Dive Brief:
- Foot Locker updated its FLX Rewards rewards program, which now offers a simplified structure and new benefits, the company announced Tuesday. Tyler Saxey, senior director of OMNI global VOC and care solutions at Foot Locker, told CX Dive the program was the result of careful customer listening.
- The retailer will launch a revamped mobile app later this year with upgraded search capabilities, the ability to sign in with biometric authentication and a simplified dashboard for customers checking their loyalty status.
- In early 2025, Foot Locker said it will add a "Store Mode" to the app, allowing in-store shoppers to scan products to check in-store availability.
Dive Insight:
Foot Locker is updating its loyalty app as part of a broader CX push under its Lace Up plan. Its easy-to-understand redemption points, updated search options and emphasis on savings reflect trends across other recently updated loyalty programs.
Albertsons’ new program lets shoppers automatically apply discounts when they reach the minimum point threshold, while Krispy Kreme swapped its punch card style rewards system that tracked purchases of specific items to a general points per dollar spent format.
Simplicity is key for successful loyalty programs, according to Bobby Stephens, principal in Deloitte Digital’s retail and consumer products practice. Easy-to-understand financial benefits make an app attractive while shoring up the overall customer experience.
Better search capabilities can contribute to ease of use as well, and Foot Locker isn’t the only retailer enhancing its options. Walmart added generative AI-powered search to its app in January and is currently testing an AI shopping assistant that can further refine search queries.
Results from a pilot in Canada, which launched last year, are positive, the company said. The program saw higher average order values and more in-store trips from loyalty members, among other benefits.
Foot Locker has high hopes for the program’s future. The company aims to make half of its customers loyalty members by 2026, according to the FLX Rewards announcement.
