If you weren’t looking for it, you could almost miss the fact that Home Depot offers a rewards program for their loyal professional customers, but dig a little deeper on their website and you’ll learn about the ‘Pro Xtra’ rewards program intended as a way for contractors and other professionals to save big. Because of the type of work they do, these professionals have an opportunity to save lots of money based on the fact their job requires them to spend lots of money. What’s especially attractive about Pro Xtra is that in addition to offering savings, it also offers tools specific to professional contractors that makes their jobs easier. Here are some of the benefits and features of the Pro Xtra rewards program:
- Earn up to 20% off all paint purchases: Spend $2000 = Save 10%, $4000 = 15%, $7500 = 20%
- Earn rebates on eligible purchases
- Free tool to track spending with the ability to view and export detailed records of transactions plus storage of electronic receipts
- Free estimator tool with real-time pricing and images
- Discounted Eagle View tool that helps to assess roofing and wall measurements using aerial photography
- Access to Pro Xtra reloadable cards that can be used amongst employees
Although the Pro Xtra program is geared towards professionals, any Do-It-Yourself customer who has taken home building and repair into their own hands can capitalize on these rewards as well. Whether you’re a professional contractor or an individual who spends money working on their home, the Pro Xtra rewards program offers great savings and useful tools to make handy work easier and more affordable. To learn more about The Home Depots Pro Xtra loyalty program you can visit their website.
In the modern technical era that we live in, computers and electronics appeal to a wide array of customer segments. Best Buy has capitalized on this diversity with their ‘My Best Buy’ rewards program by offering four different ways for their customers to save money, meanwhile using some clever techniques to encourage rewards members to utilize the Best Buy mobile app.
The first three rewards offerings are completely based on spending where the more a customer spends, the more benefits they receive from the My Best Buy rewards program. Appealing to their gamer customer segment, the fourth rewards program centers around the purchase and trade-in of video game and related products. Here is a basic description of all four programs:
My Best Buy
This is the base level membership offered for free to anyone who wants to join and has no minimum spending requirements. Perks include: 1 point earned for every $1 dollar spent (250 points = $5 reward certificate); Free standard shipping on any order $25 or more; Returns and exchanges within 15 days; Access to special sales and events.
My Best Buy – Elite
The Elite program is for customers who have spent a minimum of $1500 in purchases and includes even better perks such as: 10% point bonus so every dollar spent is worth more; Free standard shipping on any order; Returns and exchanges within 30 days; Even greater access to special sales and events such as Black Friday; The added feature of a points bank that allows customers to accumulate their points and use them when they choose.
My Best Buy – Elite Plus
The spending requirement to be in the Elite Plus program is a minimum of $3500 in purchases and include even greater benefits like: 25% point bonus on every dollar spent; Free expedited shipping on any order; Returns and exchanges within 45 days; The same features as the Elite program with regards to special sales and events and the point bank feature.
My Best Buy Gamers Club
Video game lovers have 10 ways to save money and earn points. Some of the standout features include: 20% off new video game software for 2 years; 2x the points on new video game software, digital content, and game accessories; 2x the points for every dollar earned for game trade-ins; 10% off pre-owned games.
Regardless of which program a customer chooses, Best Buy encourages the use of their mobile app by offering bonus points when a customer checks in with the Best Buy app and also encourages mobile use by offering special promotions that can only be accessed through the mobile app. Best buy has found a very smart way to incentivize customers to use the mobile app technology while giving customers even more rewards. Best Buy understands that one size does not fit all and has offered multiple ways for a diverse customer population to save. To learn more about the My Best Buy rewards programs you can visit their website.
It appears that rewards programs aren’t just for adults anymore. Barnes & Noble has taken a clever approach to rewarding their customers by appealing to their younger customer segment – kids! They boast “Fun, Free, Rewards & Special Offers.” It’s not just the kids they’re targeting with the Kid’s Club – parents certainly don’t mind saving money while encouraging their children to learn and read more. Here are some of the fun and free rewards the Kid’s Club has to offer:
- Welcome Gift — As a thank you for joining the club, they offer 30% off any one kid’s book or toy
- Loyalty Rewards — $5 reward for every $100 spent on items for kids
* They cap it off at 4 rewards every year of active enrollment
- Birthday Club — Parents receive a coupon for a free cupcake or cookie that can be used the week of the child’s birthday
- Additional Benefits – A monthly email newsletter with additional savings and offers and recommendations for age appropriate products and fun activities for children
Barnes & Noble’s has found a very smart way to incentivize both parents and kids with their Kid’s Club rewards program meanwhile encouraging more reading. Appealing to children is a unique approach to a rewards program and a true win-win for both the customer and the retailer. For more information, visit the Kid’s Club webpage.
Loyalogy, leading provider of loyalty program analysis, data mining, reporting and consulting services to the restaurant industry, announced the results of its latesy U.S. study tracking consumer attitudes and behavior regarding restaurant rewards programs.
“Our latest study provides consistently clear evidence directly from consumers regarding the effectiveness of restaurant rewards programs and the importance of such programs to restaurant guests,” said Dennis Duffy, President of Loyalogy.
The study, based on detailed survey responses to 55 questions among 1,100 consumers from across the U.S., found that:
- Consumers estimate an appealing restaurant rewards programs would increase their visit rate to a particular restaurant by an average of 35%.
