Dive Brief:

• To help attract new customers and deepen relationships with existing ones, The Container Store on Thursday launched a new tier-based loyalty program called Organized Insider.
• The loyalty program will offer benefits like receipt-free returns, birthday discounts, exclusive access to products and events, and priority shopping. The program offers three tiers based on consumers' annual spending — enthusiast (spending $0 to $299 annually), experienced ($300 to $999) and expert (over $1,000) — and each features various perks, according to a company press release.
• The home organization retailer also introduced a new mobile app, which allows customers to check loyalty status, see available rewards, shop and get updates from the retailer.

Dive Insight:

With the launch of the tier-based loyalty program and mobile app, The Container Store has made good on promises it made earlier this year.

"We have reimagined our loyalty program to provide our customers even more benefits than before while designing a program that is easy to understand and easy to access," Melissa Collins, The Container Store's chief marketing officer, said in a statement. "The new tier-based model will encourage repeat purchases and attract new customers. Both Organized Insider and our new mobile app are essential elements of our overall customer experience."

The new loyalty program comes just over a month after the home organization company introduced a new logo, a new tagline, "Welcome to The Organization," and a national brand campaign.

In a move seemingly targeting younger customers, The Container Store launched the campaign across TikTok and created its first hashtag challenge on the platform dubbed #ShowUsYourDrawers. The retailer enlisted influencers and partners like Drew Barrymore, The Home Edit, Marie Kondo and Cassandra Aarssen to participate in the challenge.

To further drive growth, the company in January announced it acquired home storage and closet organization company Closet Works for $21.5 million. CEO Satish Malhotra at the time said the acquisition was part of an effort to eventually double the company's sales.

The Container Store, like other retailers selling home goods, benefited at the start of the pandemic when more consumers were stuck at home. However, growth appears to be slowing. In its most recent quarter, the retailer reported consolidated net sales of $267.3 million, a 3% decrease year over year, but a 16.9% increase from 2019. The company's net income fell 30.4% year over year to $13.7 million.