As we move into the new year, retailers are looking for new ways to incentivize consumers, establishing loyalty practices that will increase engagement and retention. Two retailers, The Home Depot and Chipotle, have recently expanded their own programs in an effort to grow their relationships.
The Home Depot has expanded its Pro Xtra loyalty program. The updates include new membership tiers — Member, Elite, and VIP — with benefits for professional contractors and builders.
"We're always looking for ways to enhance Pro Xtra to best support Pros as their needs grow and evolve, along with their businesses," said Molly Battin, senior vice president and chief marketing officer, in a statement. "This tiered loyalty system unlocks a new experience of rewards and savings for our Pro customers with more benefits than ever, right at their fingertips."
With Pro Xtra, Home Depot pros earn points with every dollar they spend — the more points, the higher the tier they unlock. Through the expanded program, members can access a new Elite Support Line, which provides exclusive, priority business-related assistance, in addition to VIP experiences, account management services, preferred pricing, and personalized purchase support from the brand.
The Home Depot expects to launch even more benefits across these three tiers throughout the year.
The Pro audience provides a unique opportunity to tap into one of the company’s most significant segments, representing a $450 billion marketplace. According to Hector Padilla, executive vice president of outside sales and service for The Home Depot, Pros make up about 10% of the company’s customer base and about half of its sales.
"To serve the Pro, it's about removing friction through a variety of products and capabilities — whether they visit a Home Depot store for a last-minute need on the way to a job or plan a larger purchase in advance to be delivered to the job site,” said Padilla in a statement. “We're focused on serving the Pro no matter where, when and how they choose to shop with The Home Depot."
Chipotle’s Freepotle Rewards
Chipotle is introducing a new benefit for its membership with “Freepotle,” giving those enrolled ten free food drops throughout the year, such as free guacamole, free queso, free beverages, free beverages, or double protein.
Non-members have until March 6 to join in order to be eligible for a free side or topping added to their account. Existing members are automatically enrolled and will be able to get their first free food drop between January 9-15.
In order to incentivize new memberships and retain loyalty, the company has launched two contests. Members will have the chance to win free Chipotle for a year between Jan 9-15. To enter, they’ll need to make a $5 minimum purchase and scan their Chipotle Rewards ID at the register. Those who make eligible digital purchases are automatically entered to win. A total of 3,100 awards will be given out.
Additionally, the company is taking to social media, launching a “Freepotle” Prize Wheel campaign on TikTok and Instagram Live. Consumers are encouraged to tune into these lives and comment “Freepotle” for a chance to win. Chipotle will choose one commenter from each platform at random, spinning a wheel until someone claims free Chipotle for a year.
Chipotle currently has more than 30 million rewards members.
"In an environment full of pricey subscription programs, we're introducing a pass to our real food that is free to join and will provide more value to our community than ever before," said Chris Brandt, Chipotle’s chief marketing officer, in a statement. "'Freepotle' makes Chipotle Rewards a must-join program for all Chipotle fans in 2023."
Starbucks reaffirmed its commitment to its five-step reinvention plan with a renewed focus on building out digital capabilities, deepening loyalty, boosting personalization, and bolstering its supply chain.