Best Loyalty Programs: Men's Grooming

Part
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Part
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Loyalty Programs Mens Grooming: Best Practices

Making loyalty programs that are easy to both join and use, offering loyalty programs in a variety of channels, and increasing customer engagement through gamification are some of the best practices for loyalty programs at men's grooming companies.

OVERVIEW

  • According to a Forbes article, customer loyalty programs can be a crucial element in attracting new customers and retaining existing ones.
  • However, how the program is created also goes a long way to boost customer loyalty.
  • According to MarketingPofs, US household belongs to around 30 loyalty programs on average, with only 14 of such programs being active.
  • A recent study by Capgemini shows that many loyalty programs today are failing. 53% of consumers surveyed said the abandoned at least one loyalty program within the previous year.
  • The study revealed consumers abandon loyalty programs because; they lack reward relevance, flexibility, and value (44%); lack of a seamless, multichannel experience (33%); and customer service issues (17%).
  • Another study by Accenture showed that 71% of people claim modern loyalty programs do not create loyalty.

BEST PRACTICES FOR LOYALTY PROGRAMS

  • Since loyalty programs are still one of the best ways for marketers to reward current customers and keep them interested in a brand and its products, the following are some of the best practices that men's grooming companies can employ in their loyalty programs.

1. MAKE THE PROGRAM EASY TO JOIN AND USE

  • The best loyalty programs should be easy for both the customers joining and for the employees signing them up.
  • If a program is complicated, takes too long, or asks for too much information, e.g., if it requires customers to input codes, or show coupons each time they check out, customers will bail.
  • When making a loyalty program, men's grooming companies should also make it easy for their customers to earn and redeem the points/rewards they collect.
  • Sallie Burnett, a loyalty consultant with 25 years of customer loyalty experience, appeals to companies to allow their customers to earn rewards not just for making purchases, but also through other types of interactions. She also suggests that they offer them many reward varieties and provide regular progress updates.
  • Brickell Men's Products, which offers luxury men's skincare and grooming products using natural & organic ingredients, is an example of men grooming companies with an easy to join, use, and redeem loyalty program. After signing up on this program, the individual immediately gets 100 points. Every dollar spent equals 1 point, and for every 200 points redeemed, there is a $10 discount attached.

2. OFFER THE LOYALTY PROGRAMS IN A VARIETY OF CHANNELS

  • Burnett further said that an effective loyalty program should offer the users a variety of channels to allow them to select the method of communication that is most comfortable for them. (Source 1)
  • Men's grooming companies can improve customer loyalty by utilizing email, social media, apps, mailings, and in-store signage, among other methods, to keep them informed.
  • According to a Bond Loyalty study of brand loyalty programs, 57% of consumers prefer interacting with a customer loyalty program through a mobile device.
  • Therefore, the companies should lean towards channels that can easily be accessible by phone.
  • In addition to providing a variety of channels, it is also the best practice for men's grooming companies to speak their customers' language, probably by adding emojis in their communication to make their brands more relatable. The tone of voice is also essential.
  • Dollar Shave Club is an example of men's grooming companies that use a variety of channels to communicate with its customers as well as offer loyalty programs.
  • The company uses different channels to ensure that Dollar Shave Club members receive communications that explain how to make the most of the service and get access to benefits like an on-call grooming concierge.
  • By offering loyalty programs in a variety of channels, Dollar Shave Club has been able to build trust and inspire loyalty (it has more than 3 million repeat customers), as well as to differentiate its brand from other shaving and skincare options.

3. INCREASE CUSTOMER ENGAGEMENT THROUGH GAMIFICATION

  • One of the ways that retailers are using to differentiate their programs and engage with customers between purchases is through gamification.
  • Gamification takes the traditional loyalty program practice of collecting points to earn rewards while placing a fun, social spin on it.
  • Through gamification, companies offer consumers the opportunity to progress toward a goal with more milestones, such as badges or levels, to show progress along the way.
  • Not only does gamification increase customer participation and loyalty, but it can also increase the number of customers since consumers can use hashtags on social media to share their experiences and encourage friends to participate.
  • Nike is an example of companies using gamification in their loyalty programs. Recently, Nike created a game for its members, which allows them to go on a virtual treasure hunt to find new shoe designs.
  • Nike realized that loyalty programs are much more than collecting points for purchases. It is thus driving engagement and repeat purchases by using gamification to transform simple shoe shopping into something that resembles a sport.
Part
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Part
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Loyalty Programs: CVS, Target and Barnes & Noble

In order to have a better understanding of the best practices on loyalty programs associated with CVS, Target and Barnes & Noble, we have focused our research on their respective loyalty programs. We were then able to explain why customers chose to engage with the loyalty programs, their benefits, ways to collect the customer's information and opportunities to create loyalty. Below is an overview of our findings.

CVS's CarePass

Reasons for Post-Purchase Engagement

  • The company has elaborated their loyalty program catering to the customers' preferences.
  • CarePass is flexible, since it allows members to either pay a $5 monthly fee or an annual payment of $48.
  • It helps customers save money while taking care of themselves and their families.

Building Loyalty

  • During their test stage, CVS rewarded their members at key moments throughout the year with, for example, free sports physicals at their MinuteClinics and free photos during holidays.
  • The membership feels will help pay for the program, therefore providing better communication and offers. The program aims to reward customers for every healthy choice they make.

Value for Users

  • CVS CarePass offers free national pharmacy delivery and around-the-clock healthcare access.
  • They also provide free one-to-two-day online purchase delivery on eligible items and prescription drug orders, a 20% discount on certain CVS Health brand products and access to a live pharmacist are listed around the program's benefits.
  • Members receive a once-monthly $10 CarePass promo rewards, which are added to their ExtraCare reward cards, expiring at the end of the monthly cycle.

Collecting Customer's Information

Target Circle

Reasons for Post-Purchase Engagement

Building Loyalty

Value for Users

Collecting Customer's Information

  • To use the program, customers can swipe a bar code from the Target app or provide their phone number at checkout.
  • New costumers can sign up by creating a Target.com account and applying or using a RedCard.

