Loyalty360 Reads: Petco Revamps Loyalty Program After Losing Millions, DSW is Offering a More Flexible Rewards Experience, and How Chewy Uses Loyalty and AI to Thrive in a Market Downturn
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Key takeaways: 

  • Petco’s experience shows how removing friction from a loyalty program can quickly boost customer participation—but it also highlights the importance of balancing attractive rewards with sustainable economics as engagement grows. 

  • DSW is shifting its VIP program toward greater flexibility and tiered benefits, using more personalized perks and member-only experiences to encourage engagement and reward its most loyal shoppers. 

  • Chewy is evolving from an online pet retailer into a broader pet-care ecosystem, using loyalty, healthcare services and AI to deepen customer relationships and support growth even without a significant rebound in the overall pet market. 

Petco Adjusts Loyalty Strategy After Perks Redemptions Surge 

Petco is fine-tuning its revamped loyalty program after customers embraced its rewards faster than anticipated, as CX Dive reports. The relaunch of Petco Perks made earning and redeeming points easier, but stronger-than-expected redemption activity put pressure on second-quarter sales. Petco has since introduced measures to better manage redemptions while shifting its focus toward more personalized rewards and offers. Despite the early financial impact, the retailer views Petco Perks as an important long-term growth driver and expects its personalization efforts to begin benefiting the business in 2027, according to CX Dive. 

Learn more here.

DSW Refreshes VIP Loyalty Program with More Choice and Member Perks 

DSW is giving its loyalty program another makeover, introducing a more flexible rewards experience designed to put members in greater control of their benefits, as Footwear News reports. The refreshed VIP program lets shoppers decide when to redeem their points rather than automatically issuing rewards and introduces three membership tiers—Club, Gold, and Elite—with benefits that increase based on annual spending. Members can access perks ranging from points on purchases and free shipping to birthday rewards, exclusive promotions, and surprise offers. The changes reflect DSW’s broader effort to make loyalty more personalized, convenient, and rewarding across digital and in-store shopping. 

Learn more here.

Chewy Leans into Loyalty, Pet Healthcare, and AI to Drive Growth 

Chewy is finding new ways to grow even as the broader pet market remains challenging, with its strategy increasingly centered on building deeper, longer-lasting customer relationships, as Retail TouchPoints reports. Alongside continued growth in active customers and sales, the retailer is strengthening its recurring-revenue model through Autoship and expanding the role of its Chewy+ membership program, whose members are showing stronger engagement across orders, categories, and the company’s app. Chewy is also broadening its pet healthcare ecosystem through veterinary services and other specialty offerings while deploying AI to improve customer service and operational efficiency. Together, these investments are helping Chewy create more reasons for pet owners to interact with the brand beyond traditional pet product purchases, according to Retal TouchPoints. 

Learn more here.

 

 

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