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Eastern Mountain Sports Climbs the Loyalty Mountain

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Eastern Mountain Sports Climbs the Loyalty Mountain
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Somewhere in my bio there’s a line that hints at the value of a good long run to clear the head and spark fresh thinking. Earlier this week, I joined a regular crew of triathletes for an ocean swim. It happened to be one of those choppy, jelly fish laden days with the Atlantic sporting a strong current to boot. “Crazy” to some, we had a blast.

With those admissions out of the way, you might imagine my interest in outdoor retailers Eastern Mountain Sports and REI.com. My first visit to an EMS store was many years ago during a visit to Vermont. For a flatlander from Florida, I was fascinated with all the gear available for rock climbing, camping, hiking, not to mention some hi-tech clothing to keep me from freezing during my trip. My introduction to REI was through e-commerce as they didn’t have stores in my area and seem to have generally light coverage on the East Coast.

Still, REI is the larger chain, with 123 stores and $1.8 Billion in revenues compared to the 68 stores and approximately $200 Million revenue generated by EMS. REI has grown on the branding of a cooperative business model, connecting with customers through shared interests of the outdoors, but also sustainability and stewardship for the environment. This model promotes the idea of shared ownership with its customers, going so far as to position what others might call a customer club or loyalty program as an REI Membership that pays an annual REI Dividend of about 10%.

If you are to believe a battle of the brands article published in DM News in June 2012, you would think that REI can do nothing wrong from a marketing perspective while EMS struggles to get its voice heard, especially in social channels.

Well, it appears that EMS has done something “right” by launching its first ever rewards program in partnership with Smart Button. EMS Rewards launched officially on September 1 and offers members the opportunity to earn points at levels between 1-10% of purchase amount depending on whether the item purchased is EMS branded, non-EMS branded, or considered a clearance or outlet item.

For a complete view of program rules, you can read the FAQ’s provided by EMS here. True to the outdoor branding that appeals to nature lovers and the environmentally conscious, EMS Rewards communicates through electronic channels and eschews plastic as no member card or keyfob attachment are needed to identify a member at the point-of-sale.

Trevor Edwards, Smart Button, commented that “the idea was to create a program that not only rewarded customers across the spectrum of value, but also connected with people on an emotional level”. Trevor has been at the loyalty marketing game for a number of years and is skilled at crafting technology solutions that are practical to implement while being easy to use by customers. It seems his influence on EMS Rewards will turn some heads.

We have always maintained that a loyalty or rewards program will not solve otherwise insurmountable business problems. At the same time, we have witnessed many instances where a loyalty program has been a very effective “tie – breaker” in a hotly contested market. As David-like EMS fights for its share of the outdoor enthusiast market against Goliath-like REI, the launch of EMS Rewards is a well-timed initiative that should reward EMS, as well as its customers who join the program.

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