Wayfair debuts new loyalty program and benefits for customers

Wayfair announced the launch of a new customer loyalty program. In doing so, Boston-based Wayfair joins a list of notable retailers with programs that reward their most coveted customers.

The new loyalty program’s benefits will target a range of shoppers, which Jon Blotner, Wayfair’s chief commercial officer, characterized as those “embarking on a remodel or just looking for a new throw pillow or kitchen gadget.” In addition, the benefits will apply across purchases from Wayfair’s full family of brands, which include AllModern, Birch Lane and others.

Wayfair is No. 10 in the Top 1000 Database, Digital Commerce 360’s ranking of North America’s largest online retailers. It is the largest online retailer of Housewares & Home Furnishings in the database.

How the Wayfair Rewards loyalty program will work

Wayfair Rewards is a membership program that costs $29 annually.

According to Wayfair’s announcement, the perks include 5% back in rewards (with some exceptions) on all merchandise across Wayfair and its brand portfolio. Rewards never expire so long as customers maintain their membership, and can be applied towards future purchases.

Blotner, who has been with the company in various leadership roles for eight years, lauded the program as one that will yield “exceptional savings” for customers.

Wayfair opened its first physical location in Illinois earlier this year, but the vast majority of its business remains online. Sales have been flat or lagged slightly behind last year, according to its most recent earnings results. Wayfair said in its Q2 earnings report that total net revenue was $3.1 billion, a decrease of $54 million, down 1.7% year over year. Amid the company’s current turnaround efforts, there is some optimism that it may benefit from a lower interest rate environment in the U.S.

Wayfair Rewards advantages and challenges

“Wayfair’s new loyalty program has a lot of potential, given the company’s strong customer base and focus on affordable, quality home goods,” said Hafez Ramlan, marketing manager at the ecommerce fulfillment platform Atomix Logistics. “By incentivizing repeat purchases, Wayfair can create more ‘sticky’ customer relationships, where shoppers are likely to return for the added perks and benefits.”

Wayfair will hope to drive those repeat purchases with the new list of benefits.

“I do see Wayfair’s new loyalty program being successful, especially since it involves reward offerings that apply to future purchases,” said Katelynn Daniell, co-founder of Precision Retail, an artificial intelligence-powered survey and rewards plugin.

Ramlan added that all rewards programs come with built-in challenges, and Wayfair must steer clear of those to succeed.

“There are a few pitfalls that brands, including Wayfair, should watch out for,” he explained. “The biggest risk is making the program too complex or hard to redeem. If customers find it challenging to earn or use their rewards, they’ll quickly lose interest.”

Ramlan noted that another consideration is ensuring that rewards are genuinely valuable. Offering small discounts or limited perks might not be enough to keep customers engaged in the long term.

“Wayfair’s focus should be on a program that’s easy to use, genuinely rewarding, and offers perks that align with what their target audience values — home and lifestyle inspiration, style tips and ease of upgrading their living spaces,” Ramlan said.

Do you rank in our databases? 

Submit your data and we’ll see where you fit in our next ranking update.

Sign up

Stay on top of the latest developments in the online retail industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.

Favorite