Loyalty is constantly a hot topic in the retail space. Largely driven by ongoing debates surrounding the effectiveness of card-based loyalty programs, these conversations focus on which retailers are doing loyalty right, and how can others learn from them.
During this week’s Editor Q&A, the RTP staff shares the retailers they believe are succeeding at acquiring and retaining customer loyalty:
Debbie Hauss, Editor-in-Chief: I’ve been a Macy’s shopper for many years. The coupons I receive from Macy’s as a loyal shopper motivate me to look in Macy’s first before trying to find items in other department or apparel stores. Even though I sometimes criticize the retailer for not-the-greatest customer service and a messy store environment, I know I am getting a great deal on quality items, so I am motivated to continue giving Macy’s my business. (Not to say that I wouldn’t be even happier with neater stores and better customer service!)
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Alicia Fiorletta, Senior Editor: What I enjoy most about the Beauty Insider program from Sephora is that it has all the core functions of a successful loyalty program: tiered levels, personalized rewards and VIP experiences. There are three levels to the Beauty Insider program: Standard Beauty Insider, VIB (Very Important Beauty Insider) and VIB Rouge. You have to spend a certain amount of money per year to reach the next threshold, and honestly, that’s half the fun! Not to mention, you have the option of either raking in your points and saving them, or turning them in for free samples and products. Talk about keeping your shoppers engaged! You also get customized deals, perks and experiences based on your loyalty. As a VIB, I get early access to sales and can receive guidance from in-store makeup artists. I also love that your purchases, account information, rewards and even the community, can be accessible on any device, tablet, smartphone or desktop.
Kim Zimmermann, Managing Editor: Lowe’s loyalty program — called My Lowe’s — is not a loyalty program in the traditional sense. You don’t get money back or a free item after reaching some goal. But there are some significant benefits for homeowners, especially during the midst of renovations when things can get hectic. By scanning your card each time you shop, you can store everything you purchased. If you need to return something or find the paint color you used when you painted the kitchen five years ago, the information is all on the card and available online. As a home owner, I’ve found it pretty handy. I am a fan of Lowe’s over Home Depot for a number of reasons, and this is one of them.
Glenn Taylor, Associate Editor: My Best Buy, formerly branded as Best Buy’s Reward Zone, is a pretty simple loyalty program that doesn’t require much of an investment from its members. The loyalty program includes free shipping on items $25 or more that are purchased on BestBuy.com. Depending on the item purchased, shipping costs can be astronomical, making this a good way to encourage members to purchase without buyer’s remorse. For every $250 a shopper spends, the shopper gets an extra $5 rewards certificate to be held over for a future purchase.
Brian Anderson, Associate Editor: There has to be enough of an incentive for consumers to even consider signing up for a rewards program. Amazon, for example, is one of the few major online retailers that offers a reward card that comes with a $30 gift card just for signing up. If that’s not a good enough incentive to opt in, I don’t know what is. It makes perfect sense for Amazon Prime members to sign up for this rewards program, since you earn three points for every dollar you spend on the Amazon site. Every 100 points equals $1, and these points never expire. Having the option to trade points in for cash back, gift cards and travel through Chase makes this reward program too good to pass up.
What retailers do you believe are winning at the loyalty game? Share your thoughts in the comments section below!
