In its second-largest acquisition, Amazon buys the company for $970 million.
By adding a catalog and expanding its gifts assortment, Schwan’s web-based customer loyalty program builds more brand awareness across multiple channels and helps the company measure potential new opportunities in the online gifts space.
An online customer loyalty program that Schwan’s Home Service Inc. started almost 18 months ago is proving so popular that the company is expanding it to include a whole new channel: catalogs.
In February 2004, Schwan, No. 54 in the Internet Retailer Top 400 Guide to Retail Web Sites, started a new customer loyalty program and added more SKUs to its online gifts portal as a way of rewarding customers who placed an online order.
For each $1 that customers spend on an online or telephone order they are rewarded with one point, which they can compile and redeem for discounts on more than 500 gift-related SKUs.
The program has proven so popular that about 1 million Schwan customers have signed up for the program, says Glenn Bader, director of e-commerce and emerging channels. With rising popularity, the program will now be included in a new catalog that Schwan will distribute to customers along its delivery routes and on its mailing lists.
By adding a new catalog and expanding its gifts assortment to include several hundred more SKUs, Bader says the customer loyalty program serves a two-fold purpose of building more brand awareness across multiple channels and helping Schwan measure potential new opportunities in the online gifts space.
In an expanded customer loyalty program, the web will play a prominent role. For instance, customers can sign up for the loyalty program at Schwans.com and use tools that track their total number of points and the number of points they’ve redeemed on previous transactions.
Schwan will also promote its customer loyalty program and the advantage of using the web to sign up for rewards points online in its new catalog. The new catalog, Schwan’s expanded gifts assortment and the customer loyalty program will be promoted in series of upcoming e-mail campaigns, Bader says.
The new catalog and the e-mail campaigns will be introduced in September. “We began the customer loyalty program on the web and the results are helping us extend our message across other new channels,” Bader says.