Latest / Leaders in Customer Loyalty, Powered by Loyalty360 / #444: Leaders in Customer Loyalty: Brand Stories | Fleet Feet's Milestone Moment: How a Community-First Retailer Is Elevating Loyalty for the Long Run

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#444: Leaders in Customer Loyalty: Brand Stories | Fleet Feet's Milestone Moment: How a Community-First Retailer Is Elevating Loyalty for the Long Run · Leaders in Customer Loyalty, Powered by Loyalty360

• 0:03
  Speaker 1: Health and wellness have become cornerstones of the modern American lifestyle, and the industry is in the midst of a rapid, continuous transformation.
• 0:12
  Speaker 1: The definition fitness has evolved dramatically.
• 0:15
  Speaker 1: No longer is limited to signing up for a gym membership, lifting weights or logging tons of miles on that local treadmill.
• 0:24
  Speaker 1: Today, people are walking, hiking, biking and using apps to track everything from calories to steps to personal performance, all in the pursuit of becoming the best version of themselves.
• 0:39
  Speaker 1: The shift has created new opportunities for innovation, and one brand is leading the way Fleet Feet, a boutique running store founded in 1976 in Sacramento, california, has grown into one of the most progressive fitness retailers in the country.
• 0:51
  Speaker 1: Routed in community, fleet Feet also operates one of the most successful and innovative customer loyalty programs in the retail space.
• 0:59
  Speaker 1: Today, we're excited to dive into the industry, dive into the story and explore the impact and evolution of the Milestone Loyalty Program.
• 1:09
  Speaker 1: Joining us today is Abby Gurley, senior Manager of Customer Loyalty at Fleet Feet.
• 1:14
  Speaker 1: Abby, how are you today?
• 1:16
  Speaker 1: Thank you for joining us.
• 1:17
  Speaker 2: Sure, I'm great.
• 1:18
  Speaker 2: It's a beautiful day in North Carolina.
• 1:20
  Speaker 1: That's great.
• 1:21
  Speaker 1: That's good to know For those who may not know about Fleet Feet.
• 1:25
  Speaker 1: Can you give us a short introduction to the company?
• 1:27
  Speaker 2: Sure.
• 1:28
  Speaker 2: So Fleet Feet was founded in 1976 by two women, friends and school teachers, sally and Elizabeth, which is pretty cool because the running industry was still very much male dominated at that time.
• 1:38
  Speaker 2: The first store was located in Sacramento, california, in an old Victorian house.
• 1:43
  Speaker 2: It served as a hub for the running community and those seeking footwear.
• 1:47
  Speaker 2: Today, fleet Feet is the largest franchisor of locally owned and operated run specialty stores.
• 1:52
  Speaker 2: We have more than 280 stores in 40 states and we're committed to providing runners, walkers and fitness enthusiasts with outfitting, expertise, robust training programs, community to support and, of course, a fantastic loyalty program.
• 2:06
  Speaker 2: Fleet Feet Milestones.
• 2:08
  Speaker 1: That's awesome.
• 2:08
  Speaker 1: Looking forward to getting into more about Fleet Feet Milestones in a little bit.
• 2:12
  Speaker 1: What's the company's backstory?
• 2:15
  Speaker 1: You talked about where it was founded by two women, which is awesome.
• 2:17
  Speaker 1: It was a local hub.
• 2:19
  Speaker 1: What was the opportunity that the founder saw?
• 2:21
  Speaker 1: Was it just more providing that opportunity for the local community to engage or, you know, was there a larger vision?
• 2:28
  Speaker 2: I think it was a mix of both product and serving as a hub in the community where runners could get together and find support.
• 2:37
  Speaker 1: Excellent.
• 2:38
  Speaker 1: Can you tell us a little bit more about your role with the company?
• 2:41
  Speaker 1: You know?
• 2:41
  Speaker 1: How did you get into customer loyalty and were there positions that kind of led you up to this role and said I really want to be in customer loyalty, customer experience?
• 2:50
  Speaker 2: Sure, so I started with Fleet Feet in 2015, actually at one of our franchise locations Fleet Feet Pittsburgh and I led the local marketing efforts there.
