The My New Balance Rewards Program is being phased out. There isn’t currently a notification of the replacement program, or if there will ever be one implemented. This isn’t a major issue as loyalty programs are often utilized for head of the line privileges or opportunities to gain discounts on product and most individuals and families aren’t shopping on the NB site. One of the most difficult tasks in marketing is the ability to get a customer to log-in if they have the option to check-out as a guest. This is a completely different discussion which requires analysis.
New Balance is often celebrated as a brand who caters to specialty retail and small stores who offer comfort services. These stores thrive on a demographic that is older, or a customer who is looking for function over fashion. In the last few years, New Balance has launched more collabs with designers and brands. Those collabs have generated considerable heat for New Balance leading to a higher profile with the celebrated sneaker enthusiast. NB has always worked with stores like Concepts or even websites like Nice Kicks in the past, but those drops seemed like research. The core of the business was always comfort and running. The removal of the rewards program could be a signal that New Balance is seeing considerable sell through at SRP and the company doesn’t have to lean heavily on customer rewards programs. When you take a moment to consider drops with No Vacancy via StockX’s IPO:
The StockX New Balance 650 x No Vacancy Inn IPO and Why It’s a Dangerously Brilliant Harbinger
and you look at collabs with Bricks & Wood, and the alignment with Teddy Santis as Creative Director of MADE, it signals a shift to fashion over function. That isn’t a good or bad thing, it’s just different. However, when long time customers who have helped the business, begin feeling abandoned the question has to be raised, is The New Balance unbalanced? A quote from the team at Chiappetta’s Shoes in Wisconsin allows for this discussion to be held:
Building D2C and with the youth is about the only damn thing they’re doing right now… damn near a complete abandonment of the independent/comfort/size-and-fit channel… so ridiculous.
It’s not a secret that sneaker obsessed fans purchase multiple pair per year, while comfort customers stick with one pair and then they may purchase orthotics, but the Chiappetta customer, will purchase premium priced at SRP for the function, but not typically multiple times per year. This doesn’t diminish the quality of that consumer. A consumer taking the time to be fitted for orthotics can be moved to alternative brands. A customer who buys a new brand, functions like a sneakerhead. They tend to buy and gift more of the new style. Familiarity has to be funded as equally as acquiring new customers or catering to a younger, fashion forward demographic.
I recently visited a New Balance location and found an entire section dedicated to Kawhi’s basketball sneakers and lifestyle options. The store is basically a comfort/running store. The owners know that business. They are horrible at engaging with a customer looking at the basketball and lifestyle options. When the franchise is receiving more lifestyle options without any real insight into capturing the sneaker enthusiast that’s a problem. Fashion and luxury are trending and leaning in doesn’t require complete commitment. A runner leans at the end of the race, after they’ve maintained a consistent pace throughout and they kick. Is New Balance leaning too much?