Exclusive: Michaels streamlines, expands loyalty program
A leading North American specialty arts & crafts retailer is making a major update to its consumer loyalty offering.
The Michaels Companies Inc. recently made a number of significant updates to its loyalty offering, the Michaels Rewards Program, with the aim of simplifying the program while maximizing its value for its most loyal customers. Chain Store Age recently spoke with Sachin Shroff, VP of CRM, loyalty and marketing tech for the Michaels Companies, about how the retailer is giving its customers more ways to earn through new everyday rewards, as well as more personalized offers on the supplies and products that are most relevant to them.
What prompted Michaels to update its loyalty program?
The biggest factor in this update was customer feedback. We are always listening and engaging with our customers to better understand their needs and how we can keep improving to give them even more reasons to ‘make it with Michaels.’
Our customers told us there was room to improve our rewards program, and in response, we simplified the program and added value through everyday rewards on all purchases and by increasing the frequency and relevance of personalized bonus offers.
We are also highly aware that everyone is feeling the effects of the current inflationary environment, so in May we sent $5 vouchers to all existing U.S.-based rewards members to show our appreciation for their continued creativity.
What are the most significant changes to your loyalty program?
Now, all U.S.-based rewards members will earn 3% back in rewards on every single purchase, every day. After spending $300 or more in a year, our most loyal members will earn 6% back on every purchase. We evaluate rewards members’ eligibility each month, and once the 6% is triggered, it remains active for a full year.
In additionally, rewards members will benefit from even more relevant personalized bonus offers, giving them extra rewards on the supplies and products they use most.
How have customers responded so far?
We’ve been pleased with the response to date. In May, we saw millions of U.S. customers redeem their rewards vouchers, and have been hearing positive feedback from our customers who are excited by the ability to earn on every purchase rather than planning their carts around coupons.
Can you share any future plans for your loyalty program?
We’ll continue iterating and improving on the program to deliver the best possible experience for our customers. We are also looking forward to bringing these updates to our Canadian customers in the near future.
Michaels pursues omnichannel innovation
Michaels’ revamping of its loyalty program is the latest in a number of omnichannel transformation efforts it has launched in the past 18 months. These include the launch of a retail media advertising network, as well as buy online pick-up in-store (BOPIS), curbside delivery, same-day delivery, and Buy Now Pay Later (BNPL) options.
Based in Irving, Texas, The Michaels Companies operates more than 1,200 stores in 49 states and Canada.