Dive Brief:

• In its latest attempt to attract new customers and keep the ones it has, Tractor Supply has revamped its loyalty program, Neighbor’s Club, with new features and incentives for members, according to a press release shared with Retail Dive on Wednesday. 

• Neighbor members will now have receipt-free returns, Preferred Neighbors now have one free same-day delivery and full-day trailer rental per quarter. Meanwhile, Preferred Plus Neighbors now have free everyday standard shipping on eligible orders and two free same-day deliveries and full-day trailer rentals per quarter, according to the press release.

• The company will enroll current members based on their cardholder status and began offering rewards on April 1. Tractor Supply is hosting an online concert with a "top entertainer" in May for its club members to launch the enhanced loyalty program, per the announcement.

Dive Insight:

With over 20 million current members, Tractor Supply said it chose to enhance its loyalty program based on customer feedback it's received. Retailers often use loyalty programs to gain new customers, improve their relationship with existing customers and refine the overall shopping experience. 

"We constantly strive to find new and innovative ways to provide them with the best possible experience. The significant upgrade in our Neighbor's Club loyalty program is just one of the ways we can do that," Christi Korzekwa, Tractor Supply's senior vice president of marketing, said in a statement. "These new features will allow us to continue to grow the program and thank our most loyal customers while welcoming in those who are new to Tractor Supply."

These added benefits are part of Tractor Supply's overall digital strategy. Last year, the company debuted its mobile app and subsequently saw triple-digit e-commerce growth. This year, the retailer introduced a pet prescription service online and on-demand veterinary advice via its mobile app.

Of course, multiple other retailers have been looking to strengthen consumer relationships through their loyalty programs, too. Last year, Madewell, Claire's and Kohl's each unveiled updated loyalty programs with incentives ranging from cashback and special sales to exclusive member events and limited-edition items. During the ongoing COVID-19 pandemic, loyalty programs have played a role in driving consumer engagement amid an unstable period for both shoppers and retailers.