Using data to transform customer loyalty
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DSW, a leading omnichannel footwear retailer, has a robust loyalty program with over 26 million members contributing to more than 90% of sales. A recent transformation effort aimed to refresh the program in response to evolving customer needs and competitive trends, resulting in significant growth metrics and innovations. Key areas of focus moving forward include personalization, community engagement, and enhanced digital services.
Using data to transform customer loyalty
- 1. Julie Roy - VP, CRM, Digital & Analytics Brian Seewald - SVP, Customer Experience & Operations DSW Designer Shoe Warehouse 7.22.19 SESSION: Using Data to Transform Customer Loyalty
- 3. DSW + LOYALTY • Leading omni-channel footwear and accessories retailer, DSW is all about the thrill of finding the perfect shoe at the perfect price • Sales of $2.7B with over 500 store locations in the U.S. and Canada • Strong loyalty program dating back over 30 years • 26M+ loyalty members, with 29% members for 10+ years • Represents >90% of sales • Brand mission: WE INSPIRE SELF-EXPRESSION
- 4. THE NEED FOR CHANGE • Proven, but tired loyalty program • Changing retail landscape • Evolving customer needs, preferences and expectations • Desire to refresh the brand • Need to build emotional loyalty
- 5. VISION DEVELOPMENT HUMAN-CENTERED DESIGN - Voice of the Customer Research: Qual, Quant - Identification of Barriers to ‘Shoes as a Habit’ & Pain Points - Macro shifts in consumer needs & preferences RETAIL & COMPETITIVE TRENDS - Buying Behaviors - Role of Physical Retail - Competitive Plays WHO WE ARE - Brand Mission, Values & Promise - Competitive Advantages LOYALTY INNOVATION - Best-Practices in Loyalty - Program Design BUSINESS IMPACT - Economic Modeling - ROI & Long-Term Payoff 1 2 3 4 5
- 7. ITERATIVE PROGRAM DESIGN SPRING 2018 FALL 2018 SPRING 2019 • Faster rewards • Free shipping & returns benefits • 3-tier structure with exclusive benefits • Shoe donation & rewards earning • Digital integration • Cloud-based loyalty engine • Real-time points & rewards • Expanded non- transactional rewards • Rewards donation • MyPerk choice reward • Mobile wallet • Text to enroll
- 11. KEY SUCCESS METRICS • +6% annual sales comp = highest in 7 years • Tri-fecta of AMAZING customer growth: • Significant new customer enrollments • Highest-ever retention & reactivation rates • Average annual member spend increase • 1.6M additional app downloads, growing to 20% of digital traffic • 1M shoes donated in <1 year and heart-warming, emotional stories • Recognized as one of the best, most innovative programs in the industry
- 12. FORWARD FOCUS • Personalization • Community & social • Enhanced digital utility • Experiential rewards • Paid memberships/bundles • Exclusive services • Credit integration • Gamification
- 13. KEY TAKEAWAYS • Focus on the customer • Set a vision & align the organization • Keep it simple • Continuously evolve