Foot Locker announced in March that it would be revamping and relaunching its mobile app and rewards program this year as part of its ongoing “Lace Up” plan to streamline and grow the business. On Tuesday, Foot Locker rolled out the newly reimagined FLX Rewards program and shared details with Glossy about what the new mobile app will look like when it launches later this year.
Both the new FLX Rewards program and the new app are focused on two things, according to Foot Locker’s chief customer officer, Kim Waldmann: improving the connection between Foot Locker’s online and offline retail, and giving customers better access to limited products.
“Everything we do is grounded in talking to our customers,” Waldmann said. “So we asked them [through surveys] the kinds of things they wanted. [They told us they want] better product access, better chances to win high-heat products and more rewards for being loyal customers.”
One way Foot Locker is now doing that is by allowing customers to spend their rewards points to secure a better chance at limited and exclusive product drops. It works like this: When limited edition products are about to drop, users can log in to their FLX Rewards app and submit an entry that is selected by raffle. Customers can spend loyalty points on “Xtra Boosts” which increase their chances to be selected. Previously, points could be used to get cashback and discounts on future products.
There’s no limit to how many points customers can spend on boosts. But to help customers know when to spend those points, Foot Locker will also be introducing a “Heat Monitor” to the mobile app providing an approximate indication of how desired, and therefore difficult to get, each product is. Other new perks added to the loyalty program include free returns for members to go along with the existing free shipping.
Waldmann said the exact process of determining a product’s heat is a proprietary model that takes into account factors like how many people have preordered the product and how the product has historically performed if it has been released before. It also considers brand-provided information like product runs and future releases. The intention is to prevent customers from using up their points on a low-heat product they already have a good chance of getting.
The other main goal for the app’s redesign is integrating its in-store and online sales. A new “Store Mode” in the app will let customers scan products in-store to check sizing availability, for example. That feature is planned to roll out at the beginning of next year.
Waldmann said Foot Locker’s store associates will be key to promoting the rewards program. They’re directed to educate customers on the perks available and encourage signups in-store, where the majority of Foot Locker’s sales are made.
Foot Locker has been trying to grow its online sales to be a bigger part of its revenue split. Its online sales increased from 17% of all purchases to nearly 20% last quarter. Foot Locker’s revenue last quarter was $2.3 billion, a 2% increase from the quarter before.
The new FLX Rewards program was piloted in Canada earlier this year. It brought higher engagement, higher average order value and higher trip frequency among members. Overall, more than 20% of Foot Locker’s sales last quarter came from loyalty members. Foot Locker aims to have 50% of its customers signed up for the program by 2026 with an ultimate goal of reaching 70% penetration.
“Our enhanced FLX Rewards program represents a significant step in providing a seamless shopping experience for sneaker enthusiasts,” said Mary Dillon, Foot Locker’s CEO, adding that the program will hopefully strengthen the company’s customer relationships and Foot Locker’s omnichannel offerings.
