Game on: While many retailers offer rewards programs to incentivize customers to return, some are taking it one step further by gamifying the experience to encourage members to spend more.
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Sweetgreen is testing a “Rewards and Challenges” program where customers who perform certain actions—like spending above a certain amount or ordering select items—receive discounts and other benefits.
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Starbucks uses gamification to turn customers into regulars through challenges, members-only competitions, and perks like Double Star Days. That approach has paid significant dividends: Starbucks boasts 27 million active members in the US, who are responsible for 54% of revenues at company-operated US stores, the company said on its latest earnings call.
More perks, please: Still other retailers are adding new features to their subscription services to boost signups and reduce churn.
Ahead of Prime Day, Amazon is offering US Prime members a free one-year Grubhub+ membership, which allows subscribers to order food delivery without paying delivery fees.
- Incorporating restaurant delivery into its already exhaustive list of features allows Amazon to offer enhanced value in comparison to competitors—and causes members to think twice about canceling their subscriptions.
Walmart is incorporating its InHome program—where employees deposit groceries directly into shoppers’ fridges—into its Walmart+ subscription service for an additional fee.
- Making InHome more widely available allows Walmart to meet strong demand for in-home delivery. Our latest US digital grocery benchmark found that consumers consider in-home delivery to be just as valuable as in-store pickup.