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Ollie\u2019s Bargain Outlet<\/strong> is focused on creating value. But even though it\u2019s a discount retailer, it\u2019s thinking not just about financial <\/em>value but also experiential <\/em>value. That means providing customers with a treasure-hunt experience that gives them access to some of the best products from the best brands.<\/p>\n Across its 546 <\/strong>stores in the U.S., Ollie\u2019s offers close-out merchandise from the world\u2019s most reputable brands at 70% <\/strong>off retail price. With the tagline, \u201cGood stuff cheap,\u201d \u201cWe believe we\u2019re selling highly branded products at very deep discounts, and our customers have come to love us for that,\u201d said Tom Kuypers, Ollie\u2019s SVP of Marketing in an interview with Retail TouchPoints. <\/em>\u201cWhether it\u2019s in times of inflation or when the economy is doing well, everybody <\/em>wants to get the best deal possible.\u201d<\/p>\n However, the retailer\u2019s new branded credit card is bringing value creation to the next level, thereby boosting new customer acquisition and retention rates.<\/p>\n The Ollie\u2019s Credit Card is an extension of the retailer\u2019s broader loyalty program, called Ollie\u2019s Army. In addition to receiving the core benefits of the loyalty program, cardmembers can earn points wherever and whenever they make a purchase using the Ollie\u2019s Credit Card, which is anywhere Visa cards are accepted. Additionally, and perhaps more importantly, the card is accessible to a broader customer base, including those with lower credit scores, so they can easily purchase high-ticket items such as mattresses, air conditioners and other electronics, boosting overall conversion rates and basket sizes. <\/p>\n \u201cWe wanted the Ollie\u2019s Credit Card to be packed with value for our customers and be so much more than the typical retail store card,\u201d Kuypers explained. \u201cI\u2019m proud to say that this card has the right features and functionality, an easy digital application and industry-high approvals, and no fees.\u201d<\/p>\n Ollie\u2019s worked with Sunbit to launch the card within months \u2014 and without any POS integration requirements. Sunbit\u2019s team handles the deployment, support, training and customer care tied to the card, according to Kuypers, \u201cwhich reduces the potential complexity of the rollout and saves significant time and money. Our teams will keep doing what they do best, serving our customers.\u201d<\/p>\n In previous roles at companies like Bed Bath & Beyond, Kuypers helped launch several branded credit cards, and he found that Sunbit brings \u201ca lot more value to the table,\u201d he said. \u201cWe can go and approve people at a [lower] FICO score,\u201d which allows the retailer to offer credit to a larger pool of customers. \u201cOur approval rates are exceptionally high, which was important to us. We didn\u2019t want to turn a lot of customers down.\u201d<\/p>\n Ollie\u2019s is taking a phased approach to rolling out the credit card in stores. The process launched in August 2024, and in early October, the company took a brief hiatus \u201cto regroup and see how the first phase of the launch went so we could come back and launch another group of stores,\u201d Kuypers said. \u201cOur process was launching slow and bringing it to market so we could understand customer value.\u201d<\/p>\n It is still early days for the credit card program, so Kuypers didn\u2019t share any firm metrics of success just yet. However, \u201cwe believe we\u2019ll see a higher average transaction, and we would like to see more frequency from the customer, a higher ticket and higher frequency,\u201d he said \u201cOnce we see that, we\u2019ll continue to build the program from there.\u201d<\/p>\n Kuypers believes that marketing in retail is relatively simple and boils down to two<\/strong> main goals: creating new customers and bringing them back to buy again. The Ollie\u2019s Army loyalty program was designed to drive the retention element on a more regular basis.<\/p>\n With nearly 15 million <\/strong>members, Ollie\u2019s Army has three<\/strong> distinct tiers: 1 Star General, 2 Star General and 3 Star General, all based on the amount of money a customer spends. Like many retail loyalty programs, Ollie\u2019s Army offers one point for each dollar spent. As customers move up the ranks, they see more benefits, from steeper discounts to exclusive deals and access to Ollie\u2019s Army Night, an annual members-only shopping event. Once program members hit 250 <\/strong>points, they receive a 10% <\/strong>discount reward certificate redeemable at any Ollie\u2019s store.<\/p>\n The Ollie\u2019s team is focused on creating \u201cmore stickiness with the customer, so once you come into Ollie\u2019s and experience the value, you join the program so we can continue to offer you more value,\u201d Kuypers explained. That means exploring more ways to add value to the program. By mid-2025, all Ollie\u2019s stores are expected to have the card implemented, which will allow the retailer\u2019s marketing team to more extensively communicate the value the credit card is providing to customers.<\/p>\n \u201cValue is different for different people, but our version of value is bringing products at discount prices,\u201d Kuypers said. \u201cRegardless of how we acquire them, we believe we\u2019re selling our products at prices that are lower than anyone else in the marketplace. That\u2019s an amazing place for a marketer to come from. I know that the claims we\u2019re making are real and that we are offering great value to our customers every day, and our loyalty program obviously enhances that value.\u201d<\/p>\n To create new customers, Ollie\u2019s will continue to leverage print, sending preapproval mailers, and enhance its digital marketing, especially as it aims to target younger and more affluent customers. \u201cThey\u2019re a little different than our primary core, but from the messaging perspective, we\u2019ve continued to home in on value and continue to do exactly what we\u2019ve always done,\u201d Kuypers said. \u201cIt\u2019ll be a holistic, multi-touch marketing program once we\u2019re fully rolled out.\u201d<\/p>\n<\/p><\/div>\nUsing Credit to Drive Conversion<\/strong><\/h3>\n
Bolstering Ollie\u2019s Army \u00a0\u00a0<\/strong><\/h3>\n
When customers sign up for the Ollie\u2019s Credit Card, they immediately receive $10<\/strong> off their first purchase in the form of a statement credit. Cardmembers get additional \u201caccelerator points\u201d if they\u2019re members of Ollie\u2019s Army, so they earn 50% <\/strong>more points for every dollar spent. Additionally, cardmembers earn a point for every $2 <\/strong>spent outside of Ollie\u2019s.<\/p>\nBuilding the Value Story<\/strong><\/h3>\n