Loyalty programs are experiencing an evolution in retail, as customers are looking for ways to engage with their favorite brands in more meaningful ways. While the traditional store card model might be outdated, there is still a place for credit card-based loyalty programs – something Famous Footwear is embracing with its new Famously You Rewards Credit Card.
Exclusively available to the 22 million members of the brand’s existing Famously You Rewards program, the new credit card feature has been launched in partnership with data-driven solutions provider Alliance Data. The card will integrate with Famous Footwear’s established loyalty program and cardholders will be able to use it both in-store, at any of the brand’s 900+ locations, or online through its e-commerce site.
“Cardmembers are typically a brand’s most loyal customers, spending two to three times more than non-cardmembers,” said Val Greer, Chief Commercial Officer at Alliance Data Card Services. “When retailers add a branded credit program or digital payment solution on top of their existing loyalty program, they can establish an even deeper connection with consumers.”
Through Alliance Data’s Card Services solution and Enhanced Digital Suite, Famous Footwear will be able to support members through their purchasing journey, with accelerated rewards and real-time financing insights. New customers will be shown how registering for the card will directly impact their spending through onsite messaging; they can quickly apply for the Famously You Rewards Credit Card at checkout.
For Famous Footwear, partnering with Alliance Data to expand the loyalty offering also enables the brand to collect greater consumer insights. As consumers shop and pay for items with their card, this information can be analyzed and used to inform future promotions. Particularly with shoppers increasingly opting to purchase online, the ability to save a store credit card to their digital wallet can make the checkout process even easier and encourage greater engagement.
“Famous Footwear is focused on building customer relationships and making shoe shopping easy and convenient, and partnering with Alliance Data furthers our ability to do that for our loyal customers,” said Mike Edwards, president of Famous Footwear. “The new benefits added for cardmembers are fully integrated with our existing Rewards program developed from customer research.”
This announcement comes as shoppers are reportedly less loyal than ever, open to trying new brands that will provide a superior retail experience. While this raises the risk of customer churn, it also opens up the opportunity to acquire new customers and build relationships through compelling offers and personalization.
Transparency into purchasing costs – and the ability to save money when making these purchases – can go a long way in improving the shopper’s experience with a brand. Following the pandemic’s financial disruption, the checkout has become a critical focal point of the e-commerce journey and could be what makes or breaks a sale.
“Customers value convenience and choice at checkout, and providing flexible payment options engenders loyalty and drives incremental spend,” said Greer. “As retail and apparel customers increasingly shift to digital channels for their shopping, our Enhanced Digital Suite, which is easily integrated on to a brand partner’s website, gives shoppers more visibility into their purchasing power.”