms like CLV (customer lifetime value), profile-based marketing, and Big Data, but f... Read more

Loyalty Makeover: Keurig

by Arif Damji
January 15, 2014
Loyalty Makeover: Keurig

Loyalty Makeover offers suggestions to retail brands for making the most of their loyalty initiatives. In this installment, we focus on the loyalty program at Keurig, the single-cup coffee manufacturer, whose annual pod sales have climbed to nearly $1 billion. What Keurig's loyalty program looks like today: The Club Keurig program rewards members with points worth 1% of their total purchases, in addition to special product offers. Everyone who makes a purchase on Keurig.com is automatically enrolled in the program, and points never expire. The program has two tiers: Gold Members: All new members start here, receiving 10% off Keurig beverages. Platinum Members: Gold members who spend $500 attain this level, where they receive 15% off Keurig beverages. First impressions: The substantial 10% discount for Club Keurig Gold members clearly eclipses the value of the program's points giveaways, and given that all customers are aut… Read more

Revenue from Thin Air: How Loyalty Programs Slash Attrition

by Zach Woith
January 13, 2014

Everyone knows that loyalty programs are great at boosting conversion — turning visitors into customers, and customers into repeat customers. But one type of conversion that's often overlooked is reducing attrition. In fact, loyalty programs are unusually effective at turning lapsed customers — people who haven't bought in a long time — into active ones. For retailers, the result can feel like pulling revenue from thin air.... Read more

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