THE CLARUS Blog

BJ’s New CEO Will Prioritize 3 Things to Elevate Customer Experience

With new CEO Lee Delaney at the helm, officials at BJ’s Wholesale Club discussed three key elements in an earnings call that they feel will strengthen customer relationships going forward.

“Our investments will be disciplined growth-oriented and anchored in our strategic pillars: To acquire and retain members, deliver value to keep them engaged, make it more convenient, and expand our reach,” Delaney explained.

Here’s what BJ’s will focus on:

 

1. Focusing on Member Retention, Not Just Acquisition

“In 2020, we’ll continue to invest in new member acquisition, acquire younger members and continue to retain members by offering unbeatable value on quality products and services,” Delaney noted.

Called “the foundation” of BJ’s, Delaney wants to continue to invest to improve the quality of the company’s membership base.

In fiscal 2019 Delaney noted that BJ’s reduced its reliance on trials, which now represent less than 3% of the total membership base, compared to 10% five years ago.

“We’ve also increased our higher tier penetration through increased rewards members and the number of members that hold a BJ’s Mastercard,” he added.

BJ’s improved its acquisition analytics, shifting its efforts toward digital channels, and doubled the rate of members acquired digitally year-over-year.

For the year, BJ’s made good progress with higher tier penetration and the Easy Renewal program and maintained its all-time high renewal rate of 87%.

BJ’s officials understand that member acquisition is important, but they also realize that retaining current members is crucial to maintain the brand’s message and create sustainable brand loyalty.

 

2. Making Memberships More Valuable to Members

BJ’s will focus on curating products and services to enhance the value of membership.

“We have a tremendous opportunity to enter new product and service categories, where we can offer great member value and deliver growth,” Delaney explained.

Also, Delaney said the company will continue to launch and aggressively market new omni services to delight members and elevate the value of their membership.

Another way BJ’s is adding value to members is through its Buy Online Pick Up In Club and same-day delivery capabilities. Delaney believes that BOPIC and same-day delivery offer the potential for considerable growth.

“Members who leverage these capabilities skew younger and spend more,” he noted.

BJ’s has heard its customers and is responding to their input. It’s very important to keep programs fresh by adding to them over time.

Brands, such as BJ’s, that continuously update their offerings, often receive elevated engagement levels.

 

3. Elevating Marketing Communications

BJ’s officials want to “ensure that members and prospective members appreciate our transformation and the outstanding value we offer.”

Investments in data and science-driven promotional capabilities allow BJ’s to deliver highly personalized offers and targeted promotions with “unbeatable value” to members.

“We’ll also expand and build on our digital marketing capabilities, enabling us to engage with existing and new members across all-digital channels,” Delaney said. “Importantly, we will integrate and simplify messaging across all channels to ensure that members have a seamless and better overall experience.”

 

On the Road to Loyalty Success

Armed with these three priorities, BJ’s officials are well on their way to enhancing member value, improving the quality of its membership, and elevating their communications.

Convenience, enhanced value, curated products and services, and personalization are key words that will help BJ’s gain increased customer loyalty and brand trust.

Think about how you can apply these initiatives to build a better experience for your customers.

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