While not expecting a return to true coalition loyalty, retailers with multiple store brands under the same parent company are looking to try a variation on this theme. The now-defunct coalition loyalty program, Plenti, proved the difficulty in getting separate companies to offer a combined loyalty program for their shoppers. Plenti discovered that there were conflicting interests among the mix of retailers that were part of the loyalty program, not the least of which was competing against an individual store’s own rewards program. Restaurant groups have shown that multi-brand loyalty works within the same organization, so there’s no reason why this can’t happen with other retailers that operate different banners as well.
A RetailWire article discusses more on this topic which is excerpted below.
Foot Locker Inc. and Ascena Retail Group are both launching loyalty programs that enable consumers to earn points across retailer banners.
Foot Locker unveiled the planned launch of its FLX program that “flexes with you” at its Investor Meeting in late March. Banners include Foot Locker, Kids Food Locker, Lady Foot Locker, Footaction, Champs and Eastbay.
“We are shifting away from loyalty being by individual banner focusing on discounts and we’re moving to one global program focusing on delivering awesome connected experiences and benefits,” said Jed Berger, Foot Locker’s chief marketing officer, North America, at the event.
The new membership program will run across all banners and “incentive our consumers to earn points across our entire portfolio and then spend those points in a central redemption center.”
FLX will also offer experiential benefits with its points, including early access to sneaker releases, banner gift cards, chances to enter sweepstakes to win prizes such as autographed shoes and donations to causes. Members in the tiered program also earn free shipping and access to events. The program will roll out globally in 2019.
Ascena Retail Group on April 2 launched ALL Rewards, which enables members to earn and redeem perks across its five banners: AnnTaylor, LOFT, Lou & Grey, Ann Taylor Factory and LOFT Outlet. The group likewise called out the flexibility the program will offer customers.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group
