Dive Brief:

• Foxtrot Market, the urban convenience store chain, launched a two-tier loyalty program called “Membership” that offers perks like free drinks and snacks, exclusive merchandise, early access to products and free delivery.
• Shoppers are eligible to become a “Member” after they place an online order, either for pickup or delivery, and can join the “Member+” tier if they spend $100 during a month’s period. Member+ benefits run for the rest of the month in which they hit the spending minimum plus the month after that.
• Membership signup and benefits are all available through Foxtrot’s app, highlighting the importance of that tool in driving in-store and online purchases.

Dive Insight:

Foxtrot’s new membership program, which replaces its previous loyalty program, Perks, is notable for the wide variety of benefits it offers and for the way everything centers on the company’s app.

The program incorporates elements of a traditional loyalty program with the exclusiveness of a membership initiative like Walmart+ or Amazon Prime. Shoppers who join Foxtrot’s Member tier get a free cafe drink each month, an early look at new products, free gourmet popcorn, happy hour pricing at in-store bars, exclusive merchandise and access to a special “Members Only Aisle.”

Those who reach Member+ status unlock special pricing, $1 coffee and tea, $3 cafe drinks, $10 house wines, free delivery, free gift wrap and access to exclusive products. 

The program is a way for Foxtrot to encourage regular visits from shoppers, both online and in stores, while also nudging them to become super users of the upscale chain. Although Member+ access requires shoppers to regularly spend upwards of $100 per month at Foxtrot, the Member tier only needs to be unlocked once for shoppers to use it for life.

“Membership is always being the first to know. Membership is always getting the best price,” the company stated in an email to customers on Tuesday. “Membership is a cafe drink on us, and discovering the rare and exclusive gems in our inventory we reserved for you. And it’s all in the app.”

Foxtrot isn’t the only chain that’s revamping its loyalty offerings as consumers increasingly shop online and in stores. Convenience store chains like Wawa are tying fuel rewards and other perks to their apps, while grocers like Kroger and Albertsons have launched e-commerce membership programs offering benefits like free delivery. 

Founded in 2013 as a delivery service, Foxtrot has stores in Chicago; Dallas; Washington, D.C.; and Alexandria, Virginia, that offer fresh meals, drinks, local products and an atmosphere where shoppers are invited to hang out. The Foxtrot app lets users browse products, place online orders and pay for products in-store. 

During a session at the Groceryshop conference in Las Vegas last week, Foxtrot co-founder and CEO Mike LaVitola said the chain offers delivery in under an hour and gets about half of its sales online and the other half in stores. He said the company’s app allows it to collect valuable data on shoppers — a capability that could get supercharged under its new app-centered membership program.

“We have a real deep understanding of what our customers are into because most of our customers, even in the stores, are shopping with their phones,” said LaVitola.