• 3:00
  Speaker 2: In 2018, I joined the store support team at Fleet Feet's headquarters in Carrboro, north Carolina, and I've worn a lot of different hats on the marketing team, from focusing on grassroots strategy to our national activations, but most recently I joined the CRM team and I turned my efforts toward revamping Fleet Feet's loyalty program and we launched Excellent.
• 3:24
  Speaker 1: So when you look at your role, customer loyalty is kind of a unique opportunity.
• 3:30
  Speaker 1: We were talking to some today about it kind of who moved over from advertising.
• 3:33
  Speaker 1: They thought, oh, customer loyalty is going to be very easy being in advertising.
• 3:36
  Speaker 1: They're like it's significantly more difficult.
• 3:38
  Speaker 1: Right Analytics, marketing technology, the numbers really have to match.
• 3:43
  Speaker 1: We're in advertising.
• 3:44
  Speaker 1: There's a lot of fluff, but when you look at your role, what are some of the biggest challenges or opportunities that you face in your position?
• 3:53
  Speaker 2: Sure.
• 3:54
  Speaker 2: So I think the most challenging but also the most rewarding part of my role is navigating all of our stakeholders to create the best possible program, campaigns and experiences really for everybody involved.
• 4:06
  Speaker 2: So this includes our local owners and operators Are we being mindful of their needs?
• 4:12
  Speaker 2: And the customers Are we creating a premium rewards program and offerings that really enhance their overall experience with Fleet Feet and bring them a little extra joy?
• 4:21
  Speaker 2: But also our brand and community partners.
• 4:24
  Speaker 2: So finding that perfect mix of new and exciting campaigns that serve our local teams, our customers and our partners is definitely it keeps me diligent, but again, it's also so incredibly rewarding when we're able to accomplish this.
• 4:39
  Speaker 1: OK, you look at the fitness industry, it's seen a lot of a significant amount of disruption uh, more digital apps, digital engagement.
• 4:47
  Speaker 1: Uh, you know people having home home gyms and then people that are running or doing more you know, uh, different types of outdoor activities.
• 4:55
  Speaker 1: You know how has the fitness industry maybe changed over the last few years?
• 4:59
  Speaker 1: And you know the fitness upstarts that are, you know, doing some new things to different shoe entities.
• 5:05
  Speaker 1: Uh, you're kind of taking on the legacy riders of Nike and Adidas.
• 5:09
  Speaker 1: You know how do you see the fitness industry, the apparel industry, fitness apparel industry changing?
• 5:16
  Speaker 2: So I think, when it comes to our customers and the types of activities that they're self-reporting, we do see a real mix.
• 5:25
  Speaker 2: I think that one might assume that Fleet Feet serves only runners or people aspiring to be runners, and while we take a lot of pride in being a one-stop shop for all things running, we also see active people who are more generally focused on their health and running might be one part of their overall fitness.
• 5:45
  Speaker 2: We also see people who are more focused on walking, or people who are aiming to just feel and move more comfortably.
• 5:53
  Speaker 2: So, ultimately, because we serve such a range of customers, as fitness trends come and go, flee Fee really remains consistent and relevant, a resource for everyone and anyone who needs a comfortable pair of shoes or gear or community support to support their unique goals.
• 6:11
  Speaker 1: Okay, and when you look at some of the macroeconomic issues that are impacting a number of brands right now, you know how are the macroeconomic issues impacting, you know the industry and how are you preparing for them at Fleet Feet.
• 6:26
  Speaker 2: So Fleet Feet certainly doesn't operate in a vacuum, and we've had a lot of learnings in the almost 50 years since we opened that first store in 1976.
• 6:35
  Speaker 2: Over the decades, we found that running and walking remains a consistent part of people's fitness routines, even during times of economic uncertainty, probably because it's almost always more affordable to buy a new pair of shoes versus joining a gym or buying home equipment, for example.
• 6:51
  Speaker 2: So we don't take that for granted, though, and we are committed to continuing to show up for customers in new and convenient ways again, with gear and personalized recommendations, training and support.
• 7:04
  Speaker 1: One of the big areas of interest in our community right is customer loyalty.
• 7:07
  Speaker 1: Very impactful, very important.
• 7:09
  Speaker 1: What it means to different organizations vary.
• 7:12
  Speaker 1: Do you have organizational support?
