Bed, Bath & Beyond is going to institute an fee-based loyalty program. It will eliminate the ubiquitous coupons for which the retailer has become known. Our commentary on this topic was featured in RetailWire.
Loyalty programs, coupons, margin erosion are mine fields that retailers must walk regularly. Trying something new can be as successful as it can be harmful. Sometimes there is no recovery.
As Loyalty Programs go, we don’t favor fee based programs. Membership warehouses, on the other hand, provide an exclusivity (package size and, therefore, lower prices) that justifies the fee. However, if the value proposition can be found in a fee-based loyalty program, it may pass the consumer-acceptance test. Therein lies the risk.
RTG provides CRM and loyalty program consulting services to its retail clients. Please contact us and we would be happy to discuss your needs with you.