DSW announced a new rewards program called VIP, which includes new benefits and a more personalized experience on the retailer's app.
The new program was designed with customer feedback. Shoppers said they wanted to earn points for donating shoes and a faster way to earn rewards.
According to DSW Chief Operating Officer Michele Love, up to 90% of transactions are from the DSW VIP loyalty program members.
"These customers certainly have higher spend but, most importantly, are valuable to us because they’re the most engaged with the DSW brand," she told FierceRetail.
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The new loyalty levels will now include VIP Club, VIP Gold and VIP Elite. When it comes to rewards, VIP Club and Gold members will now earn one point for every $1 spent, while Elite members earn two points for every $1 spent. And all three tiers receive $5 for every 100 points earned.
Another perk is free shipping on any purchase and free in-store returns. VIP Gold members can also return online orders for free and Elite members can receive two-day shopping on anything and online returns for one year.
And as suggested by consumers, members can earn 50 points by donating shoes at any DSW location in the U.S.
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Love said that today's customers want more than just a transaction: they’re looking for an emotional connection with the brand.
"They hunger for one-to-one personalization, services and experiences," he said. "Our DSW VIP program relaunch was based on customer research, and besides wanting faster rewards and free shipping, the number one benefit they asked for was the ability to donate their shoes for points. We love being able to reward our customers for doing good—for others, and for the environment."
Moving forward, DSW is committed to finding new ways to offer benefits to its customers, such as real-time rewards, the ability to donate earned rewards to charity, and the ability for customers to vote on future product.