Tractor Supply cultivates loyalty
Year after year, Tractor Supply ranks well in terms of customer service, loyalty and overall experience. With 2,296 stores in 49 states (hang in there, Alaska), how does the rural retailer manage to consistently keep a diverse array of shoppers happy while bolstering its brand?
A robust, well-planned rewards program plays a key role.
Neil Tenzer, Tractor Supply’s VP of customer loyalty, insights and engagement, shares key insights below.
Q: What's the strategy behind Tractor Supply's rewards and loyalty programs?
Tenzer: Tractor Supply’s Neighbor’s Club has more than 38 million members, making it one of the largest and fastest growing customer loyalty programs in retail.
The Neighbor’s Club program is a three-tiered loyalty program that is designed with a customer-first mindset. Our customers consistently tell us that they view Tractor Supply as their partner, a dependable supplier for "out here" lifestyle solutions at everyday low prices. So, as good partners we provide our loyal customers with points redeemable for savings along with free shipping and delivery benefits, free trailer rentals, birthday gifts and member-exclusive offers.
In June 2024, we launched Hometown Heroes, a special Neighbor’s Club benefit that recognizes military service members, veterans and first responders every day by automatically elevating them to our highest tier of membership–Preferred Plus. With the data our customers share with Tractor Supply, we are able to better inform where we locate our stores, how we stock our shelves and how we reach our customers to provide them with great value.
Q: Which customers are you most trying to reach?
Tenzer: We serve customers who embrace the "Life Out Here" lifestyle, and that includes everyone from our rural and suburban homeowners, to pet and animal owners, to farmers and ranchers with larger properties.
While these core customers remain at the heart of our business, we’ve also seen significant growth among hobby farmers who are growing their food and flocks – now 1 in 5 customers own chickens! We’ve expanded efforts to reach and support these customers embracing a more self-sufficient lifestyle.
Q: What metrics do you monitor to measure success?
Tenzer: Metrics of success we monitor closely include our total number of customers, active customers, customer value, customer retention, and engagement.
For example, our engagement encompasses a customer’s frequency of visits and what they purchase. Our average Neighbor’s Club member visits us six times per year and spends more on average than customers who are not members.
Q: Are there any specific objectives or goals you're aiming for in 2025 or beyond?
Tenzer: At Tractor Supply, we’re continuously enhancing the Neighbor’s Club experience by delivering more relevant and valuable rewards to our members. We are always listening to our customers.
In 2025, customers can expect to see more personally relevant offers, tailored to provide them with even greater value on the items they want every day. By leveraging data-driven insights, we’re creating more customized perks—both online and in-store—that make shopping with us even more convenient and rewarding.
Q: What technologies are you using to implement your programs?
Tenzer: Our partnerships have helped us reimagine how we manage and leverage data from our Neighbor’s Club. Now with millions of members, providing uniquely relevant content and communications to each customer each week would be impossible without the power of technology. Now, we can better understand our customer’s interests and preferences, recommend the most appropriate offers, and then tailor communications just for them. With these technologies, we are ultimately giving our customers greater access to what they really want from Tractor Supply.
Q: How do you market your loyalty programs?
Tenzer: Tractor Supply’s most effective marketing has always been word-of-mouth from our customers, and since we hire our customers, our team members naturally go above and beyond to share their Neighbor’s Club experience both in-store and online.
Our three-tiered system makes it easy to understand the program’s benefits: with each tier, members earn more points per dollar spent and unlock additional perks like same-day delivery, free shipping and full-day trailer rentals. In March 2024, we revamped Neighbor’s Club to help members earn rewards more frequently and simplified tier qualification for a richer experience.
Q: Which regions of the country and/or with which consumers are you having the most success?
Tenzer: Tractor Supply has broad appeal across geographies and has built strong connections with customers across rural, exurban, and suburban markets, but we see particularly strong engagement among pet parents and animal owners. In fact, 80% of our Neighbor’s Club members have pets or livestock, reinforcing our role as a destination for pet food, supplies and animal care products. Our commitment to providing high-quality brands, expert advice, and exclusive rewards through Neighbor’s Club continues to drive success with this expanding customer segment.
Q: What stats can you share regarding Tractor Supply's rewards program?
Tenzer: Tractor Supply's Neighbor’s Club rewards program has more than 38 million members—about 1 in 7 U.S. adults—and accounts for 80% of the company’s $12 billion in sales. Around 75% of members stay in the program, with retention rising to over 90% in our highest tier. On average, Neighbor’s Club members shop with us six times a year and spend more than non-members when they visit our stores. In 2024 alone, the program connected with members through over 4 billion personalized messages.
Q: What plans do you have for the future of your rewards and loyalty programs?
Tenzer: Our market and the loyalty from new customers holds immense potential, and Tractor Supply is just getting started. Our Neighbor’s Club will continue to evolve with our customers at the center, always focused on delivering the best value every day. Members can look forward to more personalization, customization, and convenience.