• 7:13
  Speaker 1: Are you buying into the program itself?
• 7:15
  Speaker 1: Is it a cost versus investment?
• 7:17
  Speaker 1: And when you look at customer loyalty, what does it mean to Fleet Feet?
• 7:22
  Speaker 2: So when I think about customer loyalty, there are a few things that come to mind.
• 7:26
  Speaker 2: I think of the person who's found a community at Fleet Feet through our training programs, and I think of the trust in Fleet Feet that our local team members work hard to earn every day by helping customers find the best solutions for their needs, whether that's a performance product for their next race or footwear to help them comfortably stand at work all day or just take a walk around their neighborhood.
• 7:50
  Speaker 2: I think people who bring their friends and family members back to Fleet Feet.
• 7:54
  Speaker 2: They come to mind so that they can share their amazing in-store experience with others.
• 8:00
  Speaker 2: Ultimately, loyalty stems from so many incredible areas that make up Fleet Feet, and my goal with Fleet Feet Milestones is that it's really the cherry on top of all those great experiences and a friendly reminder to come back and see us again soon.
• 8:15
  Speaker 1: Excellent when you look at the Fleet Feet Milestone program award-winning great program.
• 8:21
  Speaker 1: The Fleet Feet Milestone Program award-winning, great program, very focused on the customer.
• 8:25
  Speaker 1: You know how does the vision you have for the Fleet Feet Milestone Program fit into your overall vision for customer loyalty?
• 8:32
  Speaker 2: So, again, I think that it really complements what we do in store every day.
• 8:39
  Speaker 2: I think it adds moments of stated benefits that people can really look forward to, but then it also adds these surprise and delight moments through, like our sweepstakes or early access opportunities.
• 8:52
  Speaker 2: It's really meant to just serve as another kind of perk and reminder of why people choose.
• 8:59
  Speaker 1: Fleet Feet.
• 9:00
  Speaker 1: That makes perfect sense.
• 9:02
  Speaker 1: And how long has the program been in existence?
• 9:04
  Speaker 2: So we rolled it out just this past summer, in July of 2024.
• 9:08
  Speaker 1: Okay, excellent.
• 9:10
  Speaker 1: So when you look at the current version of the program, it's been in existence since last summer.
• 9:15
  Speaker 1: How did it evolve from the previous program?
• 9:19
  Speaker 2: Sure.
• 9:19
  Speaker 2: So again, we rolled out Fleet Feet Milestones in July 2024, and the current program includes two membership levels Pacesetters and Frontrunners, plus annual birthday offers for all members.
• 9:31
  Speaker 2: And then Frontrunners also enjoy accelerated earning, higher valued birthday offers and access to sweepstakes and special opportunities.
• 9:39
  Speaker 2: Prior to Fleet Feet Milestones, we rolled out our first ever national program in 2019.
• 9:45
  Speaker 2: And over time, we monitored customer behaviors and gathered insights to guide our loyalty program evolution.
• 9:51
  Speaker 2: Some of those included customer purchase and engagement metrics.
• 9:56
  Speaker 2: So we analyzed a year's worth of customer behavior and, while our program met industry standards in a lot of areas, there were two critical metrics based fund rate and earning rate that were significantly higher than average.
• 10:08
  Speaker 2: So to ensure long-term sustainability and create room for innovation, we did need to adjust those factors.
• 10:14
  Speaker 2: We also leaned into customer surveys and we heard from more than 5,000 customers who shared their preference and ultimately helped us prioritize enhancements like the birthday offers and those early access opportunities and sweepstakes as well.
• 10:28
  Speaker 2: So ultimately, by blending the customer insights, our local store feedback and data driven enhancements, Fleet Feet Milestones delivers a loyalty experience that deepens customer engagement while remaining manageable and sustainable for our local franchise and company-owned stores.
• 10:45
  Speaker 1: You talked about it a little bit.
• 10:46
  Speaker 1: Customer feedback looked at the redemption rate, the earning rate as you evolved the program.
• 10:51
  Speaker 1: How important was the feedback from customers as you look to evolve and roll out the new program?
• 10:57
  Speaker 2: last year, it was incredibly important, so it really helped us to shape the different benefits that we would provide through the program.
