Fun, Creative, Smart. Here’s What Defines Retail Loyalty In 2023

The United States may have as many as one million reward programs at retail. It is possible for one program to be the best in 2023.

Without stepping through every one of these programs, it’s clear year in and year out that some loyalty initiatives do stand apart for their perks, technologies and customer understanding. We are all familiar with many of these programs because they are so large: Starbucks
SBUX
Amazon
AMZN
Prime, CVS. I’d wager the majority of U.S. households is enrolled in one of these programs.

But there’s also a class of programs that should be recognized for their innovation in the face of these giants, as well as those that just nail it in one category. In the spirit of healthy competition, here’s a short list of some of the programs that stood out across various categories.

The Programs To Watch In 2023 … In 6 Categories

1. The program to watch for being fun – Blumtopia Blume You can’t go wrong with any reward program that has a website. It will treat members to sounds like ocean waves and rooster calls, as well as the encouraging sound of your points adding up. Blume, a brand for feminine youth that focuses on sustainable skin and period care products. The focus is on health rather than image. Blumtopia’s earnings options also delight – members collect “Blume Bucks” just by signing up, then earn more by following Blumtopia’s social platforms, by leaving reviews and (of course) buying products. Members can redeem their BBs for “divine” prizes, such as Blume apparel, beauty products and gift cards, all displayed on Grecian pedestals on the website.
2. Watch this program for well-dressed women – Hugo Boss Experience. It is easy to use and easy on the eyes. The website features modular design and is streamlined. It has earthy photos of gorgeous people dressed in smart, crisp outfits. Hugo Boss doesn’t overdress for any occasion. HB Experience doesn’t issue points nor follow the usual earn-and burn rewards scheme. Instead, it promises exclusive member experiences as well as early access to its products. Members are not rewarded with points. Instead, they receive birthday gifts, such as product discounts, and other perks that will never go out-of-fashion, like expert fashion advice or personal shopping services.
3. The program to watch for creativity – Levi’s RedTab. The historic maker of denim clothing gets what matters to its customers, and that’s jeans that reflect who they are, down to the fit and literal design. RedTab members enjoy two free alterations per annum, discounted embroidery and direct to-garment printing. Further, the RedTab program offers “exclusive member moments,” such as a free back-patch swap on Valentine’s Day so members can customize jeans instead of V-day cards. Members also earned app access to Levi’s collaborations, such as with the vintage brand Bentgablenits, in which Levi’s apparel were used as canvases for Bentgablenits’ signature flower embellishments.
4. The program to watch for being easy-going – Chipotle Rewards. The setup of this fast-casual chain’s reward program is as straightforward as the ingredients on its menu: spend $1, earn 10 points, redeem. The rewards app allows members to earn points online, in restaurants and in their home. If they participate in the programs “Extras” gamification feature, they earn double points for participating in personalized challenges and receive achievement badges. Because it provides Chipotle with real-time, detailed customer information, this activity can translate into further understanding. Members can cash in points for free food, Chipotle-branded products (love the “chips” and “guac” sandals), or donate them to a partner cause, such as the National Young Farmers Coalition.
5. The program to watch for its generous spirit – REI Co-op. REI is a fee-based organization that has succeeded in making its members feel special. For a $30 one-time registration fee, every customer becomes an automatic lifetime member of the co-op and, in 2022, receives a $30 bonus gift card. All orders are shipped free to members, plus they get bonus cards mailed straight and discounted prices on products rentals, bicycle repair, and outdoor adventures. Eligible purchases are eligible for a 10% bonus. REI Co-op members can become donors by joining. REI Cooperative Action Fund donates $5 per lifetime membership. This fund supports outdoor culture, well-being, and the environment.
6. The program to watch for its smarts – Club Publix. Yeah, Amazon may seem like the obvious choice, with its 200 million Prime members and Amazon Web Service, but we’re giving the nod to Publix for the tailored bundle of digital shopping tools in its rewards initiative. These sharply focused app-based technologies, including payment scanning, product replenishment and e-receipts, generate the kinds of customer data that make operational sense to the chain – and therefore, to its customers. Club Publix members are entitled to customized perks, offers, and notices about new products and deals. Even enrollment is smart: shoppers merely have to text the word “JOIN” to 782549. Publix saw a 10.7% increase in sales during the first three quarters 2022 thanks to its membership base.

This is the Program That Most Likely to Succeed

In 2023, any program which can successfully combine all of the above characteristics will be successful. However, different programs will have different levels of success. It is crucial to define the goals early in order to achieve these goals. Recognize program leaders who spend the time to identify what they are trying to accomplish and how to do it.

This is by no means a comprehensive list. These honors would be passed on to many shoppers and loyalty agents. But that’s the nature of loyalty initiatives – they represent different opportunities and benefits to different consumers. It is essential that the programs they create are able to understand their customers at each step.