PetSmart's Treats Rewards program revamp introduces new tiers: Bestie and VIPP, aiming to deepen customer engagement by offering more tailored perks based on spending levels. This strategic enhancement, led by the insights from PetSmart's leadership and informed by evolving retail trends, specifically targets the preferences and values of modern consumers, including Gen Z.

This demographic values transparency, ethical practices, and a sense of community, trends that PetSmart seeks to capitalize on by aligning its loyalty rewards with these broader consumer expectations. The move reflects a larger trend in retail towards personalized, value-driven shopping experiences, encouraging loyalty through recognition of customers' unique preferences and contributions to the brand.

PetSmart's revamped program introduces tiers based on annual spend, offering more points per dollar at higher tiers. It includes personalized offers like birthday gifts for pets, and benefits for using services like grooming. The program also rewards charitable donations with extra points. This enhancement aims to deepen connections with PetSmart, offering a more personalized shopping experience. In April 2023, PetSmart expanded customer convenience by partnering with Uber Eats for on-demand delivery from over 1,600 stores.

Why This Matters

PetSmart's revamp of its loyalty program signals an important shift towards catering to evolving consumer expectations, emphasizing the importance for DTC brands to understand and integrate values important to demographics like Gen Z into their strategies.

This demographic prioritizes ethical practices, sustainability, and engaging retail experiences, making it crucial for brands to adapt their loyalty programs and overall strategies to these values. Successfully doing so could be key to building long-term loyalty and tapping into the considerable purchasing power of younger consumers, highlighting the need for brands to remain flexible and responsive to changing consumer behaviors.

Key Takeaways for DTC Brands

The new program, introducing new tiers based on spending, illustrates a strategic move to deepen customer loyalty by rewarding higher spending with more personalized perks. This approach not only incentivizes increased spending but also suggests a nuanced understanding of consumer behavior—people are motivated by exclusivity and personalized rewards. For DTC brands, the lesson is clear: 

Tailoring loyalty programs to reward not just frequent purchases but also higher spending can create a more engaged and loyal customer base. This strategy leverages psychological drivers of consumer behavior, such as the desire for status and personalization, which can be particularly effective in a competitive retail landscape.