Dive Brief:
- Sneaker retailer Snipes U.S. launched its first loyalty program, Snipes Reserve, the company announced Wednesday. The program combines cashback options, experiential rewards and a digital wallet.
- Members earn 3% back on all eligible purchases and a 5% bonus on any funds added to the digital wallet. The funds can be used for any purchase in-store or online.
- Snipes Reserve members also receive exclusive access to product launches, early access to exclusive collections, and priority invitations to VIP events hosted by Snipes Chief Creative Officer DJ Khaled.
Dive Insight:
Snipes Reserve aims to match the way Snipes’ customers shop, putting an emphasis on omnichannel options and sneaker culture over a more traditional points-based approach, according to Kelley Walton, CMO of Snipes U.S.
The program was designed with Gen Z — digital natives who value speed, authenticity and a seamless experience — in mind, according to Walton. A loyalty program with direct cash back for purchases appeals to these shoppers, as opposed to a points-based approach that can obfuscate the connection between spending and rewards.
“We know that consumers, particularly Gen Z consumers, are fatigued on advertising, but they are willing to engage with brands when they feel like there is a value exchange,” Walton told CX Dive. “They're willing to share their information, and so [we] make sure that the value exchange is clear.”
The digital wallet element of Snipes Reserve has benefits for both members and the company, according to Walton. The ability to save for an upcoming shoe drop while earning extra funds toward the purchase is something Snipes’ customers can appreciate.
“If you're thinking, ‘Oh, wow, I know that new sneaker is coming out in a month, and I want to put a little bit away every few weeks until it releases,’” Walton said. “That's the financial flexibility that they want.”
The additional money customers earn by saving up for and making the purchase builds their relationship with Snipes, which is exactly what a loyalty program should do, according to Walton.
Brands can benefit by combining loyalty programs and digital wallets together in an app, according to Brad Jashinsky, director analyst at Gartner. But clear communication is necessary to support this approach. If the number of features overwhelms customers, they can actually be less likely to join.
“App features must be introduced in a digestible way for consumers to understand,” Jashinsky said in an email. “Brands can utilize channels such as advertising, app notifications, email, [and] in-store signage, and in-app tutorials can help introduce and remind customers of app functionality.”
Walton acknowledges that Snipes Reserve is a program with multiple moving parts, but the retailer is communicating each aspect separately to help keep it simple for customers. The options for earning, spending and accessing experiences are treated as their own buckets in Snipe’s messaging.