Barnes & Noble Member Discount

Reasons for Post-Purchase Engagement

  • Barnes & Noble's Member Discount offers a discount in books, bargain books, music, DVDs, cafe items, children's titles, toys and more.
  • Eligible in-store items, such as hardcover books, NOOK devices and accessories, already discounted items, bargain books, music, movies and cafe, are 10% off the list price for Members.

Building Loyalty

  • Customers are able to link their Membership to their online account.
  • Members will be able to join the Kids' Club with no additional charge, being able to enjoy both program's benefits.
  • Members are able to use their Member cards at all Barnes & Noble and Bookstar Stores.

Value for Users

  • The Everyday Member discount applies to Free Express Shipping within 1-3 days for online orders on the company's website.
  • There is a 40% discount on the list price of 10 current fiction and non-fiction hardcover best-sellers, based on in-store Barnes and Noble sales.
  • There is a 10% off and Free Express Shipping for in-store ship-to-home orders, which will be sold at the in-store price.

Collecting the Customer's Information

  • All new Members who provide a valid email address upon enrollment will receive coupons for over $60 worth in savings via email, one week after the enrollment.
  • The Welcome Bonus Coupons are redeemable both in-store, except for cafe coupons, and online.
  • Special offers are sent via email throughout the year.

Research Strategy

In order to narrow down the research results, we started by looking up the main benefits each program has to offer, in order to provide an explanation for the tangible value for users. The articles found regarding their loyalty program gave an interesting insight on how the companies get the customer's information, which is relevant to the topic at hand. The benefits of the program were also extracted from said articles, as it provides both the value it has to the users, how they create loyalty and why they would join. For the Barnes and Noble's Membership program, the research team browsed the company's help website to make a list of what would make the customer join and how they would be able to create loyalty and get their information.
Part
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Part
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Loyalty Programs: Nordstrom, Bed Bath & Beyond, and Sears

Leading brands have discovered that reward programs help them retain their current customers and attract new ones. Nordstrom has The Nordy Club as it rewards program, Bed Bath and Beyond's loyalty program is Beyond+, and Sears offers free cash and cashback in points to its member customers as rewards for first-time purchases and loyalty.

The Nordy Club

  • Nordstrom's rewards and incentives for include the following:
    • The Nordy Club members get rewarded just for shopping at Nordstrom, Nordstrom Rack, and Trunk Club.
    • Automatic membership for cardholders and free enrollment for new members make it easy and attractive to join and maintain membership in the rewards program.
    • The Nordstrom reward program gives members a chance to shop select brands and grants them access to beauty and style workshops and curbside pickups.
    • Every dollar spent at Nordstrom earns members a point, which can be used to unlock Nordstrom Notes.
    • Membership levels are categorized in accordance with annual spending. For instance, there is a Member level ($0-$500), an Insider level ($500+), an Influencer level ($2000+), and an Ambassador level ($5000+). The rewards increase in value as members spend more.
    • The Nordy Club is specifically better for Nordstrom cardholders since cardholders automatically get $40 "Bonus Notes" when they purchase from Nordstrom or Nordstrom Rack.
    • Members who are cardholders have access to Insider Benefits, as well as receiving three points for each $3 spent, which is triple what non-cardholders get as a reward for purchases.
    • Cardholders also get early access to Clear the Rack events and the Anniversary Sale. They also receive $100 in alteration benefits. Reimbursements for all alternations made at Nordstrom stores in the form of Nordstrom Notes are also part of the benefits.

    Reasons for Post-Purchase Engagement

    • The company has a loyalty program for loyal customers, whether they are buying or not. The program encourages the customer to engage with the company even when they are not making any purchases.
    • Annual membership ensures that a member can enjoy privileges for the rest of the year, which helps retain the member.

Building Loyalty

  • Free incentives and member prioritization during events and early access to new brands ensure members feel included.
  • Free membership leads to more customers wanting to be part of the program.

Value for users

  • Rack Clearance Events and Anniversary Sales make users feel valued.
  • The ranking of customers makes customers want to get to a higher level because it opens up better deals for them, which in turn, makes them feel more important as they spend more.

Collecting Customer's Information

  • The Nordy Club collects members' information on apps and social media, then uses that information to suggest specific preferences for individual customers.
  • The company also communicates with customers about new deals, restocks, discounts, and rewards to achieve mutual benefits for both the company and the customer.

Beyond+

  • Bed Bath and Beyond's incentives and rewards to its customers and members include the following:
    • Members receive free standard shipping on all online orders for $29 a year and 20% off all digital or store purchases. The annual cost of $29 is a big incentive when compared to the $35 shipping fee for non-subscribers on all orders.
    • Beyond+ members receive a discount on almost everything they purchase, whether online or in-store. There are, however, some exceptions to the discount.

Reasons for Post-Purchase Engagement

  • After-sale services for customers are usually provided for free. It encourages the customer to engage with the brand even when no purchases occur. Bed Bath and Beyond offers customer support even after the customer has completed their purchase.
  • Information on new discounts from the company is a vibrant way to retain membership of customers even when no purchases are currently taking place.

Building Loyalty

  • Offers that are exclusively for members and subscribers to newsletters and alerts on offers and deals lead to customers engaging with the company even when they are not making purchases. Loyalty points lead to customers returning to the store again to earn more points.

Value for users

  • Bed Bath and Beyond provides the same products and services as other outlets but offers better discounts and more valuable coupons. The coupons are an indication to the customer that they are more valued at Bed Bath and Beyond than any other retailer.
  • Discounted shipping fees for members provide value for online shoppers at Bed Bath and Beyond.

Collecting Customer's Information

  • Bed Bath and Beyond collects customer information for warranties.
  • The information is also used to check in with the customer on previous purchases to monitor how well they are performing. This is a top way Bed Bath and Beyond keeps in touch with customers.

Sears

  • Sears does not have a reward program for its members. However, the company provides rewards and incentives to its members.
  • When purchasing items from Sears, members are eligible for 1% cash back in points for every $1 they spend. They also have opportunities to earn additional points with bonus points offers.
  • Free random rewards of free cash in points are also available for customers.
  • Free shipping and personal shopper services help members save time and money. They also receive shopping advice and daily sweepstakes entries that give members a chance to play and win merchandise.

Reasons for Post-Purchase Engagement

  • Customer retention is equally important as attracting new customers. Rewarding loyal customers with points for being loyal even when they are not purchasing makes it more likely that the customer will prefer the company over others in the future.

