Sears Canada Inc. announced it is updating and modernizing its customer loyalty program, Sears Club, which will bring it more firmly into the digital age. The enhanced Sears Club loyalty program, set to launch before the Holiday shopping season, will offer improvements to the customer experience. Members will now earn valuable Sears Club points on purchases made in cash as well as with any debit or credit card accepted by Sears Canada. Customers can earn points on purchases made in store, through the Catalogue, online at www.sears.ca, or on mobile devices.
New Loyalty Program is Payment Agnostic
Under the new multi-tender loyalty program, Sears Canada will:
- Provide existing Sears Club customers with a new Sears Club membership card, independent of any credit card
- Deliver to customers the new Sears Club membership card and program kit in time for the Holiday shopping season
- Transfer all existing Sears Club points to a new Sears Club membership card in the customer’s name
- Maintain the value of all existing points
- Feature enhanced bonus points programs and even more brands for which to redeem points
- Offer customers the option of redeeming any Sears Club points earned, including those transferred from the previous Sears Club loyalty program card, towards any purchases made at Sears Canada, whether in cash or with any debit or credit card accepted by Sears Canada.
All of this will happen without the Sears Canada customer having to do anything at all other than continuing to shop at Sears Canada using their new Sears Club membership card.
As part of the modernization and ongoing improvement to Sears Canada products and services, the company is also in the process of updating the look and feel of its Sears Club brand identity elements. Sears Canada is excited to share more information on these initiatives in the near future.
For Sears Canada’s retail business, the enhanced Sears Club loyalty program allows the Company to better control its own promotional strategies and provides more flexibility for future program innovations. The conclusion of the existing relationship between Sears Canada and JPMorgan Chase will also result in Sears Canada receiving up to CAD $174 million if a sale of the Sears Card and Sears MasterCard credit card portfolio occurs. Such payment would further strengthen our balance sheet, thereby enhancing our ability to compete and win the business of Canadian shoppers. There is no assurance that such a transaction will be achieved or that the necessary conditions for the payment will occur.
More Customer Data and Greater Understanding
Credit loyalty programs only reward a subset of customers that are willing to apply for a credit card. As a result, they don’t recognize and reward the other 60% to 70% of customers that are buying with cash, check or third party credit cards. This new program enables Sears Canada to collect information on the customer’s purchase behavior regardless of channel and method of payment. With a holistic view of the customer relationship, Sears Canada can identify their “best” customers and reward them for their loyalty. Plus they are able to understand a great deal more about what their customers are purchasing, how often they buy and their total purchases, which enables them to make their marketing efforts much more relevant.
Customers Earn Rewards For Any Method of Payment
“We are excited to launch the enhanced Sears Club loyalty program which allows customers to earn and redeem points on purchases using their preferred method of payment,” said Brandon G. Stranzl, Executive Chairman, Sears Canada Inc. “Existing Sears Club members can be assured their points will be transferred to the enhanced program at the conclusion of the agreement between Sears Canada and JPMorgan Chase. Our customers already have a meaningful direct one-on-one relationship with us, and this relationship will be further enriched through the launch of the improved Sears Club loyalty program, in combination with future credit card or similar financial products. These program enhancements provide us an opportunity to reach out and speak directly with millions of our customers, and to increase the number of recurring touchpoints between us and our customers so we can provide them with an outstanding retail experience that helps them outfit their lives with brands they love.”
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Filed under: Brand Loyalty