Foot Locker Simplifies Loyalty Program, Adds Cashback

Foot Locker Simplifies Loyalty Program, Adds Cashback

Foot Locker soft-launched a revamped FLX loyalty program last week, using extensive voice of the customer research to offer tangible rewards.

Foot Locker soft launched an enhanced version of its loyalty program featuring a cashback option, with a more public launch set for this week.

The changes have already been received positively by customers, said Tyler Saxey, Senior Director of OMNI Global VOC and Care Solutions at Foot Locker, at Forrester’s CX Summit in Nashville, Tennessee.

The enhanced loyalty program is part of Foot Locker’s efforts to revamp its customer experience after it struggled financially in 2022, Saxey added. Listening to customers and implementing insights became the focus.

Foot Locker continued to collect traditional sources of customer data, like NPS scores, but to better determine customers’ desires, it analysed unsolicited feedback on social media, call centre transcripts and emails. The shoe retailer also conducted panel studies specifically on the FLX rewards program.

The enhanced loyalty program is “exactly what our customers are asking for,” Saxey said.

Previously, Foot Locker’s FLX points could be used for Head Starts on product releases or entered into raffles to win products like a PlayStation. But when customers spent all their points and didn’t win, it could sometimes leave them with a sour taste, Saxey said.

Foot Locker customers wanted simplified offerings — a trend seen among customers of other loyalty programs. A Deloitte survey from January found that more than 3 in 5 consumers seek simple cashback loyalty programs.

That, paired with some customers feeling cash-strapped, led the shoe retailer to settle on a cashback element.

“In this economy, any promotion that we send out, our customers are going to navigate to that,” Saxey said during a panel. Now, customers can convert points to dollars to offset the cost of a pair of sneakers.

“They want to be able to get discounts, they want to be rewarded,” Saxey added. “It guarantees a benefit to a customer as opposed to you’re still hoping that you win.”

The FLX program also features birthday coupons and tiers. As customers go up in tiers with spending, they get more benefits and coupons.