Customer loyalty – Reaping the rewards

Customer loyalty schemes are playing an increasingly important role in the marketing strategies of beauty retailers, reports Lucy Copp

For most major retailers today, buying beauty goes hand in hand with receiving rewards. From club card points to exclusive offers and member-only events, consumers have acquired a taste for getting more for both their money and loyalty, and retailers for learning more about their target audience.

In what has developed into a mutually beneficial model, more and more consumers are signing up to loyalty programmes across the UK, while beauty retailers continue to expand them. According to a recent white paper by Aimia, the global loyalty group behind the Nectar programme, entitledThe rise of the savvy shopper; the impact of the recession on customer loyalty, 64% of shoppers are actively using reward programmes in the UK today, while 78% admit to collecting points whenever they can.

Maria Sealey, Director of Research Services at Aimia, says: “While the recession has forever altered the way consumers evaluate brands and make purchase decisions, the fundamental rules of customer loyalty still apply. The new ‘savvy shoppers’ expect savvier marketers – and to build relationships with them, marketers must focus on the basic loyalty drivers, while using data science and customer insight to deliver targeted combinations of reward and recognition. There is not a one size fits all approach; instead marketers must make the best use of data available to them to tailor their efforts accordingly.”

To the point

One of the longest standing beauty rewards programmes in the UK comes from high street health and beauty retailer Boots. In October last year, Boots celebrated 15 years of its Advantage Card loyalty scheme, which has amassed 17.9 million active members. For every pound spent in Boots in the UK, the consumer will receive four points in return, which converts into pounds and pence to spend in store. According to Boots, December is the most common month for consumers to redeem Advantage Card points, closely followed by January, while the most popular beauty treats redeemed are eyeliner and mascara.