Building Loyalty

  • Shopping advice provided by Sears creates a personal bond that increases customer loyalty.

Value for users

Collecting Customer's Information.

Part
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Part
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Loyalty Programs: Office Depot, Amazon, and REI

Amazon and REI charge fees for their loyalty program, whereas Office Depot membership is free. Reports cite Amazon Prime loyalty program as the "game-changer for all retailers."

Loyalty Programs: Office Depot, Amazon, And REI

Office Depot:

Overview Of The Customer Loyalty Programs:

  • Office Depot provides loyalty programs, namely the OfficeMax Rewards (“Program”), VIP Rewards Member Benefit and Recycling Rewards for their customers.
  • The loyalty program entails 2% back in rewards on your favorite supplies, furniture, technology, recycling rewards of $2 back in rewards on recycling ink & toner cartridges (Up to 10 cartridges per month).
  • The program also covers members-only savings, including Rewards Member Pricing and Bonus Rewards, rewards for reviews of $2 back in rewards for reviewing products up to 3 per month, and redeem rewards instantly at checkout in-store, online and on the go.
  • A VIP member gets 5% back in rewards, free 2-day delivery with no minimum purchase and a special birthday offer.

Reasons for Post-Purchase Engagement:

Value for Users:

Collecting Customer's Information:

  • The loyalty program can be quickly joined online at officedepot.com/rewards in any Office Depot or OfficeMax store, or by phone at 844-774-2664.
  • The membership is free, and post enrolling at one in a store or over the phone.the customers should visit officedepot.com/rewards to create an online account to manage their membership.
  • One can also access their digital membership card by downloading and logging in to the Office Depot mobile app.

Amazon:

Overview Of The Customer Loyalty Programs:

Reasons for Post-Purchase Engagement:

  • The vendors send the customers an invitation to participate in an action and after reaching a spending threshold or playing a game in an app, they get rewarded.
  • Amazon users can apply other Amazon perks when they redeem their Moments rewards, like free two-day shipping with Amazon Prime memberships.
  • 80% of Prime customers who have been a part of the program for at least three years “trust Amazon to treat me like a valued customer.”

Building Loyalty:

Value for Users:

  • "Different user categories can receive rewards of varying values — $5 gift cards for occasional users; $100 for big spenders."
  • There aren’t any points, redemption options, tiers, or statuses with Amazon Prime Loyalty Program.
  • Amazon Prime members gain shipping benefits, which include: free two-day shipping, free same-day delivery in eligible zip codes, prime now: get free 2-hour delivery, free release-date delivery, free no-rush shipping and Amazon day.
  • They also gain access to Streaming benefits like Prime Video, Amazon Channels, Prime Music, Amazon Music Unlimited and Twitch Prime.
  • The Shopping benefits include Whole Foods Market, Amazon Prime Rewards Visa Signature Card, Amazon Prime Store Card, Amazon Dash for Prime, Amazon Fresh, Prime Wardrobe, Prime Pantry.
  • They also get the added benefits of a Personal Shopper by Prime Wardrobe, Deals and Discounts, Compliments of Amazon Family, Prime Early Access and access to Amazon Elements products, Amazon's line of everyday essentials.
  • The program also includes Reading benefits and membership sharing benefits with two adults living in the same household.

Collecting Customer's Information:

REI:

Overview Of The Customer Loyalty Programs:

  • The customers receive a 10% back as member dividend, access to members-only special offers, access to In-store Garage Sales and special pricing on REI Outdoor School classes and events, rentals, bike and ski shop services, and adventure trips.

Reasons for Post-Purchase Engagement:

Building Loyalty:

  • REI associates itself with outdoor expertise by offering a series of outdoor adventures. Anyone can book a trip, but these adventures are heavily aimed at REI Co-Op members and discounted substantially.
  • “While consumers might be able to score a coupon at other sporting goods stores, they probably aren’t traveling to any Norwegian fjords with them. An experience, unlike anywhere else. That’s what sets REI apart. That’s what builds loyalty.”

Value for Users:

Collecting Customer's Information:

Research Strategy:

Research Methodology:
  • To provide an overview of the customer loyalty programs at Office Depot, Amazon, and REI. Specifically focusing on what about these programs attracts customers to participate in them and detail them based on the loyalty best practices and competitive research. We scoured through Media Publications/Blogs like Business Wire (source 5), Forbes (source 7), Digiday (source 8), Forrester (source 9), Business Insider (source 14), The Wise Marketer (source 16), Retail Dive (source 19) among others. We also scoured each companies respective Websites/Blogs/Press releases to ascertain the key motives for audience post-purchase engagement, key moments in the consumer decision journey that builds loyalty, where to capture email, value exchange for users.
  • To narrow down the research results, we started by looking up the main benefits each program has to offer, to explain the tangible value for users. The articles found regarding their loyalty program gave an interesting insight into how the companies get the customer's information, which is relevant to the topic at hand. The benefits of the program were also extracted from said articles, as it provides both the value it has to the users, how they create loyalty and why they would join.
  • Post this, we summarized the key findings in the box above under appropriate headers.
Part
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Part
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Loyalty Programs: Starbucks, Sephora, and Bloomingdale's

The rewards programs for Sephora, Starbucks, and Bloomingdale's all provide incentive to receive benefits that consumers value. Sephora promises special events depending on the tier, while Starbucks offers free food and drinks. Meanwhile, Bloomingdale's offers points to eventually receive a free rewards card.

Starbucks

  • The Starbucks rewards program works on the amount of stars earned with every purchase, once enough stars are collected. The stars can be redeemed in exchange for free drinks and food.
  • The rewards program also allows an individual to order ahead and pay with their phone. Additionally, they can receive free brewed coffee and tea refills, a special birthday treat, double star days, bonus stars, and exclusive offers.
  • Earning stars happens everytime one visits Starbucks, they collect two stars per $1.00 spent at an establishment.
  • Starbucks claims that there are more than 16 million individuals currently enrolled in its program.
  • According to the new modification to the Starbucks Rewards program, after accumulating 25 stars, individuals qualify for a free drink.
  • There are different levels for the stars including 25 stars (free custom drink), 50 stars (free brewed hot coffee, bakery item, or hot tea), 150 stars (handcrafted drink, hot breakfast, or parfait), 200 stars (salad, lunch sandwich, or protein box), and 400 stars (select merchandise or at home coffee).
  • To sign up, customers need to have the app capture their email address, and on occasion, emails such as the free birthday treat will arrive through their email.


