The founders of The Home Depot, the largest home improvement retailer in the United States, had a special vision. They aimed to facilitate the work of their customers by providing them with services that make it simple for them to get in, get what they need, and get back to work quickly and easily. One of the ways they wanted to achieve this was through The Home Depot rewards program, Pro Xtra. So, let’s see how their goals are reflected in the program!
Membership Page – For The Pros
Due to the fact that contractors, remodelers, as well as construction, installation and repair workers make up a large percentage of Home Depot’s customer base, the company mainly focuses on these professionals with their loyalty program. Customers can sign up for The Home Depot’s loyalty program immediately from the main page. The sign-in page is quite simple, and straightforward. At first glance you won’t find too much information about their loyalty program, however. Only when navigating to the “For the Pro” menu do newcomers get a real look at the advantages of becoming a member.
From here on, prospective members can find extensive descriptions of the benefits and services of the program. The Home Depot’ s loyalty program ProXtra has a dedicated site where members can get to know how they’ll be rewarded and what kinds of exclusive perks they can enjoy. Members can also learn about Pro Xtra Business Tools such as the Pro Xtra Virtual ID, reloadable gift cards and commercial credit, and The Home Depot App.
Why it works
- Avoiding asking too many questions at the outset will ensure you have a greater chance of getting people to sign up. For programs that target a very specific group of people, however, you might be able to ask more questions, which will help you personalize the experience appropriately.
- Home Depot really shows off the program’s benefits, which makes it irresistible for newcomers and reminds current members of what they can do within the program.
Program Structure – Growing Business Together
Pro Xtra is a free-to-join perks loyalty program that was created based on direct customer feedback. It provides a personalized in-store and online experience. Customers can either sign up online or in store at the Pro Desk to receive members-only benefits, offers and perks. The Home Depot offers perks like reserved parking, dedicated checkout lanes, two-hour turnaround on orders, an expanded selection, exclusive discounts, and reduced pricing on orders over $1,500.
Members can unlock their rewards simply by making purchases at The Home Depot, in store or online. Every dollar they spend gets them closer to different perks. Plus, they also receive bonus perks like free drinks and snacks. They can even track their progress through The Home Depot Mobile App or by scanning their Virtual ID when checking out to see how far they have come and how close they are to their next perk.
Verified businesses also have access to the Pro Online Experience, which provides expanded online tools to help manage and grow their business, in addition to all the benefits of the Pro Xtra Loyalty Program. Members can view their purchase history, save multiple lists for fast reorder, create, save and print quotes, see all purchases with a business dashboard, and more.
Why it works
- The Home Depot is very specific about who this program serves and what the benefits are. This helps to ensure that the right subset of customers enroll in the program.
- The program is very transparent about customer progress and how close members are to their next benefit. This approach is informative and motivating, encouraging members to make their next purchase.
- Quick re-order is a useful B2B tool that can be incorporated into a loyalty program or mobile app with ease.
Enrollment – A Straightforward Process
When signing up for Home Depot’s loyalty program, customers have two options to choose from: they can either create a personal account or a Pro Xtra Account, depending on whether they are shopping for themselves or making purchases for their business. Upon creating a Pro Xtra Account, professionals need to provide basic information such as email address, company name and address. Still, the overall process is fairly standard and quick.
After joining the loyalty program, members are provided with several options. For instance, they are able to store their credit cards and save time during checkout or view in-store purchases made with their saved cards.
Members also have the option to use their Home Depot Credit card, which they can link to their account. Their account allows them to set up an address book with multiple shipping addresses, so they only need to choose the most convenient for them when shopping online. Or, with the help of instant checkout, customers can buy items in just one step.
Point Accrual – Make a Purchase, Gain a Perk
Pro Xtra is very much a transaction-focused program, with not much room for soft actions. It provides discounts to members who make purchases at The Home Depot stores and on their website. The extent of the discount they receive is determined by their membership level. Customers only receive perks when they spend money. The more they spend, the more discounts they get.
Although soft actions, such as writing reviews, friend referrals and social media posts, do not involve purchases, they still provide value. By rewarding non-transactional activities as well you encourage loyalty by showing customers that you appreciate their engagement, even when they aren’t spending money.
There is also a $1,500 order limit which members have to exceed in order to get reduced pricing with the retailer’s Volume Pricing Program (VPP). With the help of the VPP members only need to assemble their project list for large orders and Pro associates will calculate the lowest price possible for them. In order to receive the discount applicable to their current membership level, members need to scan their Pro Xtra Virtual ID prior to completing a purchase.