• 11:07
  Speaker 2: I think we were not really surprised, but it was validating to see how special birthdays are for people and how they want to be recognized during that time of year with some kind of special offer.
• 11:18
  Speaker 2: And then the sweepstakes really bubbled up as well as something that folks look forward to.
• 11:24
  Speaker 1: Excellent.
• 11:25
  Speaker 1: When you look at the vision for the program, it seems to be very integrated within the organization.
• 11:29
  Speaker 1: Has strong exec level support.
• 11:32
  Speaker 1: When you look at the vision for the program, where do you want to take the program in the future?
• 11:37
  Speaker 2: So we really continue to closely monitor customer sentiment and feedback as we look to further enhance and evolve and so that we continue to deliver on things that customers are asking for.
• 11:49
  Speaker 2: One quick example is more reminders via text message so that customers are even more aware of the offers and the points that they have and their expiration date, so that they never miss an opportunity to redeem their benefits.
• 12:03
  Speaker 2: Other than that, we're looking for more ways to surprise and delight our members with more unique offers or special access opportunities, for example.
• 12:12
  Speaker 2: Ultimately, we want the program to continue to serve as just one more reason and reminder around why customers choose Fleet Feed.
• 12:20
  Speaker 1: Okay, one of the challenges we see in our audience is the engaging of younger consumers.
• 12:24
  Speaker 1: Right, making sure the product is simple, easy to understand, provides value, doesn't have some of the complexities that some loyalty programs have.
• 12:32
  Speaker 1: When you look at Fleet Feet, who prides itself on blending performance gear with community-driven experiences, and how is the opportunity or the challenges you see of getting kind of a younger generation involved with the brand and with the customer loyalty program?
• 12:50
  Speaker 2: Sure.
• 12:50
  Speaker 2: So while we are focused on more customer segmentation to ensure that we're catering to different preferences and needs, our younger customers are typically within that 30 to 45 range, and when we focus on groups younger than that, that's most often reflected in the ways that we show up to support the next generation of runners.
• 13:10
  Speaker 2: So, for example, we're so proud of our partnership with Girls on the Run and the work they do, and Fleet Feet currently serves as their national 5k sponsor.
• 13:19
  Speaker 2: Additionally, many of our owners and operators foster partnerships with their local track and cross country coaches and teams, and they support those young athletes with outfitting events and the gear that they need for a success.
• 13:33
  Speaker 2: It's really a mix of the kind of perks that we bring to consumers via Fleet Feet Milestones, but also there's a lot of partnerships and local outreach as well.
• 13:44
  Speaker 1: That's awesome.
• 13:44
  Speaker 1: When you look at emotional loyalty, that's another facet of customer experience CRM, customer loyalty that's very important because brands know if they have an emotive brand, if they have an emotional connection with their customers, that it can be simply advantageous from a financial performance perspective.
• 14:00
  Speaker 1: So when you look at emotional loyalty, what does it mean to Fleet Feet and what are some of the challenges you have with regard to potentially measuring customer loyalty?
• 14:09
  Speaker 1: Emotional loyalty that is Sorry.
• 14:12
  Speaker 2: Sure, I think that emotional loyalty shows up for us in both quantifiable and qualitative ways.
• 14:18
  Speaker 2: Emotional loyalty shows up for us in both quantifiable and qualitative ways.
• 14:21
  Speaker 2: So we see our Fleet Feet Milestones.
• 14:22
  Speaker 2: Member revenue is up 9% year over year and this is the timeframe that encompasses the first six months after we made significant changes to the loyalty program and rolled out Fleet Feet Milestones.
• 14:32
  Speaker 2: I think these numbers are telling us that we put in the work to listen to what the customer wants in a loyalty program and the impact and how they're responding shows in those numbers.
• 14:42
  Speaker 2: Additionally, our customer sentiment around the loyalty program has improved 3% year over year, which is measured from feedback directly from the customer after they visit Fleet Feet.
• 14:54
  Speaker 2: So again, these hard numbers are telling us that we're headed in the right direction.
• 14:58
  Speaker 2: But on top of that, the qualitative feedback customers provide us really helps to give us an even greater sense of their emotional loyalty and why they choose Fleet Feet.
