Will Zappos reap rewards from its new loyalty program?
Zappos’ first-ever loyalty program is a four-tier, progressive benefits platform that offers rewards for writing a review and logging onto Zappos.com across devices.
The program offers three ways to earn points:
- 10 points for every dollar spent on a purchase;
- 50 points for logging onto Zappos.com on any device (limited to one login per day);
- 100 points for writing a review.
Customers may redeem every 1,000 points into $1 in Rewards Codes, which can be applied toward future purchases on Zappos.com.
The bigger incentive for customers may be accumulating points to gain access to the non-monetary benefits available in higher tiers of the program.
There are four tiers in the program: Silver, Gold, Platinum, and an invite-only Elite tier. Across all tier levels, members gain free, expedited shipping as well as a dedicated Zappos rewards line. With the program, Zappos claims to be the only retailer offering free two-business day and free one-business day shipping on all orders with no membership fees or minimum order values.
Special perks for members in higher tiers include first access to exclusive products and sales; opportunities to suggest your own Zappos Rewards and test new features; free UPS pickups for returns; and free returns beyond its 365-day return policy.
“As we designed the Zappos Rewards program, our goal was to take our customer service to the next level,” said Arun Rajan, COO of Zappos.com. “We leaned on one of our company purposes — ‘To Live and Deliver WOW’ — and we trust this program will truly wow our customers.”
DISCUSSION QUESTIONS: What do you think of the Zappos Rewards program — how points are rewarded, the varied perks and the tier levels? How do you think the program will affect the relationship between Zappos and its customers?