Dive Brief:
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Under Armour on Monday launched its first loyalty program, free to U.S. customers 16 and older, according to a company press release Tuesday.
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"UA Rewards" is available online, via mobile app and at Under Armour Brand House and Factory House stores. It will roll out in Under Armour retail stores later this year.
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Members earn five points for each $1 spent, (10 on the first purchase of their birthday month), and can earn points for completed challenges on the brand’s fitness app. They’re also privy to early access to new merchandise, special events, and exclusive videos featuring Under Armour athletes and fitness experts.
Dive Insight:
Under Armour, which has been struggling to catch up to powerhouse rivals Nike and Adidas, is late to the loyalty game. Nike in particular offers a variety of programming for different customer segments, including its holistic, wellness-focused “Well Collective” and sneakerhead-friendly “SNKRS Pass.”
Staunch Under Armour customers have wanted to see perks for their loyalty, Under Armour CEO Stephanie Linnartz suggested in a statement.
“Our consumers are incredibly engaged with our brand and UA Rewards will enable a deeper connection, delivering the value and benefits they've been craving," she said.
Linnartz arrived from Marriott in February, and in June shook up the company’s C-suite and cut 50 corporate positions across “several functions.” Wells Fargo analysts Will Gaertner and Ike Boruchow that month said that Linnartz’s tenure so far has been positive. But they also noted her lack of experience in apparel and pointed out that “she has a difficult task to return UAA back to its former glory.”
“We credit Linnartz for recognizing the challenges & outlining ways to course correct,” they said. “However, we believe the changes that she spoke to including improving product flow, innovation, segmentation, will take time to bear fruit. Further, while her track record at Marriott was impressive, she remains unproven in the apparel/footwear space.”