• 15:09
  Speaker 2: We had one customer who gave us great feedback after a purchase and they shared quote.
• 15:16
  Speaker 2: The rewards program is great.
• 15:17
  Speaker 2: You have great deals on products I trust and use and I do get the sense that it's genuinely important to the company to help people run healthy.
• 15:25
  Speaker 2: So ultimately, I feel that emotional loyalty is the trust and fleet fee that we earn and work hard every day to keep with our customers excellent.
• 15:35
  Speaker 1: You have a great deal of data on your customers transactional data, behavioral data, biometric data from feet scanners, fitness app tracking.
• 15:44
  Speaker 1: How do you use the data in a stewardly manner to drive the personalization that you spoke of early?
• 15:50
  Speaker 1: And obviously there's this challenge of staying compliant, making sure you're only tracking essential cookies or essential data points.
• 15:58
  Speaker 1: How do you balance all of that within TP?
• 16:01
  Speaker 2: Sure, I think transparency is really key here.
• 16:04
  Speaker 2: So, as policies evolve, we make sure that we and our local teams are communicating the what, why and how to customers via email or in our stores, so that they're not caught by surprise.
• 16:17
  Speaker 2: We also work hard to ensure that the customer is the one making the decision every step of the way when it comes to their data, loyalty program membership and how they engage with it.
• 16:27
  Speaker 2: So they, the customer, provide their email address if they'd like their scan data kept on file.
• 16:33
  Speaker 2: They take action to join Fleet Feet Milestones in store.
• 16:36
  Speaker 2: They tell us if they want to continue to hear from us via email.
• 16:38
  Speaker 2: They take action to join Fleet Feet Milestones in store.
• 16:38
  Speaker 2: They tell us if they want to continue to hear from us via email.
• 16:40
  Speaker 2: They give us their birthday if they want a birthday offer, and we continue to see great results when we leave that element of choice to the customer.
• 16:49
  Speaker 2: So, for example, we see around 90% of our new customers opting in to join our loyalty program, and while 100% is even better, it's more important to us that the customer enrolling in the program is doing so intentionally and that they're excited by what Fleet Fee Milestones has to offer.
• 17:06
  Speaker 1: You talked about personalization a little bit earlier.
• 17:08
  Speaker 1: It's a major focus for many brands these days, right To make sure they have the relevant message, the right channel, the right time.
• 17:14
  Speaker 1: When you look at fitness and wellness space, it's diverse, as you mentioned.
• 17:18
  Speaker 1: People could be runners, walkers, they lift weights all kinds of fitness opportunities.
• 17:24
  Speaker 1: You know how do you look at personalization and making sure you're catering to this very diverse audience.
• 17:32
  Speaker 2: Sure, so we're really grounding our personalization efforts in how we can be even more helpful for customers.
• 17:39
  Speaker 2: So this does involve a mix of data and customer feedback to best understand how we can improve the fleet feed, milestones and overall customer experience, based on the customer's unique needs and preferences.
• 17:52
  Speaker 2: So, for example, I mentioned that we surveyed more than 5,000 customers to understand their preferences before we made any changes to the loyalty program and ultimately, their direct feedback is what helped us in our decision making and which enhancements to prioritize.
• 18:07
  Speaker 2: Additionally, we were also pleased to roll out several new email automations this summer to keep members informed around their points and their reward balances, and we believe this additional communication and helpful reminders has contributed to the growing redemption rate, which was up 2% year over year in the first six months.
• 18:25
  Speaker 2: But, that said, we can see in the data and the feedback that not every customer prefers email communication.
• 18:31
  Speaker 2: So, as I mentioned earlier, we're looking at new communication channels like text messaging to help more of our customers keep track of all their perks in a way that they want to be updated.
• 18:42
  Speaker 1: Excellent, and what are two or three things you're most proud of for your program?
• 18:46
  Speaker 2: Sure.
• 18:47
  Speaker 2: So, looking at our program and the revamp that became Fleet Feet Milestones, I'm most proud of the care that we took with our people so that's, our local teams and our customers and I think this is reflected in a couple ways.
• 19:02
  Speaker 2: So, first, our local store owners and employees played a critical role in shaping the program and by keeping them informed and incorporating their feedback, we ensured smooth adoption and strong local support.