Sephora

  • There are three tiers in the Sephora Beauty Insider cards and each comes with individualized benefits.
  • The Insider status is a free rewards card that grants one point per dollar spent, and it provides benefits like seasonal savings, two selections for a birthday gift. It does come with the Rewards Bazaar, which includes trial sized items and sets and exceptional experiences.
  • The next tier is the VIB which is a yearly spend of $350.00 and rewards 1.25 points per dollar, along with four selections of products for a birthday gift, double seasonal savings, and three options for a tier celebration gift. Also, it supplies both full sized and trial sized products, and unique experiences through the Rewards Bazaar.
  • The final tier is the Rouge Rewards card, which is yearly spending of $1,000 and provides 1.5 points per dollar, as well as four selections for a birthday gift, triple seasonal savings, and three options for a tier celebration gift. Additionally, it comes with free standard shipping, early access to products, exclusive events, $100 Rouge reward, both full sized and trial sized products and sets, and unparalleled experiences through the Rewards Bazaar.
  • To sign up for Sephora's rewards program, the company has to capture the person's email. The card tracks the products users purchase and offers personal recommendations.
  • Based on the tiers that are featured on Sephora's rewards program, it gives consumers the opportunity to reach the elite benefits.

Bloomingdale's

  • By joining Bloomingdale's Loyallist program, customers can earn one point for each dollar spent in outlet stores, online, and in store, online. They can also receive double points on fragrances, cosmetics, and shoes. Furthermore, there is a $25.00 rewards card when customers hit 5,000 points, a perk of the month distributed to their inbox, along with double, triple, and power points during events, and free shipping with no minimum purchase.
  • When one observes how much the points are worth, they can take the $25.00 rewards card and 5,000 points it takes to get there and discover that each point is worth about $0.005 [$25.00/5,000 points].
  • To sign up for the Loyallist card, one has to provide their email. For the company to track the points, they will also capture the customer's purchase history.
Part
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Part
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Loyalty Programs: Michael Kors, Tarte Cosmetics, and Marriott

Michael Kors, Tarte Cosmetics, and Marriot share some similar features in their loyalty programs such as free membership, lots of incentives, and easy steps involved in joining the program. The reason for this is that the trio offers best practices for loyalty programs. The overview and some other selling points of these programs, such as the real value exchange for users are provided in the findings below.

Michael Kors

  • The loyalty program of Michael Kors is branded the name 'KORSVIP', and it is a four-tiered loyalty program comprising the studio, backstage, runway, and red carpet levels.
  • KORSVIP offers incentives such as birthday rewards, private events, annual gift shipment, surprise gifts, and free shipping and returns. More so, the program provides VIP treatment to customers; which is enough reason to attract participation.
  • Based on best practices, KORSVIP is cost-free, real, consistent, and rewarding. The audience would be motivated for post-purchase engagement because Kors offers the program for free, her gifts are real, her birthday rewards indicate consistency, and her free shipping and returns is a reward for money spent.
  • Based on best practices, KORSVIP offers key moments towards consumer loyalty decision journey through pointers to the incentives available, the easy steps involved in joining the program, and the zero-cost of the program. Email can be captured at any of the above moments. Kors embraces these moments on the homepage of KORSVIP to entice customers towards building loyalty and capturing their emails/data.
  • One of the tangible value exchanges for users of KORSVIP is the reasonable amount a user can get in exchange for minimal time spent. For instance, a customer can make $55 (without spending a dime) in a day for a year as such customer would get 100 points signing up, 50 points for submitting a review (max of five in a year), 10 points for wish list items (max of 10 items in a year), and 100 points for signing in to the app. 10 points is the equivalent of $1.
  • Another real value exchange for users of KORSVIP is the rewards available for spending a minimum sum of $500 on items purchased within a year. This sum of money ($500) would earn the customer 5000 points, and this avails the customer to some tangible benefits that include birthday gifts and gifts wrap. Earning 15000+ points offer users a real value exchange for VIP experiences and unique loyalty gifts.
  • Real value exchange for users participation in KORSVIP can also be in the acquisitions of top trending handbags and other quality merchandise. Any of the above incentives and tangible value exchanges will warrant email or data-capture in the company's loyal program data bank.

Tarte Cosmetics

Marriot

Research Strategy

We started our findings by evaluating the loyalty programs of the three companies. We then compared these loyalty programs with the best practices in the industry.

Through our robust analysis, we discovered that these three loyalty programs share many similarities, such as free membership, lots of incentives, and easy steps involved in joining the program. These are best practices for loyalty programs.

Nonetheless, we were able to provide details of how these programs attract customers to participate in them. We defined key motives for audience post-purchase engagement by listing incentives of each loyalty program that are likely to motivate customers' post-purchase involvement with the company. We mapped our key moments in the consumer decision journey by raising pointers to things that are likely to sustain customers' loyalty. We also outlined a real value exchange for users by providing tons of benefits the companies are offering through their loyalty programs. Lastly, we provided where email or data-capture can be captured through the enticing offers on the homepages of these programs.
Part
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Part
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Loyalty Programs: Lululemon, Kohl's, and Ulta

Lululemon, Kohl's, and Ulta have loyalty programs with obvious and clear value preposition for both existing customers and potential customers. Once enrolled in those loyalty programs, the companies nurture loyalty and encourage repeat purchases by offering customers exclusive deals and promoting them to elite and VIP levels.

1. Lululemon

Key Motives for Audience Post Purchase Engagement

  • A report from CNBC noted that Lululemon's loyalty program is intended to make shopping experiential in order to keep customers coming back."
  • Also, the brand stands for healthy and active lifestyle and this serve as positive reinforcement on how the customers feel about the product leading to repeat purchases. Free sweat and workout classes and curated events increase customers' engagement with the brand.

