As Fleet Feet discovered, optimizing a loyalty program doesn’t require a full overhaul, just smarter strategy and a clearer understanding of customer value. But many brands struggle with outdated program structures, high funding rates, and generic benefits that fail to engage customers.
Fleet Feet, a well-loved local running brand known for personalized service and community engagement, faced similar challenges. Their loyalty program was popular but expensive to maintain, and stakeholders needed stronger proof of its value.
By partnering with Baesman, Fleet Feet transformed its loyalty program into a more sustainable, high-performing engine for customer engagement and incremental sales.
The Challenge: A Popular but Costly Loyalty Program
Fleet Feet’s loyalty members drove almost all their sales, an impressive indicator of loyalty strength. But behind the scenes, the program had critical issues:
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High funding rate: The program was expensive to operate and difficult to scale.
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Undifferentiated benefits: Perks didn’t stand apart from competitors offering deeper discounts and richer loyalty experiences.
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Lack of internal clarity: Some stakeholders struggled to connect the program’s cost to its impact on the business.
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Need for validation: Fleet Feet had a redesign concept but needed data-driven insights before moving forward.
This combination made it clear: the program needed a strategic revamp.
Our Approach: Data-Driven Loyalty Redesign
To guide Fleet Feet toward a more effective loyalty strategy, Baesman conducted a comprehensive customer and financial evaluation.
1. In-Depth Spend Distribution Analysis
Our analytics team dug into member spend patterns to understand:
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How revenue was distributed across customer segments
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Which customer types were over- or under-incentivized
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Where the funding model was losing efficiency
This analysis revealed opportunities to realign rewards with customer value.
2. Competitor Benchmarking
We evaluated loyalty programs across the running, sporting goods, and specialty retail space to identify gaps and advantage areas.
3. Tiered Program Design
Using the insights above, we developed a tiered structure that:
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Reduced overall program funding
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Reallocated investment toward benefits proven to drive more engagement
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Added differentiation for top-value customers
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Strengthened brand affinity without relying solely on discounts
The result? A program that rewards customers in a smarter, financially efficient way.
The Results: Lower Costs, Higher Engagement, Stronger Loyalty
Fleet Feet’s redesigned program not only solved their initial challenges, it surpassed expectations.
Key Outcomes
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Lower funding rate - A more sustainable, profitable loyalty model
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New, high-value benefits - Increased customer engagement and satisfaction
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Successful relaunch - Achieved all KPI goals
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Improved customer sentiment - Members felt more valued and more connected
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Incremental sales lift - Driven by smarter benefit design and tier incentives
It’s a perfect example of how data-backed loyalty strategy can simultaneously contain costs and boost performance.
Opportunities for Brands: Where Loyalty Goes Next
Fleet Feet’s success underscores a key takeaway for any brand with a loyalty program: even small structural changes can unlock major gains in both cost efficiency and customer engagement.
Rethinking program design. Many retailers are finding that tiered or rebalanced program structures create a more sustainable funding model while giving high-value customers the recognition they expect. When backed by strong data, this type of refinement can drive meaningful behavior shifts without increasing spend.
Using customer insights more intentionally. A deeper look at customer value distribution often reveals opportunities to strengthen rewards where they matter most. Brands that invest in understanding these patterns tend to build programs that feel fair, motivating, and aligned with real customer behavior.
Refreshing benefits to feel more modern. Today’s customers expect more than discounts alone. Experiences, exclusivity, and community-driven perks help elevate the emotional connection, making the program feel like a true extension of the brand.
Supporting the relaunch thoughtfully. Whether you’re tweaking benefits or overhauling your structure, a clear and coordinated communication plan ensures customers quickly see the value. A strong rollout can make all the difference in adoption and sentiment.
Continuing to refine. The most successful programs evolve over time. Ongoing measurement and optimization keep funding rates healthy and benefits relevant, ensuring your loyalty strategy grows with your customers.
Ready to Transform Your Loyalty Program?
Whether you need a full program redesign, deeper customer analytics, or help determining the true value of your loyalty members, Baesman can guide you from strategy through execution.
Let’s build a loyalty program that works smarter, not harder.
