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Loyalty trends and best practices

Loyalty Makeover: Abercrombie & Fitch

by Zach Woith
March 24, 2014
Loyalty Makeover: Abercrombie & Fitch

In this installment, we look at the loyalty program at Abercrombie and Fitch, the $4.1 billion fashion retailer with over 1,000 stores, and brands including Abercrombie Kids, Hollister, and Gilly Hicks. 500friends Loyalty Makeovers offer suggestions to retail brands for making the most of their loyalty initiatives. What Abercrombie and Fitch's loyalty program looks like today: Abercrombie and Fitch's loyalty program distinguishes itself from cookie-cutter loyalty programs by embodying the brand's tone and effectively addressing core customers. Benefits include free streaming of music playlists, the chance to skip lines at events, and members-only birthday offers. Limited-time promotional offers keep the program fresh and relevant. First impressions: Abercrombie and Fitch is attempting a turnaround, with revenue dropping 12%, to $4.1 billion, and profit falling 77%, to $54.6 million, during ... Read more

Improve Your Email Marketing with Loyalty: Cardstore's Schedule-Ahead Promotion

by Zach Woith
March 21, 2014
Improve Your Email Marketing with Loyalty: Cardstore's Schedule-Ahead Promotion

One of the greatest benefits of running a loyalty program is the positive impact it can have on your email marketing. In fact, 500friends customers report that loyalty-powered emails can generate up to 50% higher response rates versus regular emails.A great example of how loyalty and email marketing can best work together is a new campaign by our client Cardstore, the online greeting card site owned by American Greetings. In the promotion (creative below), Cardstore offers customers double points for trying out a schedule-ahead feature that makes sending cards more convenient. The campaign is really smart for a bunch of reasons: by offering bonus loyalty rewards for using the schedule-ahead feature — but for a limited time only — Cardstore creates an appropriate sense of urgency, Cardstore is using its loyalty-powered promotion to interact with its customers during a non… Read more

Loyalty Makeover: Office Depot

by Ashley Bienvenu
March 11, 2014
Loyalty Makeover: Office Depot

In this installment, we look at the loyalty program at Office Depot, the $17 billion office supplies retailer with 1,900 stores that recently merged with Office Max. Loyalty Makeover offers suggestions to retail brands for making the most of their loyalty initiatives.In late 2013, Office Depot completed a $1.2 billion merger with competitor Office Max. In this Loyalty Makeover we'll look at both programs, and we'll examine the opportunities in merging them. What the Office Depot and Office Max loyalty programs look like today: Office Depot Rewards lets members earn rewards for purchases of ink, toner, paper and copy/print/ship services. Members can also earn rewards for recycling used ink cartridges and completing member profiles. Members who spend at least $200 in a calendar quarter achieve Choice status, which allows them to earn extra points through purchases, made either in-store or online, for products in up to... 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

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

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

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