Mapping Key Moments in the Customer Decision Journey

  • Lululemon encourages non-buyers to become potential buyers using the clear benefits presented on their website such as quick order and return tracking, getting a tailored shopping experience, and storing payment and shipping information securely. This can only be done by creating an account on the website using an email address. Lululemon's tagline in capturing the email address of potential buyers is "Let's be friends with benefits".
  • Lululemon's customer loyalty program aims to target existing customers and not new buyers. The main purpose of Lululemon's loyalty program is to gain additional revenue through incremental purchases from existing customers.
  • Loyalty programs in the apparel industry have one of the lowest customer satisfaction rate. Lululemon has been effective in this regard which prompted the company to raise the annual fee during testing because of the engagement and well-favored response from those who tried out. Thus, Lululemon spent less on marketing to win new customers because of the well favored testimonials and the hype that was generated.

Tangible Value Exchange for Users

  • Lululemon's loyalty program charges members $128 as annual fee but they will be able to get a free pair of pants or shorts as well as the ability to attend curated workout classes and free expedited shipping.
  • Lululemon's pants cost more than $100 and leggings start from $128. Thus, one can see the clear value preposition Lululemon offers apart from other perks such as free shipping.
  • The program was successful and Lululemon's CEO Calvin McDonald commented that “Guests are seeing value beyond just the product”.
  • Lululemon has a landing page on its website to warrant email in exchange for information such as new products, stories, and events. Once subscribed, Lululemon's newsletter doesn't just promote awareness but encourages the reader to buy products from the company.

2. Kohl's

Key Motives for Audience Post Purchase Engagement

  • Kohl's Cash can be tracked using a single barcode on the store, website or the app. Then, the company sends personalized recognition via email or through mobile app reminding them of the rewards they've earned.
  • This will encourage buyers to repeat the purchase by providing them with an easier and more personal loyalty experience.
  • Also, since redemption window varies, Kohl's automatically alerts the members when it is time to redeem. They are also reminded of upcoming special events where they can earn a cash bonus of $10 for every $50 spent.

Key Moments in the Customer Decision Journey

  • Kohl's has three existing rewards program — Kohl’s Charge (60% of their tender), Yes2You Rewards (30 million active members), and Kohl's Cash benefit. However, all these programs are simplified and consolidated into a single program called "Kohl’s Rewards".
  • Potential buyers are encouraged to apply for Kohl's Rewards because of the potential rewards and savings. According to Greg Revelle, CMO of Kohl's, to become a member, a potential customer doesn't have to hold a membership card or pay with Kohl's credit card. The customer rather needs a valid email address, a phone number, and a zip code.
  • Buyers will also be enticed to buy during special events as Kohl's gives back $10 for every $50 spent during special "Cash Bonus" events
  • Using Kohl's credit card offers 10% Kohl's cash reward instead of 5%.
  • Loyal buyers are also encouraged to level up their status in Kohl's Rewards program by spending $600 or more in a calendar year in order to receive free standard shipping and early access to Black Friday deals.

Tangible Value Exchange for Users

  • Kohl's tagline for its loyalty program is "Get More". This is true because registering to the program through an email address, the member will be able to receive 5% Kohl's Cash for every purchase and 10% if they will use Kohl's charge.
  • Exclusive events such as Cash Bonus and promos such as 30%, 20% or 15% off are exclusive to members of Kohl's rewards. More value will be given to loyal buyers who have achieved 'Elite Status' (spent $600 or more in one year).

3. Ulta

Key Motives for Audience Post Purchase Engagement

  • Aside from the level of memberships that convinces consumers to shop for more, the company has invested in personalization through digital innovations. The company sends relevant personal recommendations and reminders to ensure customers feel comfortable and welcomed.
  • The company is also developing an Innovation Ecosystem to increase consumer engagement. For example, Ulta acquired technology startup Spruce to develop a service system to facilitate booking salon appointments among members.
  • It has also acquired QM Scientific, an AI startup, recognized by the National Retail Federation as one of the disruptors in the retail space. Its acquisition of GlamST helped the company to develop virtual try-on experience.

Mapping Key Moments in the Customer Decision Journey

  • Potential customers are encouraged to sign up to the Ultamate Rewards Program.
  • Ulta has been successful in enrolling customers to Ultamate Rewards Program, as 95% of Ulta's sales is from the company's rewards program which has more than 30 million members currently.
  • The company has a strong store conversion rate and marketing to increase awareness. These two along with the obvious clear benefits are the main drivers to add more loyalty members.
  • Consumers are encouraged to level up the status and become a Platinum member. Some of the benefits include points that won't expire and $10 birthday coupon.
  • The last level that consumers can achieve is 'Diamond'. The company has poured benefits to keep loyal customers satisfied. All these level up promotions and events are sent via email. Therefore, customers are keeping an eye out for emails from the company.
  • The introduction of Diamond and Platinum tiers as well as personalized interaction with customers are the main drivers in capturing more wallet share.

Tangible Value Exchange for Users

  • Regular members who signed up for free will be able to earn 1 point per dollar spent and the company gives a free birthday gift.
  • Platinum members who were able to spend more than $450 in a calendar year have benefits similar to the ones available for regular members but has an additional $10 birthday coupon and one can earn 1.25 points per dollar spent.
  • Diamond members who spent more than $1200 dollars in a calendar year can earn as much as 1.5 points per dollar spent and has access to everyday free shipping and an annual $25 beauty services reward.
Part
08
of eleven
Part
08

Men's Grooming: Panasonic, Phillips, Remington

Panasonic and Philips provide unique features like community hubs, and cashback offers to their customers. However, none of the companies provides dedicated loyalty programs for the men's grooming products category. While Philips does offer some discounts on its products sold directly from the site, Panasonic does not sell its grooming products other than through its retailers.

