Etsy is planning to launch a loyalty program to get people to think of Etsy more often when shopping. Etsy CEO Josh Silverman spilled the news during Wednesday’s earnings call with Wall Street analysts.
“We’ve got a portfolio of compelling initiatives lined up designed to move the needle on consideration and frequency,” Silverman said. “In addition to Gift Mode,… we’re also hard at work researching options for a buyer loyalty program to give buyers explicit reasons to come back and shop more often.”
In response to a question from an analyst toward the end of the call, Silverman said he didn’t have anything to announce yet, but said Etsy pays a lot of attention to loyalty economics. He said he had a lot of time to study loyalty programs during his time at American Express, which ran membership rewards and also partnered with companies such as Delta and Starwood.
“The goal is to get people to consider Etsy more often,” he said, adding that he thinks getting people to commit to some form of loyalty program can get them to prioritize Etsy and get them to say, “Oh, I’m in this loyalty program, I should stop by Etsy and see if they have something to offer.”
Etsy included slides in its presentation to analysts that showed Etsy was planning to launch some bold ‘Vital Few’ initiatives in 2024 and beyond in order to “gain share and drive Consideration and Frequency.” In a graphic on the following slide, Etsy displayed the following:
Consideration
Get buyers to think of Etsy more often:
Gift Mode(TM) + Loyalty Program
While Etsy reported what it called “modestly lower” Gross Merchandise Sales in the 4th quarter, it said Etsy Ads, Payments, and higher Offsite Ads revenue drove “healthy” revenue growth for the company in the quarter.
