Sam’s Club rolled out Cash Rewards, a new loyalty program that provides $10 in Cash Rewards for every $500 spent on qualifying pre-tax purchases. All Sam’s Club Plus members will automatically be enrolled in the program.
The program launched nationally on June 12. Sam’s Club Plus members will automatically be enrolled to start earning up to $500 in Cash Rewards annually, an industry-leading benefit among warehouse clubs.
Tara Raddohl, Director, Corporate Communications for Sam’s Club, participated in an engaging Q&A with Loyalty360 to discuss the new loyalty program.
What factors prompted the launch of Cash Rewards and what are your goals for the program?
We are committed to providing our members exclusive benefits that make their lives better. Our goal is to continue adding value to our memberships by offering services and rewards that differentiate Sam’s Club as a more than a shopping destination. In addition to Cash Rewards, Sam’s Club Plus Membership also offers the following benefits:
Early Shopping Hours: Club doors open at 7 a.m. Monday through Saturday, three hours earlier than regular shopping hours.
Extra Protection Service Plan: Receive an extra year of coverage with the purchase of a Protection or Care Plan (excludes cameras, computers, smartphones and tablets).
Pharmacy Discount: Members can take advantage of 8 percent savings on name-brand prescriptions and the Extra Value Drug List provides up to 40 percent savings on many generics when not using prescription drug coverage. In 2012, Plus members using the discount saved on average $16 per prescription versus the regular Sam’s Club retail price.
Optical Discount: Take $40 off a regular-priced pair of prescription eyeglasses when purchasing a one-year supply of contact lenses not using vision plan/insurance benefits.
Was customer feedback a factor in the launch of this new loyalty program and, if so, in what way?
Yes. We piloted Cash Rewards in 2012 in the Southwest region and decided to launch the program nationally based on the success of that pilot. Member feedback is always received and considered, and we continue to listen to our members to ensure we are providing the value and services they desire.
How do you define loyalty, what does it mean to your organization, and how has it changed over recent years or since you have been on the job? What does Customer Experience/Customer Engagement mean to your company?
As a membership warehouse club, our customers pay a fee to shop with us. For that reason, we are committed to delivering the best in quality, selection, and value to help drive loyalty among our members. Sam’s Club was founded to help small business members, and we continue to do that today through grants to national partners, the Sam’s Club Gallup Microbusiness Survey and services such as Click ‘n’ Pull. We’ve also broadened our assortment to provide a shopping experience that surprises and delights the many families who shop our clubs. Our customer base varies across the country, so we tailor the merchandise available in each club to meet the needs most relevant to the local community.
What are the best opportunities in the next one to two years?
Sam’s Plus members now have two opportunities to get dollars back on their purchases with the new 5-3-1 MasterCard program and exclusive Plus-only Cash Rewards program. Beginning June 12, all Sam’s Plus members were automatically enrolled to receive $10 in Cash Rewards for every $500 spent on qualifying pre-tax Sam’s Club purchases, regardless of payment type. Members can also earn up to $5,000 in cash back through our co-branded MasterCard, which offers 5% cash back on gas, 3% cash back on travel and dining, and 1% on all other purchases.
How do you measure effectiveness? What metrics are used?
Our members will tell us how the programs are working.