Panasonic

  • Overview: The men's grooming products by Panasonic under the 'Personal Care Header' includes shaving + grooming accessories. These are further broken down into shavers, replacement blades + foils, professional trimmers + clippers, nose + ear trimmers, and beard + hair trimmers.
  • Panasonic US site does not allow direct purchase of any men grooming product from its website and thus provides a link to the retailers' site for each product.
  • Value: The extensive range of products provided by Panasonic under the clearly segmented categories is one of the salient features it provides to its customers. Easy to use features like Live Chat and 'finding the best retailer' provides a fingertip tool to the best-dedicated product support as well as buying options.
  • The "Panasonic Community Link" provides additional value to its customers by opening a space for all esteemed consumers to discuss various products, among other issues.
  • Innovation and Smart Technology are other key value propositions by the brand that retain customers in the segment.
  • Loyalty: Though Panasonic does not provide dedicated loyalty programs for men's grooming product consumers in the US, it is only available to customers outside of the US through Mindbox.
  • Additional Services: The Centralized Panasonic US Repair Facility for small products (including grooming products) bolsters customer service with the cost and time for repair being kept optimum based on warranty status and the service required. Panasonic has a well-segregated warranty resolution center, which is split for large items and small items. Services related to large products like televisions, massage chairs and microwaves are catered for by an authorized service provider near the customer.
  • The "Email Signup" feature is an added advantage provided to customers through which subscribed customers can get notifications related to new offers, warranty status, order status etc. with ease and convenience.
  • Extra offers/discounts over purchases from amazon: Panasonic does not sell its products directly from its website and only redirects to the best retailer for the grooming products. Thus, there is no comparison in this field.
  • Member's Club/Email List: Panasonic does provide an email signup feature to all its consumers (including men's grooming products) through which they can get notified about new products and offers, order details, first-in-class reviews, among other services. However, this is only open once the customer has subscribed on the portal.
  • Panasonic has a dedicated Panasonic Community where customers openly discuss various products and utilities, thus serving as a common hub for discussion and opinions.

Philips

  • Overview: Philips provides men's grooming products through its dedicated Philips Norelco venture that is specialized in grooming products and accessories in the US. The company is known for its brand value through innovation with the men's grooming category providing some additional features.
  • The grooming segment ranges in products categorized under shavers, beard trimmer, multi groomer s, nose trimmer s, hair clippers, body groomers, one blade and versatile.
  • Philips allows its customers to choose and compare the current products with other products in a similar range, thus providing an added advantage to choose the best from the lot. Typically, though Philips does not sell all its products directly through its website and offers a link to the best retailer for it.
  • Value: Philips in known to build its brand under the "Innovation and you" tagline. Additional value is created by the brand when a customer visits the men grooming page for the first time by offering him promotion signup.
  • Offers like free shipping on all products and a "30-day return Guarantee" adds on to the value proposition of the brand.
  • Salient sections like "Male Grooming Hub" and "Discover MyPhilips" offer customers with cashback, gifts and special offers, thus helping the brand to retain customers longer.
  • Loyalty: Philips does not run any loyalty programs under the grooming products sections in the US.
  • Additional Services: The "Discover MyPhilips" program provides its customers with various cashback, gifts and special offers along with "track your product warranty coverage" like salient features.
  • Each product page within the men's grooming section provides consumers with discount offers and additional options to purchase the same product from other retailers. The feature of a healthy comparison of the current products with other products in a similar range adds on ease to the customer who may think of finalizing the product based on selected functionality and pricing.
  • Extra offers/discounts over purchases from amazon: Philips does offer discounts on products that are sold directly through its website. However, the rate of discount may vary from that offered by a retailer of the same product. Purchasing the product directly from the site does entitle the customer to signup for additional features like cashback, product demo or future new releases, among others.
  • Member's Club/Email List: The "Male Grooming Hub" and a special member's signup offered to every new customer serve as a commonplace for Philip's customers to discuss opinions and access to the latest offers related to grooming products.

Remington

  • Extra offers/discounts over purchases from amazon: Remington does not provide any additional discount on its products as against its retailers.
  • Member's Club/Email List: Remington does not provide any member's listing or email list to its customers other than the normal signup process entitling to features like free shipping over $50, product registration, flexible returns, among others.

Research Strategy

The research team initiated the research by first understanding the scope of men's grooming product range as offered by each company. Since the size of the players varied, the kind of services offered by each also varied to a large extent. Hence, each company was dealt with individually to gather answers to the requested parameters.

Information related to value proposition was identified by the way the company treated its customer, and additionally by the salient features as provided by the companies to its customers. Information related to loyalty and additional services were gathered from the respective websites and the policy pages. Further research was done into each company to look for its after-sale services, which were found to strengthen its brand for the consumers.

To assess the discounts and offers provided by the companies as against retailers, individual products have been compared for each company. While for Panasonic it was found that direct selling was not available, Philips was found to offer some discounts for direct purchases. All the three companies were found to sell products through retailers. While Member's club/email list were provided by Panasonic and Philips, Remington had a generic email signup process only. These features were checked through company websites, customer reviews, company blogs, among others.
Part
09
of eleven
Part
09

Men's Grooming: Phisco, Electric Shaver, Wahl

Phisco sells four types of rotary shavers and has a regular newsletter and a loyalty program for its customers. Wahl sells over a hundred different products in toiletries, clippers, shavers and trimmers. It does not have a loyalty program but sponsors causes related to its products.

Phisco

Products

  • Phisco sells four types of rotary head shavers from its website.
  • Model 8108 is the Phisco Men's Electric Rotary Shaver Razor With Beard Trimmer 3D, and model 8112 is the Phisco Electric Shaver Quick Charge Rotary Shaver.
  • IPX7 is a whole-body waterproof shaver.
  • All the above currently sell for $39.99 on both the Phisco website and Amazon.com.
  • The Phisco X6 is the Phisco Electric Shaver with a wireless Charger. Price is $89.99.
  • Phisco also sells Electric Shaver 3 Blade Replacement Blade SW-BC09 for $15.99.

Programs and Services

  • Phisco encourages customers to register on their site for warranties.
  • It also sends out regular newsletters via email to its members.
  • The newsletter is described as offering "new collections, the latest lookbooks, and exclusive offers."
  • Members who buy their shavers through their website are given points for each purchase. Those points can be used to purchase other products.
  • Members can log into the site to track orders and points.
  • Phisco's Facebook page has 1238 likes and posts articles on an average of one post every two weeks.

WAHL

Products

  • Wahl offers 26 branded men's toiletry items, including beard oil, beard wash, beard softener, body wash, shampoo, body lotion, hair pomade, beard balm, aftershave, beard brushes, and combs.
  • They have 21 different models of hair clippers, 37 types of trimmers, eight different shavers, and 45 different replacement parts.
  • Wahl's most sold shaver is the Smart Shave™. It currently sells on their website for $89.99 and on Amazon's site for $69.18. Their toiletries are comparably priced.

