For companies like Costco, Starbucks, and Dicks Sporting Goods, which have robust and well-established loyalty programs, a common thread is that rewards members are the biggest spenders.
"For price-conscious consumers, loyalty programs provide opportunities to spend more comfortably thanks to discounts and deals."
And Dick's has said loyalty members who also use its fast-growing youth sport management software spend twice as much with the retailer than loyalty members who don't.
Beauty store chain Ulta, which already has its Ultamate Rewards program, is testing a complimentary program that includes 42 mini-games, Glossy reported in May.
Of course, effective loyalty programs aren't just about encouraging existing members to spend more, they also depend on getting more casual shoppers to sign up.
Persons:
—, Jennifer King, Laxman Narasimhan, Dick's, Etsy, Harry Lawton, Lawton, aren't
Organizations:
Service, Business, Costco, Starbucks, Dicks Sporting Goods, Tractor Supply, Gold Star, Tractor Supply Company, Neighbor's Club, Target
Locations:
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