Loyalty Promotions Both retailers offer a loyalty program; Petco offers Pals Rewards and PetSmart offers PetPerks. Petco’s Pals Rewards program is very simple, yet compelling. Pals Rewards gives shoppers 5% back on every purchase. In addition, Pals Rewards delivers savings through preferred pricing and exclusive discount coupons. PetSmart’s PetPerks program offers benefits, but they aren’t as clearly articulated as the 5% back that Petco offers. PetPerks members enjoy in-store discounts, email alerts on sales of their favorite products, and a free treat on their pet’s birthday.
When it comes to in-store marketing, each retailer represented their programs with point-of-purchase signage. Petco clearly promotes the benefits of their loyalty program though end-cap signage as well as tying product sales to Pals Rewards. PetSmart, on the other hand, advertises savings that will be enjoyed from PetPerks, but they don’t articulate the other benefits of their rewards program as clearly as Petco does. In order to create awareness and increased membership, retailers need point-of-purchase advertising that clearly articulates the benefits of the program located strategically throughout the store.
While it’s not necessarily a loyalty program, Target’s strategy for promoting their REDcard is an example of best practice for in-store promotion. They place aisle invaders and bold end-cap signage clearly articulating the benefits of the REDcard strategically throughout the store. Pet Training and Grooming As I stated earlier, pet training classes and grooming services are a key differentiator that Petco and PetSmart have from grocers and big box retailers. It’s safe to say that pet owners generally know about these services; but how much are they learning from in-store marketing?
I was surprised to see that there was a lack of in-store marketing promoting these offers from both Petco and PetSmart. At Petco, if you searched hard enough, you could find small black and white advertisements for these services inserted into a pop out frame on an end cap. Shoppers would then need to ask a store associate for any further details. Petco and PetSmart should utilize in-store marketing to communicate these great services, rather than require shoppers to go out of their way to learn more. Many shoppers are
apprehensive to talk with associates because they either don’t want to be sold to, or feel that the associate will not be knowledgeable. Information about pet training and grooming should be posted at store fronts, in the checkouts, and strategically throughout the store with signage that could be locally customized to feature instructors, groomers, and benefits of the services. Missed Opportunity Petco has a great program called WholePets, which is a healthy pets program that highlights important categories in providing complete care to pets.
However, this program was only represented with one promotional piece at the store front. Petco offered a brochure to explain each category of health. This piece basically serves as an educational advertisement. But very few shoppers take the time to learn more about the program, or even notice the lama display. Petco should take this program a step further by utilizing Whole Pets as a tool to drive the shopper flow. They could incorporate the coordinating colors to products that pertained to the specific health categories.
Using this color coordinating theme, Petco can create a cohesive and educational experience and entice shoppers to purchase certain products to better the health of their pet. In-store marketing is a simple, yet powerful tool to create brand presence, drive sales, and loyalty. Both Petco and PetSmart are effectively executing some basic in-store marketing strategies, but there is a lot of room to improve. The key to creating revenue generating in-store experiences lies in truly understanding the shopper and designing a signage strategy that guides the shopper and drives them to purchase items and become loyal brand evangelists.
