Michaels Revamps Loyalty Program to Capture High-Value "Analog" Crafters
Michaels has overhauled its rewards program with a new three-tier structure offering up to 9% back, aiming to secure loyalty among the 71% of U.S. consumers who identify as crafters. This strategic shift comes as annual hobby spending reaches $3,200 per person, a 67% increase since 2020.
Key Takeaways
- Michaels has overhauled its rewards program with a new three-tier structure offering up to 9% back, aiming to secure loyalty among the 71% of U.S.
- consumers who identify as crafters.
- This strategic shift comes as annual hobby spending reaches $3,200 per person, a 67% increase since 2020.
Mentioned
Key Intelligence
Key Facts
- 171% of U.S. consumers now identify as crafters as of late 2025
- 2Average annual spend on hobby supplies has reached $3,200 per person
- 3Hobby spending has increased by 67% since 2020 due to 'digital fatigue'
- 4New Michaels rewards program features three tiers: Red, Gold, and Platinum
- 5Top-tier Platinum members earn 9% back on every purchase with a $1,000 annual spend
- 6Michaels operates over 1,300 stores nationwide as a market leader
| Tier Name | ||
|---|---|---|
| Red Members | $0 (Entry Level) | 3% |
| Gold Members | $300 | 6% |
| Platinum Members | $1,000 | 9% |
Analysis
The arts and crafts retail sector is undergoing a fundamental transformation as "digital fatigue" drives consumers toward hands-on, creative pursuits. Michaels' decision to relaunch its loyalty program with a tiered structure—Red, Gold, and Platinum—is a direct response to this cultural shift. By offering rewards that scale from 3% to 9% based on annual spend, Michaels is positioning itself to capture a larger share of the "analog" economy. This move is particularly significant given that 71% of U.S. consumers now identify as crafters, a demographic that has seen its average annual spend on hobby supplies surge by 67% to $3,200 since 2020.
From a brand strategy perspective, the new program is designed to identify and insulate Michaels' most valuable customers. The Platinum tier, requiring a $1,000 annual spend, specifically targets the "heavy crafter" who views their hobby not just as a pastime but as a core component of their identity. Heather Bennett, Michaels’ President and Chief Customer Officer, noted that creativity in 2026 has evolved into a form of "self-definition." This psychological shift allows Michaels to move away from the race-to-the-bottom pricing often seen in big-box retail and instead focus on a value-added ecosystem that rewards frequency and depth of engagement.
By offering rewards that scale from 3% to 9% based on annual spend, Michaels is positioning itself to capture a larger share of the "analog" economy.
The competitive implications are substantial. While rivals like Hobby Lobby and Blick Art Materials have traditionally relied on coupon-heavy models, Michaels is pivoting toward a data-driven loyalty framework. This transition allows for more sophisticated first-party data collection, enabling the retailer to deliver personalized offers and "inspiration" tailored to specific creative interests. In an era where privacy regulations are making third-party data less reliable, building a robust internal database of 1,300+ stores' worth of customer behavior is a critical competitive advantage. By formalizing these tiers, Michaels is effectively creating a high-switching-cost environment for its most profitable segments.
What to Watch
Furthermore, the inclusion of birthday bonuses and tiered incentives suggests a move toward "lifestyle" marketing. By rewarding customers more as they spend more, Michaels is effectively gamifying the crafting experience. The Gold and Platinum tiers ($300 and $1,000 spend thresholds, respectively) create clear milestones for customers to reach, likely increasing the "wallet share" Michaels captures from hobbyists who might otherwise split their spending between Michaels and competitors like Joann’s or Target. This is a classic retention play: the more a customer spends, the more expensive it becomes for them to shop elsewhere and lose their 9% reward rate.
Looking ahead, the success of this program will depend on Michaels' ability to maintain the "inspiration" factor Bennett highlighted. As automation and AI dominate the digital landscape, the "return to hands-on living" provides a unique moat for physical retailers. If Michaels can successfully leverage its 1,300 locations as community hubs for this creative movement, the increased rewards percentages will be a small price to pay for long-term customer lock-in. Analysts should watch for whether competitors respond with similar tiered structures or if they double down on traditional discounting to lure price-sensitive shoppers back. The battle for the $3,200-per-year crafter has officially entered a high-stakes phase of loyalty-driven competition.
Sources
Sources
Based on 3 source articles- Michaels (us)Michael's revamps rewards program, offering increased savingsMar 17, 2026
- Michaels (us)Michael's revamps rewards program, offering increased savingsMar 17, 2026
- Michaels (us)Michael's revamps rewards program, offering increased savingsMar 17, 2026
Cite This Page
"Michaels Revamps Loyalty Program to Capture High-Value "Analog" Crafters." Marketing Intelligence Brief, March 17, 2026. https://getmarketingbrief.com/story/michaels-loyalty-program-relaunch-2026
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