How Can Home Goods Stores Improve their Loyalty Strategy?

4 minute read

Loyalty programs are transforming the home goods industry. This article explores future loyalty trends for home goods retailers and the benefits of implementing a home goods loyalty strategy.

Loyalty is essential for growing your home goods business

Boosting your bottom line is just one of the benefits of a home goods loyalty program. Let’s look at some other key benefits.

1. Truly knowing your customer

Loyalty programs allow you to build 360-degree customer profiles using zero- and first-party loyalty data. This data helps you know who your customer is, what they purchase, why and how often. In fact, 71% of consumers expect companies to personalize interactions, and 76% get frustrated when this doesn’t happen (McKinsey & Company).

By using unique data collected with consent from your loyalty program, you can provide personalized offers and promotions to your customers based on their shopping history, preferences and behaviors. Annex Cloud’s SaaS-based loyalty solution enables you to collect an unlimited number of attributes and segments based on any combination.

For example, Sarah has been a loyal member of a home goods retailer’s loyalty program for several months now. The retailer has been collecting data on her shopping habits and preferences. Because of that, they know that she likes modern and minimalist decor.

One day, she visits the retailer’s website to buy a new lamp. As she scrolls through the lamp section, she sees a popup message that says, “Hi Sarah! We think you might like this modern and minimalist table lamp. Want to check it out?”

2. Craft an omnichannel experience

Want to create a flawless omnichannel journey? Collecting zero- and first-party data is critical to understanding what your customers’ value. Leveraging that data across every customer touchpoint is even more important. This is how your customers know you’re using the data they share to improve their experience. No matter how they choose to shop with you. Annex Cloud continually adds to our 125-plus integrations with the top martech solutions. This enables you to push robust loyalty data across your ecosystem to deliver the omnichannel experience your customers expect.

In our example, Sarah receives an email from that same home good retailer with personalized recommendations for other modern and minimalist items she might be interested in, based on her purchase history and preferences. She clicks through and finds several other items she loves and decides to add them to her wish list. Thanks to the retailer’s use of loyalty data, Sarah has had a seamless and personalized shopping experience across multiple channels, from the website to email.

Retailers that use three or more channels are seeing a nearly 500% higher order rate than those using a single channel.

3. Enrich experiences beyond transactions

How to differentiate yourself from other brands? Add value between purchases using a loyalty program in innovative ways. Here are a few ideas:

Create a resource hub—Use your loyalty program to create a resource hub where customers can find inspiration, ideas and tips. This could include articles on home decor trends, how-to guides for DIY projects and even video tutorials for using your products. Providing valuable tips and education can keep your customers engaged and interested in your brand, even when they’re not actively shopping.

Offer exclusive perks—Reward your loyal customers with exclusive perks they can enjoy between purchases, like early access to new product launches, free samples or even invitations to private events. Sandra Gudat, the CEO of Customer Communications Group, shares about a home décor and furnishings retailer client that realized some of their best customers weren’t being recognized in our Get Personal with Loyalty podcast series. So, they started sending a thank you email from the CEO that invited them into the store to receive a special gift and trained employees to get the Store Manager to personally thank them when they came in for the gift. This created an instant emotional connection with the brand.

Launch a contest—Gamification is one of 11 loyalty trends we recently shared. It’s a great way to add fun into your loyalty program and build emotional bonds with your customers. For example, you could launch a contest for the most dramatic kitchen makeover and have customers share photos along their journey.

Successful home goods loyalty programs

In the home goods industry, loyalty programs have become a popular way to reduce churn rates and retain customers. Now, let’s explore some examples of home goods retailers leveraging loyalty programs to boost their bottom line:

Bed Bath & Beyond

Bed Bath & Beyond’s loyalty program, Beyond+, offers members exclusive perks, such as 20% off their entire purchase, free standard shipping and access to exclusive offers and events. The program has been successful in retaining customers, with more than 1.5 million members since its launch in 2018. According to the retailer, Beyond+ members spend on average $300 per year, which is four times more than non-members.


Presently, Wayfair targets businesses and interior designers who frequently purchase from them with its loyalty program, Wayfair Professional. The program offers members exclusive discounts, dedicated customer service and free shipping on all orders. Since the launch of the program in 2017, Wayfair has seen a significant increase in customer retention, with members spending 2.5 times more than non-members.

Crate & Barrel

For loyal Crate & Barrel shoppers, CB2 Collective isn’t just a loyalty program; it’s a gateway to exclusive sales, events, and promotions, enriching their shopping experience. Members also receive free interior design services and personalized product recommendations. Additionally, the program has been successful in reducing churn rates, with members spending 18% more than non-members.

Future loyalty trends for home goods retailers

Overall, as technology continues to evolve, we can expect to see more advanced features and functionality in home goods loyalty solutions. Some future trends to watch for include:

• AI-powered personalization
• Gamification
• Corporate partnerships

To stay ahead of the curve and get behind the latest loyalty trends, read The Future of Customer Loyalty in 2023 & Beyond.

Close your CX gap with Annex Cloud

Are you ready to revolutionize the way your business engages with customers? Look no further than a cutting-edge loyalty program, built on a trusted and proven platform.

Imagine a loyalty program that enables you to effortlessly provide unique value your customers won’t find anywhere else. Above all, whether it’s personalized offers, exclusive perks or tailored content, Annex Cloud’s platform is scalable, configurable and flexible, so you can create a program that truly resonates with your customers. Let’s explore the possibilities and discover how Annex Cloud can help take your brand to the next level.

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