FedEx is looking to give some shipping and other discounts to its loyal small business customers.
The company has extended the participation eligibility in its FedEx rewards program. FedEx says that small businesses can earn shipping and printing discounts, receive exclusive offers. They can also be eligible to earn rewards like gift cards to popular restaurants or for popular websites, the company says.
Called MyFedExAwards, the program now includes all FedEx small business customers that print or ship with the company. The company says the program’s expanded eligibility will mean many more small businesses using FedEx services will be able to take advantage. The expanded program adds to a suite of services for small business in the company’s Solutions that Work for Small Businesses.
Included in these services, Small businesses that ship with FedEx can receive a special, more predictable payment plan, called OneRate. The company also offers a FedEx Delivery Manager app that allows small businesses to arrange for package pick-ups and drop-offs at their home address.
FedEx clearly hopes the expanded rewards program will convince more small businesses to become repeat customers for its shipping and other business services. In an official announcement of the new expanded rewards program on the company’s website, Vice president of customer engagement at FedEx Becky Huling said:
“Building long-term relationships with our customers is embedded in the FedEx culture. My FedEx Rewards offers real benefits to our small business customers through special offers and rewards, and we are excited to deepen these important relationships.”
Signing up for the FedEx Rewards loyalty program is free. And while small businesses are accruing rewards to be applied to other offers from FedEx, shipping is discounted immediately on many packages.
For example, small businesses can realize 16 percent off FedEx Express packages and 8 percent off FedEx Ground shipping. The company is also offering 10 percent discounts on FedEx Office purchases and 60 percent off FedEx Freight packages all just for signing up for the loyalty program.
FedEx says loyalty members will also receive exclusive deals on more FedEx shipping and printing services.
The expansion of the rewards program with its shipping discounts couldn’t come at a better time for small businesses. The announcement comes just two months after FedEx and UPS announced a new formula for shipping packages. Rather than a base price for a package’s weight, the new formula also considers a packages”dimensional weight” accounting for the space it takes up on a shipping vehicle.
The change has resulted in a higher shipping costs for some small businesses.
I think that it is a good strategy. It is a way of nurturing existing customers so that they will be more likely to use their services. Other small business owners can learn from their example.