The Home Depot rewards program: A successful loyalty case study

The Home Depot Rewards Program – A mirror of a successful program

The Home Depot is a retail company that sells home appliances, repair tools, construction tools, and many other services. It is the top 5 biggest US retailer for home improvement, with over 2,270 stores and 385,000 employees. The Home Depot rewards program is called Pro Xtra. It works to help clients save costs or manage cash flow and grow their own business

According to CSA News, in the release of the Pro Xtra, Mr.Molly Battin – senior vice president as known as Chief Marketing Officer, has shared that the loyalty system creates a new type of receiving rewards and savings for consumers with more perks than ever.

The Home Depot Pro – Why are they successful?

Clear benefits on the membership page

Clear and easy to understand are the first impressions on the Home Depot loyalty program website. The layout, design, and message are straightforward and explained step-by-step for the customers.
Even the newcomers can easily grasp all the information. “Save Time. Save Money. Get Rewarded” is a priority of the brand, which also shows how the company empathizes with its clients.

The main target of clear representation is to let customers get all the information right. Any visitors may see the advantages of The Home Depot Pro and eventually want to experience it for themselves due to the detailed information, vivid images, and clarity provided on the membership page. Home Depot gives 6 kinds of rewards: ProXtra Perks, Exclusive Offers, Paints Rewards, Volume Discounts, and Advanced Business Tools.

Customers increasingly want more out of their membership with gifts before purchasing to compare with other programs easily. Joining as a Professional Member of Home Depot, customers will be treated so special compared to others. It offers numerous benefits to members who continue to buy the brand’s items. 

A $20 discount is offered to new ProXtra members on any purchase of $200 or more as a welcome gift. Moreover, the members can learn more about ProXtra Business Tools such as the Virtual ID, rewards cards, and Home Depot Mobile app as a convenience while engaging with the brand.

ProXtra – Easy to follow rewards structure

Customers can experience personalized programs in-store and online by joining the Pro Xtra loyalty program. Plus, clients can sign up at the Pro Desk to receive offers and perks. Customers can receive rewards from Paint Rewards, Volume Discounts, and Advanced Business Tool with different membership levels. They can upgrade their membership level by spending more money on the brand. The program is divided into several levels depending on the reward categories. The Rewards Discounts category will have levels: Standard member, Bronze, Silver, and Gold.

The program positively expands member size

More discounts on money and percentage on points are recommended at a higher level. Or we can say that with the different amounts they spent, clients will earn the respective gifts. For instance, as a Gold membership above, you get 20% off when the customers reach $6,500; this is a big amount. However, the percentage is also very beneficial and an incentive to purchase. Besides, customers can take the perks such as drinks or snacks if they do not choose Home Depot offers.

Furthermore, on Jan 5^th 2023, Home Depot added 3 new tiers to its program to enhance the ProXtra loyalty program: Member, Elite, and VIP. This movement helped customers to enjoy more benefits than ever that keep spending on the brand. Customers may take advantage of exclusive specials and events both in-store and online, paint incentives, business tools to help manage and build their enterprises, and more when they sign up for Pro Xtra.

Sign-up process – Always welcome new members

Straightforward Guidance for newcomers

The Pro Xtra program is available on both online and offline platforms. To participate, customers need to register online at Home Depot’s website. The program also designs mobile applications (iOS/Android) to help customers shop at Home Depot more easily with different kinds of smartphone systems. When downloading the app and registering an account, customers have many conveniences provided by The Home Depot Team:

• Access the previous orders and the user manuals, warranty, and installation information.
• Link with the credit cards to the customer’s account to track purchases.
• Check out the products, The Home Depot system saves consumer data and suggests again each time they return.
• Save the favorites in the list, create a wish list, or specific stuff for the home project.
• Get saving opportunities and project ideas via e-mail, and control the type of communication.

Get saving opportunities and project ideas via e-mail, and control the type of communication.

This flexibility increases the customer experience while using Home Depot’s app, which has an account to search for their needs and makes a good impression on a simple process.

Understand how hard to get customers familiar with the program

Because of the understanding of how customers feel with a complicated enrollment process, Home Depot Pro provides a simple and easy process to register and enroll to be a member. Clients easily reach the program and collect gifts from the brand without any difficulty from the beginning. The simple process might give a better customer experience and fasten the pace of adopting and getting familiar with the program.

Decoding the earning system of the Home Depot rewards program

The earning rules

Pro Xtra is a transaction-focused program that provides discounts to members who make purchases at The Home Depot stores and on their websites. Also, the discount they receive is based on their membership level. Customers can receive gifts and benefits when they spend money on the Home Depot system. Although there are additional actions that do not involve purchases, such as writing reviews, friend referrals, and social media posts, they are still beneficial. These activities show that the brand respects customers and creates more opportunities to push customer engagement, even if consumers do not spend a dollar to do so.

Additionally, members must purchase a least $1,500 to take advantage of the retailer’s Volume Pricing Program (VPP) and receive discounted prices. For large orders, the customer only needs to put together their project list with the assistance of the VPP. Pro colleagues will do the rest, determining the best pricing for them. Before completing a transaction, members must scan their Virtual ID to get the discount that applies to their current membership level.

Real-world examples of Purchases and Corresponding Points Earned

Saving money on bulk purchases at Home Depot is crucial for small businesses, and the firm offers more than 4,000 products that qualify for bulk purchases. The greatest deals on bulk purchases of products like concrete, shingles, drywall, plywood, insulation, and so on may be found by using Home Depot’s loyalty program. 

For the above orders, if the business is at a membership level, it is really helpful. Since the ProXtra program is based on transactions to convert into gifts and offers. The more the business buys, the more benefits they earn, especially in quantity.

The list of rewards and ways to get them

The Home Depot Pro regularly organizes promotions and attractive offers to attract customers. Some popular promotions include:

• Special discounts: The Home Depot often offers special prices on products listed in the promotion catalog.
• Free shipping: Customers can enjoy free shipping when purchasing online from The Home Depot.
• Freebies: The Home Depot also offers freebies to customers who purchase certain products.

As mentioned above, Home Depot Rewards is a transactional-focused loyalty program, however, the perks and offers are divided into tiers – A tiered program. So the the ProXtra rewards is a mixed type of loyalty program while using various kinds of programs. The priority is the higher the membership level, the more beneficial perks push the spending, and increase customer retention.

Final thoughts

Throughout the whole article, the mixed type between Transactional-focus and tier loyalty programs attract millions of members. From the rewards Home Depot offers to the unique service customers cannot find from outside brands. 

The key points that keep both newcomers and old customers engaged with the brand through the Home Depot rewards program are quality products and valuable services following discounts. Following the Home Depot, it is hard to offer many exclusive services and products at a much lower price than others. Since your business might be a start-up unit or a small company, expanding brand awareness and making profits are the main missions. 

Hence, owning a big program like Home Depot is impossible, but running a program as effective as Home Depot Rewards is accessible with BON Loyalty. BON Loyalty Rewards and Referrals is a reliable loyalty program builder that creates loyalty programs for Shopify store owners. BON Loyalty aims to turn one-time buyers into repeat purchases. The main features are the Point Program Referral Program and VIP Tier. Let’s try out a 3-day free trial service to feel the differences with the Pros.

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