Although The Home Depot’s loyalty program is essentially a perks-based program, the amount of discount is calculated according to a tiered structure. Other program benefits are provided to all members uniformly. So, in this sense, we can say that The Home Depot has a hybrid loyalty program. However, the company could benefit by providing higher-tier members with additional benefits, encouraging them to spend even more.
Why it works
- The Pro Xtra Virtual ID acts as a virtual loyalty card, helping Home Depot identify its customers and giving customers a convenient way to earn points and use their discounts.
- A hybrid loyalty program is a great way to mix and match multiple elements to create a program that suits your business strategy.
- In ProXtra, tiers and perks are combined. Every member gets perks, while tiers ensure that customers get a higher discount as they level up.
Rewards – Get Rewarded While Saving Time and Money
Members of The Home Depot’s loyalty program receive several benefits after joining. Exclusive offers and perks include:
- Dedicated support in store and online
- Tool Rental Perks, including the possibility to rent pro-quality equipment and tools
- Multiple shipping and fulfillment options
- Pro Xtra Dollars and digital reward cards
- Purchase tracking
- Pro Xtra Paint and savings on all paint
Another great benefit of the program is Text2Confirm Authorization, which makes it possible for employers to quickly authorize employee purchases via text. Plus, members receive personalized offers sent straight to them, like special coupons on products and services. Members who are verified professional customers also qualify for the Pro Online Experience and they receive additional, exclusive benefits.
In addition, eligible members receive better-than-shelf-pricing on select, in-stock items, owing to the Preferred Pricing sub-program. Plus, The Home Depot Skilled Labor Marketplace is a sub-program which provides members access to search profiles created by candidates available for work opportunities. Another one of Home Depot’s rewards is their Fuel Rewards program, which allows cents-per-gallon savings that customers earn by shopping at The Home Depot using their Home Depot Credit Card.
Why it works
- The program focuses on quality of life and work for its members, which is something that their target audience can appreciate.
- Personalized offers ensure better engagement than generalized offers.
- Sub-programs and member clubs like the Skilled Labor Marketplace are a great way to further segment your audience based on product preferences and interests.
Mobile App – Customers Have a Home Depot Store Associate in Their Pocket
Customers can take advantage of the benefits of being a Pro Xtra member via The Home Depot Mobile App, which was ranked No.1 in a study by Forrester due to its functionality and strong user experience. The application helps customers save time, money, stay organized and better understand the loyalty program. It also provides convenience for home-improvement professionals and fosters stronger brand loyalty.
The application helps customers find what they need fast with the help of image and voice search. Members can use the barcode reader to scan an item and read what other customers had to say about it. The app also helps customers locate the products with superb in-store visual item mapping, check inventory, or receive guidance on checkout steps. Another great feature is the true-to-life 3D visual that customers can use to visualize their selected item, and see how it will look, feel and fit.
Why it works
- A mobile app provides convenience, especially in the case of professionals who have the need to shop and interact with Home Depot frequently.
- Home Depot knows its audience. Busy pros want to save time and have everything in one place. Putting product search, the loyalty program, a virtual customer ID, and linking the Home Depot credit card to the program means the app is a one-stop-shop for customer needs.
The value of the Home Depot’s loyalty program lies in the benefits that they provide for customers who shop in bulk and buy often. The Pro Xtra Account has many practical features that can help members out with their projects. The option to link cards to their account, call-ahead ordering and the purchase history facilitate the checkout process. Meanwhile, other elements, such as the mobile application and various pricing programs, help members save time and money.
Overall, The Home Depot rewards program is a simple but great loyalty program combining perks and tiers. The only disadvantage is that customers who purchase occasionally, and in small quantities, cannot really utilize the program to the fullest.
In case you need assistance in deciding which loyalty program is the best for your organization, our experts are more than happy to discuss the possibilities. Feel free to include us in your RFP or contact us directly.
Meanwhile, to get inspiration for your company’s loyalty program, download our concept worksheet, which will help you explore the elements of the different programs and provide you with handy ideas.
Barbara is a Loyalty Program Specialist at Antavo and a Certified Loyalty Marketing Professional - CLMP. She is also a writing expert with several years of experience in marketing and also in the information technology industry. In her free time she likes traveling the world, reading crime stories, and doing crossword puzzles.