DSW's E-zine Way to Loyalty

Shoe retailer DSW Inc. is using a monthly e-newsletter to connect with its 4.5 million active loyalty program members.

“In the past, we've done a traditional monthly e-mail with one message and no real call to action,” said director of customer marketing David Sims. “Now we're using some pretty nifty dynamic content.”

The newsletters are sent to those who participate in the 200-plus store chain's Reward Your Style loyalty program and opted in to receive e-mail. Members earn a $25 reward certificate for every $250 they spend.

The topic and target audience are naturals, according to Sims. After all, most women have a little Carrie Bradshaw — Sarah Jessica Parker's character in “Sex and the City” — in their genetic makeup.

“At the end of the day it's women and shoes,” he theorized. “If you can't run a good loyalty program that involves women and shoes, you shouldn't be in the loyalty program business.”

Data such as customers' point balances and which store is the closest to their home is used to segment the company's database in various ways. Although the newsletter shell remains the same, e-mail vendor ExactTarget offers different content to different segments.

“We're trying to drive personalized, relevant and timely communications,” Sims said. “So if my closest store is in Buckhead, Atlanta, I've got 229 points and I bought a gift card over the holiday, I'll get a different e-mail than someone in Columbus, Ohio.”

DSW segments its loyalty program into 4.5 million active and 7 million inactive members. Actives made a purchase within the last 12 months.

Sims has created some win-backs that target inactives. But with such a large active mailing list, budgetary considerations dictate that DSW focus on engaging that group.

Sims is tracking which members received the newsletter; open and clickthrough rates; and if recipients ended up shopping during a given promotional period.