Dive Brief:
- Joining other retailers developing or enhancing their loyalty programs, off-price retailer Saks Off 5th on Wednesday launched a rewards program called Off 5th Rewards, according to an email sent to Retail Dive.
- Based on shoppers’ annual spending, the loyalty program has three tiers: "Star" for customers who spend up to $299, "Icon" for customers who spend between $300 and $1,499 and "OFFicial" for customers who spend more than $1,500. Depending on the tier, customers can receive incentives ranging from points on dollars they spend, birthday rewards and members-only sales events, the company said.
- The decision to launch the loyalty program came after the retailer conducted customer research. Shoppers can now access the program online, via the retailer’s mobile app or at any brick-and-mortar storefront.
Dive Insight:
With Off 5th Rewards, the off-price retailer aims to incentivize customers to earn rewards easily and achieve higher statuses within a program, the company said.
“Off 5th Rewards was created to provide additional value to our loyal customers in a simple yet impactful way,” Sara Griffin, senior vice president of marketing at Saks Off 5th, said in a statement. “Nearly 90% of Saks Off 5th customers shared with us that they would be interested in participating in a tender-neutral program. We’re excited to launch Off 5th Rewards as a direct result of this customer feedback and continue to enhance our personalized shopping experience.”
Other retailers have also turned their attention to loyalty programs. In July 2021, Gap Inc. introduced a four-tier loyalty program encompassing all of its subsidiary brands: Athleta, Banana Republic, Gap and Old Navy. Nike began offering its loyalty incentives for Dick’s Sporting Goods customers within the Dick’s mobile app in November. In March, The Container Store debuted its multi-tier loyalty program and announced plans to release its mobile app in the spring.
The launch of the Off 5th Rewards program follows the separation of Saks Off 5th’s e-commerce operations last year. In June 2021, HBC spun off the physical Saks Off 5th stores from its digital arm after receiving $200 million from Insight Partners and other investors. HBC has been making similar moves with its other portfolio retailers. In March, the retailer also changed its logo and released an ad campaign titled “Where Fashion Takes Off.”