• 19:13
  Speaker 2: The program name itself was chosen through a vote among our brand advisory council members, which is a group of local owners and operators, and store teams have reported feeling well-equipped and excited to introduce the program to customers.
• 19:26
  Speaker 2: In addition to customer sentiment being up in a measurable way, the excitement that Fleafy Milestone members have been expressing is so fun and fulfilling to see.
• 19:36
  Speaker 2: Our sweepstakes and exclusive access opportunities have been particularly well received.
• 19:41
  Speaker 2: There was one winner who received a trip to the LA Marathon sponsored by our partners at ASICS, and they shared with us.
• 19:48
  Speaker 2: He shared with us that he never planned to run a marathon but after winning the prize, that changed for him and he accepted the prize and finished the race, and that was really special to hear about.
• 20:01
  Speaker 1: That's awesome.
• 20:02
  Speaker 1: Those are great personal experiences that show the kind of strength of the brand, just the relatability you have for the brand.
• 20:07
  Speaker 1: So it's great to hear.
• 20:07
  Speaker 1: And the last question we have you know, what can Loyalty360 do to help you and your team and your customer loyalty efforts?
• 20:14
  Speaker 2: Yeah.
• 20:15
  Speaker 2: So as customers' needs really change and evolve, I think that all of us in the loyalty and CRM space are faced with challenges and opportunities to meet those needs.
• 20:25
  Speaker 2: I'm really looking forward to leaning into the Loyalty360 team, partners and attendees to hear more about how others are pushing programs and campaigns forward and finding new and innovative ways to serve and delight customers.
• 20:40
  Speaker 1: Excellent.
• 20:40
  Speaker 1: And now we have our wonderful quickfire question round, where we like to ask a series of questions but keep the responses short to one word or a short phrase, and the first one we have is what is your favorite word?
• 20:52
  Speaker 2: Epiphany.
• 20:54
  Speaker 1: Excellent.
• 20:54
  Speaker 1: What's your least favorite word?
• 20:55
  Speaker 1: Excellent.
• 20:56
  Speaker 1: What's your least favorite word?
• 20:57
  Speaker 1: Bullish.
• 20:58
  Speaker 1: What excites you?
• 20:59
  Speaker 2: Customer data.
• 21:01
  Speaker 1: What do you find tiresome?
• 21:02
  Speaker 2: Long report load times.
• 21:04
  Speaker 2: There you go, is there a book that you've read, that you're a big fan of, that you'd like to?
• 21:12
  Speaker 1: recommend to colleagues Never Split the Difference by Chris Voss.
• 21:14
  Speaker 1: Okay, if there was a profession other than the one you currently are in, is there one that you'd like to attempt?
• 21:20
  Speaker 2: Some kind of nonprofit work?
• 21:22
  Speaker 2: Okay, what do you enjoy doing that?
• 21:28
  Speaker 2: You often don't get the time to do Chatting with other loyalty and CRM experts.
• 21:31
  Speaker 1: Okay, perfect.
• 21:32
  Speaker 1: Who inspired you to become the person you are today?
• 21:35
  Speaker 2: Honestly too many people to name.
• 21:37
  Speaker 1: There you go.
• 21:38
  Speaker 1: What do you typically think about the end of the day?
• 21:40
  Speaker 2: My to-do list for the next day.
• 21:42
  Speaker 1: And how do you want to be remembered by your friends and family?
• 21:45
  Speaker 2: Kind and hardworking.
• 21:47
  Speaker 1: All right, great Well, Abby, thank you very much for taking the time to speak with us today.
• 21:50
  Speaker 1: It's great having you on the Leaders in Customer Loyalty series.
• 21:52
  Speaker 1: Looking forward to meeting you in person and looking forward to keeping up with Fleet Feet throughout the rest of the year on kind of the evolution of the program and hearing about its great success.
• 22:03
  Speaker 2: Thanks so much, mark, I really enjoyed this.
• 22:05
  Speaker 1: Absolutely, and thank you everyone for taking the time to join us today.
• 22:08
  Speaker 1: Make sure you join us back every Thursday for a new edition of our Leaders in Customer Loyalty series, the Brand Stories, and we'll talk with you soon.
• 22:15
  Speaker 1: Until then, have a wonderful day.