- Nearly three-fourths of consumers (73%) report they would recommend a restaurant more to others if that restaurant offered an appealing rewards program.
- 86% of consumers prefer a rewards program with a clearly-defined proposition in which they earn rewards based on spending or visits rather than a program built solely on periodic, surprise free items.
- 43% prefer a program that offers points which convert to rewards which may be spent like cash at the restaurant.
- 43% prefer a program that is based upon visits, such as 8 visits spending a minimum amount each visit would generate a free meal.
- 14% prefer a program that offers surprise free menu items that may be used for a certain period of time with no pre-defined criteria for receiving that free item.
- Consumers desire a simple reward program enrollment process in the restaurant and would prefer to supply additional information online after they have left the restaurant.
- Although consumer wallets are bulging with plastic cards, 60% of respondents stated that they don’t mind carrying a membership card for a rewards program if it’s necessary.
- A single rewards program membership covering multiple restaurant brands has significant appeal to consumers. 75% of respondents agreed they would like to have one rewards program membership that was honored at multiple restaurant chains.
- Consumers participate in an average of 3 restaurant rewards programs.
- Consumers are visiting restaurants an average of 13 times per month.
- The 25 to 34 year-old age segment, which includes the oldest members of the Millennial Generation, demonstrates a more intense use of restaurants and rewards programs. In our study we refer to this group as Millennials with Means because they fall into the Millennial age range and have a household income of $75,000 or more.
- Millennials with Means visit restaurants 40% more (18.5 visits per month versus 13 visits per month for the overall population).
- Millennials with Means participate in more than twice as many restaurant rewards programs (6.5 restaurant rewards programs versus 3 restaurant rewards programs for the overall population).
- Millennials with Means are more responsive to rewards programs. They estimate that an appealing restaurant rewards program will yield a visit increase of 43% versus 35% for the overall population.
- Millennials with Means are much more interested in managing all aspects of their rewards program participation with a smart phone app. A total of 57% of this group expressed a desire to do everything using a smart phone app versus 35% for the overall population.
ABOUT THE LOYALOGY CONSUMER RESEARCH STUDY
The Loyalogy consumer research study was conducted through an online survey of U.S. consumers between the ages of 25 and 65 with household incomes of $75,000 or more. The respondents were selected from an online research panel provided by The Sample Network. The survey consisted of 55 questions in categories that include:
- Restaurant visit rate and spending, including breakdown of those who visit restaurants just for pleasure or both pleasure and business.
- Fast Casual.
- Full-Service Casual.
- Full-Service Fine Dining.
- Visit rates in certain categories such as:
- Coffee shops.
- Traditional delivery/carry out pizza restaurants.
- Gourmet pizza restaurants.
- Take and bake pizza usage from specialty brands and gourmet grocers.
- Gourmet burgers – also referred to as ‘better burgers.’
- Bar and grill.
- Participation rate in restaurant rewards programs.
- Usage of online services (website or mobile app) such as Open Table, Yelp, Urban Spoon and Trip Advisor.
- Usage of online ordering (website or mobile app).
- Relative appeal of 14 different reward program benefits.
- Attitudes about 9 different statements regarding carrying membership cards, using a phone number as identifier and receiving promotional e-mail messages from rewards programs.
- Attitudinal statements regarding the impact of rewards programs on behavior.
- Demographic characteristics.
Loyalogy was founded by Dennis Duffy who has more than twenty years of experience developing, managing and analyzing customer loyalty programs. Loyalogy provides loyalty program data analysis and data mining services, online dashboard and reporting tools, loyalty program development and consulting services and workshops for companies contemplating a customer loyalty program. For more information, visit www.loyalogy.com.
LOYALTY PROGRAM TUNE-UP SERVICE
The Tune-Up service is something we’ve provided for years but there’s been so much demand for it most recently that we’ve announced it for companies who need such a service but may be unaware that it exists. We find that companies who operate a loyalty program for a period of time reach the point after a year or so at which they need an in-depth assessment of how their program is working with comparisons to industry benchmarks and best practices. The result is a comprehensive report and roadmap that clients find incredibly enlightening and helpful.
The eight-step process requires four to six weeks and involves the following:
- Obtain access to program data. Depending upon how long the program has been in existence, we prefer to have at least two years of member and detailed transaction data.
- Discuss management’s perceptions of the program. Pros and cons along with a discussion of your original expectations regarding the program and the current reality of the program’s performance. Categories include but are not limited to:
- Strategic – how does it contribute to your business?
- Tactical/operational – what operational and/or logistical burdens are created by the program on staff?
- Review/discuss past and current methods of communicating the program to guests:
- Social media.
- Any targeted promotions that may have been deployed to members.
- Conduct in-depth data analysis.
- Interim discussion with management. This allows us to get some reality-checks based on what we see in our analysis and have some discussion about the causes and implications of what we see.
- Final analysis and development of recommendations.
- Recommendations regarding the overall structure of the program.
- Recommendations regarding program communications, operations and rules.
- Recommendations regarding specific data-driven tactical promotions that are likely to profitably generate incremental sales.
- Recommended strategy/process for implementing any significant changes to the program. This includes outlining the potential outcomes from such changes and a step-by-step methodology to maximize the success of the change implementation.
- Final presentation of analysis and recommendations.
- Follow-up changes to analysis and recommendations based upon discussion.