The mailer read:
Inside: New Benefits. New Rewards.
What it meant was:
Inside: Worse Benefits. Smaller Rewards.
DSW used to have a program called "Reward Your Style" that rewarded shoppers with a $25 certificate upon purchasing a total $250 worth of merchandise (value: 10%). (I actually thought it used to be $25 per $125 (value: 20%), but I have yet to confirm it.
The new program, DSW Rewards, assigns points to each purchase - 10/regular purchase dollar, 5/clearance dollar. $10 rewards are issued at 1500 points (equivalent to $150 [value: 6.7%], assuming regular purchases, or $300 [value: 3.3%], assuming clearance purchases). This represents a reduction in value of 33 to 67%!
Presumably to make up for the reduction in value per dollar spent on purchases made before the switch to the new rewards program (9/7/06), the conversion rate for past purchases seems to be higher than 10 points per dollar. For example, my current balance is $20, but that will be worth 300 (15 points/dollar) after conversion, according to their website.
The whole promotion of the new rewards program is sneaky. They've made it sound like an improvement, and worked hard to hide the details. From the mailer to the FAQ, the pertinent information was either not available, or masked. For example, where in the following explanation of "Why is it changing?" do they say anything about saving themselves money?
We replaced the old program (Reward Your Style) with DSW Rewardssm because of member suggestions. For example, many members told us it took too long to earn reward certificates; now it's possible to earn rewards faster.
One improvement, if you can call it that, is that they will have two double points days per year. They haven't announced when they'll be. Also note that double points translates to an increase of only 3.3% for regular purchases over the old program, and a decrease of 3.3% for clearance purchases!