FedEx AMEA: Revamped loyalty program to skyrocket membership

With customers moving toward a digital-first experience across the globe, FedEx Asia Pacific and Middle East, India, South Africa (AMEA) saw a need to modernize its loyalty program, My FedEx Rewards. FedEx AMEA knew it also wanted to connect better with its small- and medium-sized businesses (SMBs). Many big, global clients receive discounts, but SMBs don’t have enough volume.

With all this in mind, the brand sought to evolve three areas of the program to better connect with these customers: increased personalization, improved user experience and an added focus on rewards.

For this initiative, the FedEx AMEA team sought a partnership that was aligned on the same strategic direction and goals. The brand decided to work with Epsilon, already a partner at a global level for several years, to conduct its loyalty program revamp. Lynn Tan, strategic marketing and demand generation lead for FedEx AMEA, says, “With Epsilon’s technical expertise as well as experience working on My FedEx Rewards globally, it was really a natural choice to work with Epsilon on this venture.”

Let’s look at FedEx’s process for the program revamp, the results and what other brands can learn from FedEx AMEA’s success.

The revamp process

The FedEx global rewards program based in the U.S. set a baseline for the FedEx AMEA team, and tested best practices were ready for adoption in the form of Epsilon’s PeopleCloud Loyalty solution and the program’s core reporting and metrics.

Taking into consideration market nuances in the region, Epsilon’s platform enabled customization to fit the revamped program mechanics, and localization of data attributes were needed to enable future data analytics. The platform also allowed seamless sign-on integration so that FedEx customers could easily enroll as members and engage with the program without the hassle of using yet another login credential.

FedEx AMEA also wanted to understand its customers beyond just their shipping profiles. The brand wanted to ensure it could customize the rewards that not only help small and medium-sized enterprises (SMEs) ship better with FedEx, but also find rewards for themselves or their teams beyond the standard shipping assistance.

The program results

The integration of FedEx’s CRM and marketing communications systems with Epsilon PeopleCloud Loyalty also made it possible to locate eligible members based on different revenue and behavior-based criteria. With the backend powered up, FedEx and Epsilon continued the program update by streamlining the front-end customer experience.

In keeping with the FedEx member acquisition strategy, the rewards catalog was more directly managed, and the points accrual structure made more aggressive.

In total, FedEx AMEA used the integrated data systems to identify 220,000-plus additional customers eligible for My FedEx Rewards, and to coordinate and track invitations. Within months, FedEx turned a slowdown into a revival. Says Tan, “New members have joined My FedEx Rewards at a rate unseen in many years.”

Tan shared that in 2021 alone, FedEx AMEA gained more than triple-digit percentage growth for their new membership base. And in terms of revenue, the brand observed double-digit percentage growth for members within the program itself.

Personalization and user experience matter most

In this digital-first environment, customers expect nothing less than personal, purposeful brand experiences with every interaction. So, it’s not surprising that when FedEx AMEA responded to the changing needs of its customer base, it began to see levels of engagement beyond any in the brand’s recent history.

“My FedEx Rewards aims to make every delivery rewarding,” Tan says. “We are committed to deliver seamless and highly personalized experiences that are fundamental to ensuring customer loyalty well into the future.”

To create long-lasting relationships with customers, marketers need to understand the importance of the value exchange in loyalty. When done right, it reinforces brand loyalty and deepens consumer trust.

This article was originally published on Adweek, November 2022.