Footwear retailer DSW recently restructured its point-based loyalty system and transitioned to a VIP reward program that offers greater benefits to its members -- who exceed the 25 million mark in numbers.
The new system is geared toward providing the best possible experience to both online and in-store customers. Launched on May 9th of this year, the VIP reward program boasts a three-tier membership structure -- Club, Gold and Elite. The basic threshold allows consumers to earn a point for every dollar they spend, $5 off a purchase that is made during their birthday month, as well as free shipping on anything. In addition, DSW motivates customers to be charitable and rewards them with points and perks for in-store shoe donations.
Upgraded VIP Reward Programs
DSW Revamps Its Loyalty System Based on Consumer Feedback
Trend Themes
1. Tiered Reward Programs - Retailers can consider offering tiered memberships with increasing benefits to encourage greater customer loyalty.
2. Incentivizing Donations - Incorporating charitable incentives into loyalty programs can foster brand loyalty while also promoting social responsibility.
3. Online and In-store Integration - Loyalty programs that equally cater to online and in-store customers can enhance the shopping experience and drive customer engagement.
Industry Implications
1. Retail - Retailers can examine their current loyalty programs and consider implementing changes that provide greater benefits and foster customer loyalty.
2. Charitable Organizations - Non-profits can form partnerships with retailers to incentivize donations that not only raise awareness and engagement but also bolster customer loyalty.
3. E-commerce - E-commerce companies can explore ways to better integrate in-store experiences and rewards to improve customer loyalty and retention.