Dick's Sporting Goods ScoreCard Rewards

Jul 5, 2011Back to Articles

When I was a kid, I can't count the number of times my parents took me to Dick's.  That is of course, Dick's Sporting Goods, 347 Court Street in Binghamton, NY.  What's the relevance with that address? It was DSG's first and only store for decades — owned and operated by Mr. Dick Stack, and started as a bait and tackle shop in the late 1940's.  His entrepreneurial-minded children eventually took over the business, brought the company public (NYSE: DKS), and now there's over 300 locations.

The ScoreCard Rewards Program is fairly rich program for any sports enthusiast.  I say fairly because it takes $300 in spending to receive a $10.00 Rewards Certificate (sent to you automatically by US Postal Mail).  What's the problem with the value proposition? DSG's has coupons in the marketplace for example, offering $10 off a $50 or more purchase.  Needing to rack up $300 in purchases should provide far greater value than you'd receive from a coupon. I also question DSG business decision in mailing rewards certificates to its rewards earners.  Although there are clear advantages (yes, still) with direct mail, the cost of print and mail clearly conflict with the advantages of in-store redemption.  Offering a real-time reward a the point-of-sale (POS) is the holy grail for any retail rewards program.  Offering a POS reward would be equivalent to watching the price drop at the pump for a fuel reward.  DSG should consider real-time redemption as a future enhancement.  The development to do so will be worth the investment, and it will score higher points with its rewards members.