DISCUSSION
Is Tractor Supply barking up the right tree with its new Neighbor’s Club rewards?
Written by George Anderson
Photo: Tractor Supply Co.
Tractor Supply is making changes to its Neighbor’s Club rewards program, putting greater emphasis on building closer relationships with the pet parents who shop in its stores.
The retailer last week said that customers of its standalone Petsense concept will now be eligible to join its Neighbor’s Club program and earn rewards in those stores and at Tractor Supply locations. The company is renaming its pet business Petsense by Tractor Supply to make clear the shared heritage of the two chains.
“Neighbor’s Club has been a true differentiator for Tractor Supply as we’ve seen strong growth in membership enrollment, increased spending levels and industry-leading retention levels with our high-value customers,” said Hal Lawton, president and CEO of Tractor Supply, in a statement. “Finding new ways to provide additional value through the expansion of Neighbor’s Club to pet parents at Petsense by Tractor Supply is a natural fit given the complementary nature of the brands.”
Tractor Supply’s Neighbor’s Club rewards program has been cited by Mr. Lawton as a key to the retailer’s success in recent years. The program’s 26 million and counting members represent about 60 percent of Tractor Supply’s sales.
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Neighbor’s Club was updated last year with a three-tier rewards structure that enables members who spend less than $1,000 annually with Tractor Supply to earn a point for every dollar they spend. Those who spend between $1,000 and less than $2,000 move up to Preferred Neighbor status and earn two points. Customers who spend two grand or more become a Preferred Plus Neighbor and can earn up to five points if they use the retailer’s TSC Personal Credit Card. Preferred Plus members have access to perks like free shipping on online orders, access to one same-day free delivery a quarter and a free quarterly trailer rental.
Petsense customers who become Neighbor’s Club members will be able to take advantage of perks that allow them to get a free pet wash when they buy three and a free pet grooming session after they purchase seven.
Tractor Supply is remodeling its Petsense locations with new external signage and internal décor, described by the company as offering “a friendlier, more modern and welcoming experience.” The Petsense by Tractor Supply store in Murfreesboro, TN, is the first location to sport the new look. The remaining 177 stores in the chain will get a makeover by year’s end.