Retail - General/Department Store

US: American Eagle Outfitters launches new loyalty program

American Eagle Outfitters launches new loyalty programAnother week, another new retail loyalty program launch: Last week, specialty apparel retailer American Eagle Outfitters, Inc. (AEO) announced the launch of a redesigned digital loyalty program called AEO Connected.  The program will be rolled out to AEO’s current 16 million rewards members, and it’s already paying dividends – in advance of the impending program relaunch, stock analysts have become bullish on AEO stock.

By Wise Marketer Staff

The new highly-digitized loyalty program serving all American Eagle and Aerie customers. Over 16 million current rewards members were immediately converted to AEO Connected, where they enjoy will enjoy “greater convenience, more rewards and an enhanced customer experience,” according to the company press release. Money quote from AEO Chief Marketing Officer Kyle Andrew:

“Staying connected to our customers is at the core of everything we do, so we are excited to offer a unique program to attract new members and build on the strength of our brands, while highlighting our leading product categories, AE jeans and Aerie bras. AEO Connected rewards brand advocates and encourages greater customer engagement, beyond just transactional. The new platform provides flexibility to evolve with the changing needs of our customers and supports upgraded features such as greater personalization, enabling us to provide a truly special customer experience.”

AEO Connected Highlights include:

  • Upgraded rewards for our best customers and brand advocates
  • Full integration with AE and Aerie’s branded credit cards
  • Special perks for purchasing key items, jeans and bras
  • Exclusive member access to concerts, festivals and special events

Joining AEO Connected is free and can be done in stores, on the AEO mobile app or online. Customers are instantly awarded 500 points upon signing up, and begin earning rewards immediately. AEO Connected also offers enhanced perks for AE and aerie branded credit card customers, including free standard shipping and faster rewards.

As we noted above, the move has already prompted positive reactions from the Street. Typical is this note from Zack Investment Research:

“American Eagle has outperformed the industry in the past three months driven by positive sentiment for second-quarter fiscal 2017, since reporting a dismal first-quarter. The company lived up to expectations with both the top and bottom line beating estimates in the second quarter. While the quarter marked second straight quarter of sales beat, earnings topped estimates after a miss in the last quarter. The company also posted 10th straight quarter of positive comps on the back of strong online sales at both brands driven by efficient use of omni-channel capabilities to enhance customer experience. Moreover, the company is optimistic about the second half of fiscal 2017, especially the fall season. It is also on track to launch the revamped loyalty program targeting to convert current customers and attract new ones.”

Best of luck to AEO and their new program – will be rooting for a positive customer response.

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