Wayfair’s loyalty program all about extraordinary value, meaningful perks

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Wayfair’s loyalty program all about extraordinary value, meaningful perks

Wayfair Rewards, a subscription loyalty program costing $29 a year, offers exclusive member-only sales, free shipping and priority customer service featuring a dedicated phone line for members. It’s all part of Wayfair’s brand evolution.

| by Judy Mottl — Editor, RetailCustomerExperience.com & RewardsThatMatter.com

Wayfair has launched a loyalty program called Wayfair Rewards and the program’s goals are many.

It aims to build on customer excitement for promotions, strengthen customer loyalty and deliver on consumer expectations when it comes to a retail experience.

Wayfair Rewards is a subscription loyalty program costing $29 a year and offers exclusive member-only sales, early access to major sales events, including the annual Way Day, free shipping regardless of order size, a birthday offer and priority customer service via a dedicated phone line for members.

It also offers 5% back in rewards on all merchandise across Wayfair and its specialty brands — AllModern, Birch Lane, Joss & Main and Perigold.

In with the new

Wayfair Rewards comes in the wake of the brand’s previous loyalty program called MyWay, which has not been active since 2020.

The brand, headquartered in Boston, Massachusetts, and which generated $11.9 billion in net revenue for the twelve months ending June 30, 2024, is undergoing a brand evolution, according to Wayfair Chief Commercial Officer Jon Blotner.

“Customer loyalty is something we’ve always invested heavily in,” he told RetailCustomerExperience in an email interview. “Over the years, we’ve had different vehicles for encouraging customer loyalty via our apps, credit card product and email. This felt like a pivotal moment to broaden and deepen our loyalty offerings with a structured, tender-neutral rewards program.”

Come January 2025, Blotner will be stepping into a new role of president, commercial and operations. He will oversee these combined functions to reflect an integrated organization model.

He takes on his new leadership role as the brand forges ahead in its evolution. It’s a shift from becoming a “known” brand to becoming a “loved,” brand, said Blotner, who has held various roles at Wayfair since joining the company in 2016. This past May, Wayfair opened its first-ever brick-and-mortar store in Wilmette, Illinois.

“As we up-level our brand marketing to bolster our brand promise, we’re also seeing that customers are motivated by value in an increasingly competitive space. In this context, a membership program allows us to invest in value more strategically, fostering long-term relationships and commitments between us and our customers,” he said.

The decision to go subscription

The number of retailers with a paid/subscription loyalty program is much lower than the number of retailers and brands offering a free loyalty program that typically includes some sort of reward per purchase level, surprises through the year and free shipping above a certain order value.

Many brands looking to launch a loyalty strategy opt for a partner solution but Wayfair Rewards was built by the in-house tech team. The main reason is that the approach lets the brand build on its purpose-built tech stack to help shoppers navigate its extensive catalog.

Wayfair chose to take the subscription approach given it would allow the brand to provide exclusive benefits and high-value rewards tailored to customer needs.

“While other loyalty programs often lack the earn rates, material value and flexibility that customers seek, the $29 annual fee enables greater value and a more personalized experience,” said Blotner, adding the fee allows Wayfair to offer “valuable benefits, including 5% back on all purchases, early access to sales, members-only events, free shipping on all orders and enhanced customer service.”

And just as important, he added, it allows Wayfair’s continual investment in high-impact features that elevate the overall shopping experience for members.

“We believe the program can be a significant value and winning proposition for many of our customers given the average annual home category spend,” he said.

One unique benefit provided by Wayfair’s loyalty program is the inclusion of a dedicated customer service phone line just for subscribed members.

“We know our customers care about convenience as well as value, and the members-only support line is intended to deliver against that promise with guaranteed fast, high-quality service,” said Blotner.

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