As a marketing manager, you know the challenge of keeping up with today’s digital, multi-channel consumer. You also know how tough it can be to track and identify the customers who are most loyal to your brand. But you may not realize just how big a role the latest technology can play in creating a loyalty program that not only rewards your best customers, but also helps you acquire new ones. Just take a look at how it worked for Off Broadway Shoes.
A Brief Backstory
For several years, Off Broadway Shoe Warehouse offered its Encore Rewards program. Members were able to earn 10 percent off their next purchase, and it was redeemed by keeping their receipt and showing it to the cashier.
Although feedback from members and store personnel was generally positive, the program had issues. Wear and tear on the receipts made them difficult for store personnel to read. And if a customer lost a receipt, there was no way to replace it, so the member lost the reward, too. For most of the Encore program tenure, there was no expiration date on the discount, making it difficult for Off Broadway Shoe Warehouse to manage program margins. Most importantly, the program also didn’t offer a way to capture important customer data and information.
It was obvious that the rewards program was ripe for improvement.
The Turning Point
Off Broadway turned to Customer Communications Group, Inc. for help in updating and refining its approach to loyalty. Among its goals, the retail chain wanted to develop a way to track all customer behavior, while catering to modern, multi-channel, digitally savvy consumers.
CCG worked closely with Off Broadway to develop a rewards program that addressed those objectives and carried a strong appeal to customers. The result? A mobile-based program that allows customers to enroll by providing a mobile phone number or an email address.
The value proposition is simple and straightforward: Members earn 10 points for every dollar spent and receive a $15 reward for every 2,000 points earned. For ultimate member convenience, it’s a cardless, paperless program. And, unlike some competitors’ programs, an Off Broadway reward can be used on any merchandise in the store. The program also offers members a birthday gift, bonus opportunities and exclusive event invites.
To ensure a smooth transition into the new rewards program, CCG worked with the company to create a detailed plan outlining each step of the process, from initial store communications to the date of the last possible receipt redemption.
Numerous Advantages and Winning Results
While some store personnel were still nervous about the transition into the new rewards program, the July 2013 launch ran smoothly, and overall customer feedback was positive. Most important, the program achieved the company’s initial goals — and then some. For instance, it allows Off Broadway to do the following:
- Collect more member data than before
- Achieve better margin management
- Target bonus points and used them to drive behavior
- Leverage trigger emails to drive behavior, such as alerting members when they are close to earning a reward or letting members know a reward is about to expire
Today, membership is pushing 2 million and members make up 60 percent of sales. Reward members spend more and visit more frequently than non-members. In short, the program has been an unqualified success. And to make sure it doesn’t go stale, CCG continues to work with Off Broadway to investigate additional member benefits and the value of adding more personalized, relevant communications.
Are you looking to revamp your rewards program and gain more members? Let the CCG team come up with a winning program that works for your company.
Customer Communications Group, Inc., is not responsible for products or services offered by third parties or websites mentioned and provides such information and sites solely for your convenience.