Hudson’s Bay hopes to pique customer interest with a revamped loyalty program that includes a new app and personalized offers.
The department store chain, headquartered in Toronto, explained on Tuesday that the changes to its rewards offering are intended to refresh the program to better meet current shopping habits. “Hudson’s Bay was one of the first companies to offer a loyalty program in Canada, and since then consumer habits, prioritization of purchases and expectations for these types of programs have continued to change. said Kevin Parry, vice-president of credit and loyalty at Hudson’s Bay, in a press release.
The company wanted to improve its rewards program, he added. This program comes in a context of high and persistent inflation, which increasingly encourages consumers to seek bargains.
The rewards program will be built around three levels that customers can climb, earning more points and faster with each step.
Shoppers start with the Rewards tier, which gives them one point for every dollar spent in-store or online at Hudson’s Bay and Zellers, as well as using their Hudson’s Bay Mastercard. When they’ve spent $400 in a year, they upgrade to the Rewards Plus tier, which gives them 1.5 points for every dollar spent. The last level, VIP Rewards, is accessible from $1,200 of purchases in the year and offers two points for each dollar spent.
Points can be redeemed from 1000 points, which qualifies for a $5 discount which can be applied to taxes, shipping costs or the price of the item itself.
In addition to purchases, customers can earn points through personalized in-app offers based on individual preferences, shopping habits, and “missions” completed by the user. A mission might ask a buyer, for example, to create a head-to-toe ensemble from a Hudson’s Bay item. There will also be bonus events where shoppers can earn double or extra points by shopping on certain days or redeeming fewer points for a higher discount.
Tandy Thomas, a professor at Queen’s University in Kingston, Ont., calls the increasing levels of rewards and missions of the new loyalty program a “great idea” as consumers are “incredibly price sensitive right now”. . Both of these bring fun to the brand, which she says is much needed.
“It’s a very fixed brand. Consumer perception has not changed much throughout their lifetime,” she analyzed. “If you need a new set of dishes, this might be where you go. If you want a quirky new dinnerware set, this isn’t where you go. So anything they can do to show that their brand and their offerings are more engaging and exciting…will be good for them. »
A way to boost sales
Overhauls of rewards programs such as this are becoming more common as banks and retailers increasingly look for ways to boost sales and membership bases to weather the current economic turmoil. Data on when and how people spend is also valuable for businesses.
Cineplex, Scotiabank and Empire revamped the Scene program last year, and BMO Financial Group bought Air Miles in Canada last June. At the beginning of August, the Royal Bank of Canada extended its Avion program to all Canadians, regardless of banking institution, and, to attract registrations, offered members an exclusive bundle of tickets for upcoming concerts. of Taylor Swift in Toronto.
The revamp of Hudson’s Bay’s loyalty program comes as the company works on several initiatives to streamline its operations and build excitement around its offerings. In recent years, it has introduced a new collection of Forever 21, added boutiques for outdoor retailer MEC in select stores and partnered with baby gear startup Rebelstork for a resale program brand.
Arguably the most publicized change came in March, when discount chain Zellers was relaunched, 10 years after most of its stores closed. The return of Zellers has taken the form of pop-up shops in Hudson’s Bay stores, which sell a mix of housewares and other private label products and rival some products you can find at Ikea. and Walmart.
However, the company also laid off around 250 employees in January and another 250 in May. The job cuts are intended to help the company cope with “significant outside pressures”, the company said in January.
