Various brands launch various types of loyalty programs at various times. Many of them are similar in their offerings, proving little differentiation.
But last week Famous Footwear launched a new loyalty program called Famously YOU Rewards that hits on key incentives that we think will boost engagement.
Some of those key program assets include instant benefits, flexibility based on customer wants, omnichannel, and exclusivity. What’s more, the program has a sort of paid tier for customers who spend $200 or more per year.
Enhancing customer connections and adding value are two other key themes of Famous Footwear’s new loyalty program.
Molly Adams, president of Famous Footwear, said: “We’re increasing our focus on customer loyalty to ensure members feel valued, are rewarded with our best savings, and receive communications that are more engaging.”
1. Listening To Customers Pays Off
It may sound cliché, but truly listening to your customers might be the most important thing a brand can do when it comes to building a successful loyalty program.
Famously YOU Rewards was built on insights brand officials received from extensive customer research that focused on what customers want most in their loyalty program.
The first new benefit–free shipping for online orders, every day for all members, with no minimum–was pre-released in mid-February.
The program has a two-tier structure: Star and Superstar (those who spend $200 in 12 months), with Superstars earning points 50 percent faster. It also offers better birthday gifts, and double points for purchases made during the member’s birthday month.
There are also bonus points days throughout the year, giving members more opportunities to build points faster; and additional opportunities to be rewarded for specific behaviors, which will increase reward earning potential through points.
A key point here also is the program’s flexible redemption: This allows members to create and redeem Reward Cash anytime, whether shopping in stores, on famous.com, or on the Famous Footwear app.
2. Instant Benefits
Who doesn’t like instant benefits in a loyalty program?
Points are a proven way of measuring progress or status, but consumers now want instant benefits. The world is getting faster and loyalty programs need to respond to this trend. And Famously YOU Rewards does just that.
Instant discounts, free shipping, free upgrades, and member-only deals are the types of benefits that let your customers experience value every single time they shop.
3. Omnichannel
The program adds a nice omnichannel element here.
The free shipping benefit encourages the program’s more than 11 million active members to shop across channels and attracts new customers in a competitive online shopping environment.
The new program awards members bonus points when they purchase online or engage in the app.
Having an omnichannel component in your loyalty program can only elevate the appeal of your offering.
4. Exclusivity
This program also adds an exclusivity component that is critical in a loyalty program. It engages people and, when they are members, they truly feel like they’re part of an exclusive club.
When your customers feel that exclusivity from the program, they become more committed to your brand and will engage more frequently. That leads to higher AOV and order frequency for your brand.
When your best customers engage and spend at very high levels, and share your brand message, the value they represent is almost immeasurable.
Recommendation
This program hits all the right notes and is on track to ramp up engagement levels.
One recommendation would be to consider adding a premium tier, which can co-exist nicely with the free program, and make your best customers exponentially more valuable.
Casual customers that are only interested in signing up for a free program might not care about elevated benefits, but your best customers will. And once customers are in the free program, it becomes easier to convert them to premium loyalty program members.
Adding a premium tier would take this excellent program to another level.
ebbo
ebbo helps brands achieve their customer loyalty goals with full-service, end-to-end solutions and also creates original educational content straight from the experts to help loyalty marketers stay on the cutting edge of customer engagement.