Programs and Services

  • Wahl offers free shipping for orders over $25.
  • They encourage customers to create an account and sign in to check out faster, keep more than one address, track orders, and more. They do not appear to offer a loyalty program.
  • The website has a product selector, which takes customers through a series of questions to offer them the best choice for their needs.
  • Wahl has three programs for men and one for dogs.
  • Mobile Grooming Tour has Wahl's touring the country in a massive 30-foot mobile barbershop.
  • As the Official Sponsor of Facial Hair, they celebrate great beards and mustaches. Their goal is to identify the 10 Most Facial Hair Friendly Cities in America.
  • Cuts for a Cause is a program where Wahl's will support any fundraising involving hair or beard-cutting.
  • Their Real Guys program shows videos of firefighter and bikers.
  • Apart from their men's grooming programs, Wahl's also partners with GreaterGood.org to help shelter dogs and sponsors an annual Dirty Dog contest where they groom shelter dogs to increase their chances for adoption. They publish a top ten list annually of the best makeovers. This activity promotes both their pet clippers and pet shampoo.
  • Wahl's Facebook page has 43,094 followers. Their page had almost daily postings in October 2019.




Part
10
of eleven
Part
10

Men's Grooming: Gillette, King of Shaves, BIC

Customers who order from Gillette receive 40% off their first starter kit. King of Shaves' customers can sign up to receive exclusive deals. BIC has a variety of money off coupons that can only be used on their website.

Gillette

Discounts and incentives:
Subscription service:
Members club / email list for customers only:
  • Gillette does not have a members club or email list outside of its subscription service.
Website only products:
  • Gillette's website offers a personalized razor, something that can not be purchased on Amazon. Customers can upload an image and it is added to the razor handle.

King of Shaves

Discounts and incentives:
  • Customers ordering over $30 receive free shopping on the King of Shaves website.
  • King of Shaves has teamed up with Splitit. The service allows customers to split their payments into six interest free payments, with no fees. This service is available in the UK.
Subscription service:
  • King of Shaves' EcoPlan is a subscription service that is not sent monthly, but all at once, to reduce the impact on the environment.
Members club / email list for customers only:

BIC

Discounts and incentives:
  • BIC offers free shipping on orders over $29.
  • BIC's current deals are $3 on the purchase of any one BIC Soleil disposable razor pack.
  • Save $3 on any BIC Flex or BIC Hybrid 3 Comfort Razor Pack.
  • Save $2 on the purchase of any BIC single blade, twin blade, BIC Comfort 3 or BIC 3 disposable razor packs.
  • Save $2 on the purchase of any one BIC Silky Touch disposable razor pack.
Subscription service:
  • BIC does not currently offer a subscription service.
Members club / email list for customers only:
  • BIC has an email list that provides deals and tips to subscribers.
Part
11
of eleven
Part
11

Men's Grooming: Dollar Shave Club and Harrys

Consumers who purchase Dollar Shave Club’s products directly from its website will receive benefits such as personalized product recommendations, 20% discount for shaving products bundles, and others. Customers who buy Harry’s products directly from its website will receive benefits such as engraving services, 6% discount for selecting to auto-refill shaving blades, and others.

Dollar Shave Club

Extra Benefits for Buying Directly

  • Dollar Shave Club’s website features a quiz consisting of seven questions about shaving needs, facial issues, hair types, and other grooming-related questions. The company will offer a list of recommendations based on the answers provided.
  • There is no shipping fee if the restock box contains razor blades.
  • Consumers can purchase gift sets from the Dollar Shave Club’s website, which costs from $50 to $100 and includes 5 to 16 products.
  • Customers can buy e-gift cards from the Dollar Shave Club’s website, which costs from $35 onward.
  • As part of the Dollar Shave Club’s Money Back Guarantee policy, consumers can request a refund within 30 days of their purchases if they are not satisfied with the products.

Discounts

Membership/Rewards Program

  • Dollar Shave Club’s members can earn credits by referring friends and family through the referral program.
  • Members can use Dollar Shave Club’s mobile app to manage their accounts, track orders, make purchases, send gifts, and view DSC Original Content (blog).

Harry’s

Extra Benefits for Buying Directly

  • Harry’s offers optional engraving service for Winston razor products and razor stands (for Truman and Winston razors). The engraving service costs $15, and only 3 characters can be engraved.
  • There is no shipping fee for orders over $15 (regular purchases only).
  • Consumers can purchase Harry’s gift cards from selected retailers and then apply to their Harry’s account for future orders.
  • As part of Harry’s return policy, consumers can request a refund within 30 days of their purchases if they are not satisfied with the products.

