Sugarfina is a luxury confectionary brand known for its sweet treats. Founded in 2012, the brand has since established itself as a leader in the confectionery industry. Sugarfina’s products are available both online and in-store at select retailers. Furthemore, Sugarfina products have been featured in magazines such as Vogue, Vanity Fair, and The New York Times.
Sugarfina launched its loyalty program, called Sugarfina Rewards, in October 2015.
Sugarfina Rewards is a free loyalty program that offers customers the opportunity to earn points on every online and in-store purchase. Points can then be redeemed for exclusive rewards from the Sugarfina Rewards store, such as free candy, as well as novelty items and gift cards.
How to join Sugarfina Rewards
To join the Sugarfina Rewards program, customers simply create an account on the Sugarfina website, and they will start earning points for every purchase.
How to earn
Members earn 1 point for every $1 spent, online and in-store.
Members can earn bonus points (unspecified by Sugarfina) for making two transactions within 60 days.
In addition to earning points for purchases, customers can also earn points for referring friends to the Sugarfina Rewards program. When a friend signs up for the program using a customer’s referral link, the member earns 100 points, and their friend will earn 20% off their first purchase of $50+.
Furthermore, there are gamification aspects of the program which reward points for completing non-transactional behaviours which include:
- Completing Surveys
- Setting up Sugarfina Gift Reminders (Add event reminders to your account (birthdays, anniversaries, etc.)
- Referring a Friend (as mentioned previously)
- Following @Sugarfina on social media
- Posting and hash tagging #Sugarfina on social media
How to redeem
Redemptions are made online or at Sugarfina boutiques.
The easiest way to redeem is online by signing into a Sugarfina Rewards account, clicking on the ‘Rewards’ tab, and then choosing the reward desired to redeem.
The rewards store is updated every month, with rewards ranging from 50-1000 points.
Sweet, sweet tiers??
Weaved into the loyalty program are four tiers: Taster, Member, VIP, and Sweet Elite. Members progress and regress through tiers dependant on their annual spend at Sugarfina.
Each tier comes with specific benefits – encouraging members to spend more in order to receive additional benefits.
- Taster is the entry-level tier. To qualify, members must spend $0-$249 in a calendar year. As a Taster, members receive 50 points as a birthday reward.
- Member is the next tier. To qualify, members must spend $250-$499 in a calendar year. Members receive 125 points as a birthday reward, and early access to new products.
- VIP is the third tier. To qualify, members must spend $500-$1,499 in a calendar year. VIPs receive 300 points as a birthday reward, early access to new products, and receive 2x bonus points offers periodically.
- Sweet Elite is the top tier. To qualify, members must spend $1,500 or more in a calendar year. As a Sweet Elite, members receive 500 points as a birthday reward, early access to new products, 2x-3x bonus points offers periodically. Furthermore, they are invited to attend exclusive Sweet Elite Sugarfina member events.
Members can track their progress and see which tier they qualify for on the Sugarfina website.
Sugarfina Rewards members are also sent special offers and promotions on an ad-hoc basis, regardless of tier, such as discounts on specific products or free shipping on orders over a certain amount.
Is Sugarfina Rewards a Sweet (or Sour) deal?
On the positive side, the Sugarfina Rewards program offers a simple and straightforward way to earn rewards. Members earn 50 points simply by signing up and completing their profile which is enough to redeem a reward, allowing members to unlock value immediately. Additionally, the generous referral benefit entices member advocacy.
Furthermore, the overall user experience is solid. Gamification elements are easy to complete, reward redemption is flexible and accessible, and the member account communicates all loyalty-related elements in a user-friendly format.
However, the inclusion of the tiers framework is questionable – at least in its current form. While tiers may incentivise higher spending for a subset of customers, the benefits associated with each tier may not provide significant value to positively influence most customers. For example, the decision to keep Bonus Point Events for only the top tiers removes Sugarfina’s overall ability to stimulate base and second tier customers to spend incrementally via targeted offers.
Efficient rewards and the ability to create a sense of exclusivity (aka make people feel special) are key factors for the successful implementation of tier programs. However, Sugarfina’s current tier benefits do not exhibit this, despite being within an industry (confectionary) that is often characterised by high margins. It is recommended Sugarfina refocus benefits to better leverage their unique position.
A bittersweet end
In conclusion, the Sugarfina Rewards program offers simplicity, the opportunity to earn rewards easily and genuine value. However, the inclusion of tiers and associated benefits is questionable based on the current design. The program could benefit from further evaluation and potential adjustments to ensure that all members, regardless of tier, feel adequately rewarded for their loyalty to the brand, and to ensure the brand is getting the most out of their program. Reaching out to customer loyalty consultants would help the program grow to new heights.
