Retail Industry Custom Loyalty Marketing Program
Client Profile:
A professional salon brand, available in 135 stores and nearly 8,000 professional hair salons and spas, in 24 countries.
Business Challenge:
The client distributes and sells its products through its e-commerce site, company-owned stores, and independently owned salons.
The company’s branding messages relied on mass communications and advertising, instead of targeted marketing. The client had an existing database of names in their Birthday and GRM mailing programs, but they did not have a way to connect purchasing behaviors to that database in order to measure the success of the programs.
Therefore, the company wasn’t marketing to their customers based on their total product purchases, nor were they rewarding customers for their brand loyalty.
Solution:
In late 2002, Tecmark helped the company introduce a program for proprietary loyalty marketing and as a means of collecting customer information, including name, address, where the customer shops, and how much product they purchase.
After being introduced in the UK, the program launched in the US market in 2004, and in Ireland in 2006. Program members are able to use one card identification number for all channels, in all countries. Due to the member information gathered through the new program, members receive individualized promotions and benefits, via mail and email, as well as point-based rewards. In addition, the program is included as an optional marketing benefit for partner salons’ associated with the brand.
Tecmark was also able to integrate the company’s new loyalty program with their existing Gilbarco Passport POS system.
Results:
- 19% - 27% response rate to certificate mailings
- Average sale per member increased 27% vs. pre-program purchases
- Average purchase frequency by members increased 49% vs. pre-program activity