Dive Brief:
- Fanatics launched an enterprisewide loyalty program called Fanatics ONE, the company announced Tuesday. Fanatics, a digital sports platform, sells branded apparel, hosts events, offers a sports betting platform and more.
- Members can join for free and earn FanCash through purchases made via Fanatics.com and the Fanatics app as well as through activity on Fanatics Sportsbook & Casino. FanCash can be redeemed for rewards including apparel, collectibles, casino credits and events.
- Eligible customers with a preexisting Fanatics account will be automatically enrolled in the program, with the initial migration completed earlier this summer. Fanatics has made its loyalty program available to all U.S. customers and plans to expand it globally.
Dive Insight:
Differentiation is a key ingredient in a successful loyalty program, and Fanatics is looking to stand out through its broad slate of offerings. Unique rewards include VIP events at its flagship stores, experiences with athletes and private after-hours shopping opportunities.
“As Fanatics has grown as a sports platform, we’ve been methodically building a loyalty program that rightfully rewards fans for their passion across our full suite of experiences,” Tucker Kain, chief strategy and growth officer at Fanatics, said in a prepared statement.
Fanatics ONE members can rise through five tiers as they earn points. All tiers get access to free shipping and exclusive product drops, while higher tier benefits include personalized celebrity memorabilia and discounted hotel stays.
The exclusivity of benefits increases with tier. Fanatics ONE’s highest tier, ONEblack, requires a special invitation, and offers benefits including access to Fanatic’s Super Bowl party.
Members of all tiers except the first receive a potentially controversial perk: They are put at the front of the line when they contact customer service. Customers want exclusive treatment from their loyalty programs, but poor execution of tiered customer service can backfire, experts say.
Some industries, like airlines and hospitality, have successfully tied premium customer support to loyalty program status for decades, according to Mike Brinker, customer service leader at Deloitte Digital. However, if customer service perks for loyal shoppers come at the expense of the experience for new or less frequent customers, the business can suffer.