Discounts

Membership/Rewards Program

Sources
Sources

From Part 02
Quotes
  • "Offers free national pharmacy delivery and around-the-clock healthcare access, expressly to make it easier for members to care for themselves and their families."
  • "Members can opt for the $5 monthly fee, for month-to-month membership, or pay a flat $48 for a year."
  • "Benefits include free one- to two-day online purchase delivery (on eligible items and prescription drug orders), a 20% discount on certain CVS Health brand products and access to a live pharmacist, around-the-clock, who has secure access to members’ prescription histories with CVS Pharmacy."
  • "Members receive once-monthly $10 CarePass promo rewards, which are automatically added to their ExtraCare reward cards at the beginning of each monthly cycle and expire at the end of the monthly cycle. "
Quotes
  • "Program perks include earning 1% on Target purchases, personalized deals and early access to its sales. "
  • "The program is free. Target will begin automatically enrolling members that have Target.com and Redcard accounts. "
  • "Target Circle also gives the company more data about shopping habits"
Quotes
  • "The BN Member discount for paid Memberships applies to most items in Barnes & Noble Stores, including books, bargain books, music, DVDs, Café items, children's titles, calendars, Toys & Games, and more."
  • "At BN.com, the Everyday Member discount applies to Free Express Shipping within 1-3 days on BN.com orders."
  • " 40% off the list price of the current hardcover Barnes & Noble Store Bestsellers. "
  • "Applies to the 10 fiction hardcover bestsellers and 10 non-fiction hardcover bestsellers based on sales at Barnes & Noble Stores."
  • "10% off the Barnes & Noble sale price of other eligible items. "
  • "Includes adult hardcover books, NOOK Devices and Accessories, already discounted items, Bargain books, music, movies, Cafe and almost everything else."
  • "10% off and Free Express Shipping for ship-to-home orders placed in retail stores (orders placed in retail stores will be sold at the in-store price, and not the BN.com price)."
  • "All new Members who provide a valid email address upon enrollment also receive coupons offering over $60 in total savings via email approximately 1 week after enrollment. "
  • "PLUS special offers sent via email throughout the year"
  • "The Welcome Bonus Coupons are redeemable both online and in stores (except café coupons, which must be used in-store). "
Quotes
  • "To become a member and take advantage of CarePass benefits, customers can sign up for CarePass by enrolling in-store or visiting CVS.com/carepass."
Quotes
  • "All guests can enjoy an easier, more personalized shopping experience, while helping create a positive impact in their local communities, with no membership fee required. "
  • "Having a positive impact in their local community by voting to direct Target’s giving initiatives"
  • "New guests can sign up by creating a Target.com account, applying for and using a RedCard or providing their phone number in a Target store."
  • "We worked directly with guests to develop Target Circle, and the program includes the benefits and perks they told us were most important to them, from earning on every trip to having the opportunity to help Target make a positive impact in their local communities."
Quotes
  • "Keeping your Member information current in your BN.com account allows us to provide you with the best customer service and ensures that you won't miss a day of savings."
Quotes
  • "B&N Members are absolutely welcome to join the B&N Kids' Club at no additional charge. "
  • "Members who join the B&N Kids' Club will be able to take advantage of the benefits offered by both programs."
Quotes
  • "The Member card may be used at all Barnes & Noble Stores as well as Bookstar Stores."
From Part 03
Quotes
  • "As of October 2018, Nordstrom has rolled out a new rewards program — The Nordy Club."
Quotes
  • "In our hometown of Seattle, we house a team of fashion designers whose sole purpose is to create brands for you, inspired by you."
Quotes
  • "Get 1% CASHBACK in points on every $1 you spend. Plus, get even more points with bonus points offers."
Quotes
  • "Bed Bath & Beyond's new $29-a-year membership is actually a really good deal — it can pay for itself in a single purchase."
Quotes
  • "The Nordy Club is intended to broaden customer engagement while increasing earn rates by 50% for members paying with a Nordstrom credit card."
Quotes
  • "Bedding, Bath Towels, Cookware, Fine China, Wedding & Gift Registry"
From Part 04
From Part 07
Quotes
  • "The $128 fee pays for a pair of pants or shorts, the ability to attend curated workout classes and free expedited shipping. "
  • "Retailers are looking to make shopping “experiential” in order to drive sales to brick-and-mortar stores and compete with e-commerce competitors."
  • "“Guests are seeing value beyond just the product,” Lululemon’s CEO Calvin McDonald said on the company’s quarterly conference call about early reviews of the program."
  • "Its expansion into a loyalty program comes as retailers are looking to make shopping “experiential” in order to keep customers coming back. "
Quotes
  • "By offering rewards to buy its product, Lululemon can increase its profit through higher incremental purchases from existing customers while spending less on marketing to win new customers. The extra profit can go toward innovation and building the stores of the future, which, in turn, should entice more people to shop the brand."
  • "The company started testing in Edmonton, where for a fee of more than $100, customers received several benefits, including products made exclusively for the program. Customers also have access to sweat classes and other curated events, in addition to personal development and free expedited shipping for online orders."
  • "Loyalty programs at apparel companies have some of the lowest customer satisfaction rates. "
  • "On that score, it's a good sign that Lululemon has been able to raise the price of the program during testing due to the engagement and response from those who have tried it out."
  • "Lululemon's brand stands for something (e.g., a healthy, active lifestyle) that serves as positive reinforcement for how its customers feel toward the product. When customers feel positive toward a company's brand, it can lead to repeat purchases."
Quotes
  • "Our weekly newsletter is where we stash all the good-to-know information about new product, stories and events. To sign up, enter your email address below:"
Quotes
  • "No, customers just need an email address, phone number and ZIP code to join the Kohl’s Rewards pilot. If you don’t have a Kohl’s Charge card, you’ll still earn 5% Kohl's Cash on every purchase, $10 Kohl’s Cash for every $50 spent during our Kohl’s Cash Bonus events, plus 30%, 20% or 15% off during exclusive savings events throughout the year."
  • "Members will earn 5% in Kohl’s Cash for every purchase they make, or 10% on every purchase if they use the Kohl’s Charge. Additionally, members will receive $10 Kohl’s Cash for every $50 spent during special “Cash Bonus” events."
  • "Elite Members (charge customers who spend $600 or more in a calendar year) will receive free standard shipping when using their Kohl’s Charge and receive early access to Black Friday deals."
  • "Additionally, we are introducing new tools, including mobile, digital, email and even personal reminders from associates at checkout, to ensure they never miss an opportunity to redeem the Kohl’s Cash they’ve earned."
Quotes
  • "More than 95% of Ulta’s Sales Go Through the Ultamate Rewards Loyalty Program"
  • "Ulta invested in technology startup Spruce to develop a services system to facilitate booking salon appointments. The system aims to increase consumer engagement. Spruce is live in Ulta’s pilot store and Ulta plans to launch the new system in a limited number of stores in 2018 and then roll it out to its entire fleet in 2019."
  • "In September 2018, Ulta acquired QM Scientific, an AI startup with capabilities in computer vision, recommendations, natural language processing and visual search. QM Scientific has been recognized by the National Retail Federation as a disruptor in the retail space."
Quotes
  • "Loyalty program. The rewards program now has 31.8 million active members. It grew 14.4% in the past year. It has been enhanced by a new Elite Diamond Tier which is growing faster than planned. New perk offerings have been announced. "
  • "Personalization. Both associates’ relationships with customers and digital innovations stress personalization. Management recognizes that it is important that customers feel comfortable and welcomed, so it is the company policy to call them a wanted guest. "
Quotes
  • "Spend more than $450 and you'll hit the jackpot as an official Platinum member that'll have raking in more $3-off coupons than you can handle. Now, the beauty megastore is adding yet another level to the program: Diamond."
From Part 08
Quotes
  • "Tagline for email Signup: Be the first to know about new products, promotions, technology and more!"