THE CLARUS Blog

Why 1-800-Flowers’ Loyalty Program is a Reason to Celebrate

The ongoing challenge for all retailers is that customer expectations continue to grow and the bar for meeting and exceeding them is constantly raised.

Just ask 1-800-Flowers.com, which launched its highly successful premium loyalty program called Celebrations Passport a few years ago.

Officials at 1-800-Flowers launched the Celebrations Passport loyalty program to enhance engagement, while providing a one-stop shop for all of their customers’ celebratory needs across its family of brands.

So, to have a loyalty program that seamlessly brings all its brands’ customers together in a seamless fashion is crucial for 1-800-Flowers.

 

Why Celebrations Passport Is a Critical Part of the Company’s Growth

During the company’s Jan. 30 second-quarter earnings call, CEO Chris McCann talked about the importance of the Celebrations Passport program.

“Throughout the first half of our fiscal year, we saw continued double-digit growth in Passport members as well as strong growth in the creation of new multi-brand customers,” McCann explained. “As a result, we continue to see improvements in the behavior metrics of our customer file, helping to drive increased lifetime value.”

The sign of truly customer-centric company is it never rests on its laurels and always centers everything on the customer.

McCann said the company remains “laser focused” on continuously improving the customer experience, and investing in innovative technologies, marketing, and merchandising initiatives to attract new customers and deepen existing customer relationships.

“We are growing our customer file, attracting increasing numbers of new customers, while deepening the relationships we have with existing customers,” McCann explained. “Helping to drive this are our Celebrations Passport Loyalty program, which provides free shipping for members, and our initiatives to grow multi-brand customers.”

The Celebrations Passport loyalty program carries an annual fee of $19.99 and customers receive free shipping/no service charge, exclusive member-only product previews, exclusive perks, and special offers. No minimum order size is required and members can receive unlimited deliveries.

 

How Does Celebrations Passport Impact Customer Loyalty?

While the Passport program saw double-digit growth in the first half of the company’s fiscal year on new customer acquisition, it also had a huge impact on existing customers.

McCann noted 66% of second-quarter revenue came from repeat customers.

“So, it’s showing a benefit of while we are increasing new customers, we are also deepening the relationship with our existing customer base and we’re really happy with that,” McCann said. “Again, looking at the programs like Passport, multi-Brand customer initiatives, what they’re doing to drive those healthy metrics for us.”

The Celebrations Passport program is driving company momentum, McCann noted.

“From a competitive point of view, we really outshined our competition, taking market share from them,” he added. “And we do that by really focusing on our brands, focusing on our digital marketing capabilities, focusing on the Passport program, the multi-brand customer initiatives that we have going in. These are the things that have been driving the momentum that has put us in a sustainable competitive position that we are in today.”

 

Always Enhance the Customer Experience

To maintain a successful loyalty program and elevated engagement rates, brands need to heighten the customer experience.

And that is a mantra for 1-800-Flowers.

In terms of marketing innovations, the company has introduced numerous enhancements to its customer experience, including a new augmented reality capability to help customers visualize their selections in their home or office environment, a redesigned mobile app with one tap buying, and a  gift finder tool and new AI-powered intelligent virtue assistant.

“Our focus on innovation to enhance customer engagement and customer experience positions us well to deliver continued strong performance in the current quarter and for the full year,” McCann added.

 

Cause to Celebrate

The Celebrations Passport program is a great example of premium loyalty at its best.

The program engages customers through attractive instant benefits, elevated engagement levels, and makes it part of their daily lives.

As a multi-brand retailer, when you focus on customer-centricity and deepening customer relationships through an attractive premium loyalty program, you’ll likely receive a high level of satisfaction and engagement.

But, 1-800-Flowers shows through its successful loyalty program, strong embrace of technological innovations, and a deep focus on its customers that the future continues to look bright.

What are you doing with your loyalty program that impacts new customer acquisition and existing customers?

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