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Dive Brief:
- Wayfair has launched a new membership loyalty program across all of its banners, including Wayfair, AllModern, Birch Lane, Joss & Main and Perigold.
- The program costs $29 per year with rewards that never expire as long as subscriptions do not lapse, according to a company press release.
- Members get 5% back in rewards on all purchases, early access to major sales events and free shipping on orders of any size, among other perks.
Dive Insight:
Loyalty programs can influence customer spending. Most consumers will join a loyalty program before making their first purchase, according to a recent Snappy survey from June. And 75% of customers will spend more money as a member, per the report.
In its own research, Wayfair found that many of their customers were members of multiple loyalty programs with other brands and were often frustrated by slow earn rates and restrictive expirations that took control out of their hands, per a company spokesperson for the brand.
"We designed Wayfair Rewards to deliver extraordinary value to our customers with meaningful perks that can be felt immediately," Wayfair Chief Commercial Officer Jon Blotner said in a statement. "Whether you're embarking on a remodel or just looking for a new throw pillow or kitchen gadget, our diverse catalog combined with our new rewards program ensures members get exceptional savings every time you shop with us."
Wayfair Rewards replaces the retailer’s existing credit card rewards program. A previous loyalty program from Wayfair, MyWay, ended in 2020, per the company.
An array of loyalty programs are on the rise as a way to regularly reward customers for shopping for specific brands. Apparel brand Kith offers members-only merchandise as an incentive to join. J.C. Penney, meanwhile, recently launched a new program that allows members, who join for free, to accrue points and rewards faster than previous programs.
Brands like Ulta Beauty and Foot Locker have sought to refresh and update their programs. The beauty retailer last year announced a relaunch of its loyalty program, including an enhanced birthday offering that allows customers to select a gift from a portfolio of brands across categories. And Foot Locker, as part of its turnaround, introduced an updated loyalty program that allows customers to redeem points for discounts.
As the home category has slowed — most recently declining of 5.3% year over year, according to September retail sales metrics from the U.S. Department of Commerce — Wayfair has ushered in cost-cutting measures. At the start of the year, the company laid off around 1,650 employees, representing about 19% of its corporate team and 13% of its global workforce.
Wayfair has stepped up its strategy of opening brick-and-mortar stores as a way to meet customers where they shop. After experimenting with pop-ups and small-format stores, the company has opened brick-and-mortar locations for its brands, including AllModern, Joss & Main and Wayfair.
via https://www.aiupnow.com
Howard Ruben, Khareem Sudlow
