Dive Brief:
- At Home rolled out on Tuesday Design Rewards, its revamped loyalty program. Design Rewards is an update of its Insider Perks program and executives credit customer insight with helping give it shape.
- Customer input influenced the development of at least one perk — members are provided a $10 coupon for every 1,000 points earned. In addition, baseline members earn four points per dollar spent, and VIP customers who spend at least $350 every 12 months earn five points per dollar.
- At Home will continue to work with customers to update Design Rewards over time, David Coulson, head of loyalty and CRM at At Home, said in an email. “Rather than treating customer research as something that ended when the program launched, we want to create an ongoing listening relationship with our members.”
Dive Insight:
At Home executives felt that both customer expectations and the broader loyalty landscape had evolved past its Insider Perks program, so the new program’s customer focus is designed to help it keep up with the pace of change.
The retailer combined multiple forms of research to develop Design Rewards, according to Coulson. The retailer worked with loyalty and CX partners to conduct research about both customers and existing loyalty members to understand how shoppers used the then-current program.
“That included customer research and focus groups, CRM and behavioral testing to understand engagement and offer responsiveness, and a conjoint study that allowed us to evaluate which benefits customers valued most and the trade-offs they were willing to make,” Coulson told CX Dive.
At Home’s investigation encompassed the broader loyalty landscape as well, according to Coulson. The retailer looked at programs within and outside of the home retail industry to better understand where its loyalty program was succeeding and where customer expectations had changed.
“Together, those inputs helped us identify some consistent themes: Customers wanted value that was easier to understand and provided a greater recognition for their loyalty,” Coulson said. “Those insights became foundational to the design of Design Rewards.”
Moving forward, At Home will develop an ongoing customer community and panel to help it gather regular feedback, according to Coulson. The company is taking inspiration from consumer communities to build its loyalty platform where customers can share ideas and experiences.
“Over time, those insights will help inform how Design Rewards evolves, from benefits and experiences to communications, personalization and new ways for members to engage,” Coulson said. “The goal is to make the customer voice a continuous input into the program rather than something we only revisit periodically.”
Tapping into customer communities may be the key to loyalty success. As loyalty becomes more crowded and uniform, experts say brands that understand their customers on a deeper level than basic purchase behavior will be the ones that stand out.
