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Loyalty trends and best practices

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: 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

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

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

How Big Is Amazon Now?

by Tiffany Go
December 19, 2013

Last year we created an infographic that showed just how big Amazon had become. I thought it would be fun to update the numbers as we head into 2014 and take a closer look at how customer loyalty pays off for Amazon. Take a look... Read more

Crafting Your Loyalty Programs Business Case: 8 Non-Obvious Benefits

by Dave Louie
December 16, 2013

Like most execs running omnichannel retail brands, you're probably thinking about the business case for loyalty — either to launch a new loyalty program or expand an existing one. Having helped many omnichannel retailers run those numbers, I'm always surprised by the ways in which loyalty acts as a kind of force multiplier, amplifying the benefits of your other marketing efforts. When crafting your loyalty business case, be sure to take these potentially huge — though not always obvious — benefits into account. 1. Higher gross margins The biggest benefit of a loyalty program is that it trains your customers to buy — not to expect discounts. Margin contribution typically grows over time as more members enroll and your team gets smarter about how to most effectively substitute loyalty offers for straight discounts... Read more

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