Why we won: P&G Haircare – 2017 Loyalty Magazine Awards winners tell their stories

P&G Haircare

Driving loyalty with deep value discount

Winner of Best Coupon/Voucher Based Loyalty Programme – Virtual or Paper

Why we won: It is great to see an international FMCG brand addressing loyalty, and this is the best evidence of achievement in this category.

 

Baby and Beauty is a strong performer for UK supermarket Sainsbury’s. Overall customer spending in the category rose by 1.6% last year, driven by customers shopping more frequently.

The only sector within the category to buck the trend was Haircare which saw a 4.3% fall in expenditure. Haircare accounts for 12% of total category spending so reversing the decline would drive considerable growth.

P&G Haircare is a major player in the category with four brands – Head & Shoulders, Aussie, Pantene and Herbal Essence – and it introduced a loyalty campaign at Sainsbury’s to combat the category decline, return customers to former buying habits, and change their long term behaviour. In partnership with marketing agency i2c, the programme drove growth by championing P&G brands and increasing customer spend by making them feel rewarded through a personalised customer journey.

The programme focused on driving long term customer loyalty by providing real value to customers, utilising Nectar point rewards rather than relying on heavy, mostly multi-buy (3 for 2 type) promotions.

An enjoyable customer experience was vital to maintain engagement, so an innovative way to communicate the offer was needed. This was achieved via the technology from Catalina that manages the coupon printing in Sainsbury’s. It provided the ability to count the number of products a shopper bought of the target SKUs (stock keeping units) after they receive an initial offer notification coupon. It then issued a reward coupon when the required number of products has been achieved.

Reminder coupons were printed at key points on the customer journey to keep them updated about how many products they had bought so far, enabling an extremely personalised and relevant experience for each customer.

The campaign reversed the category decline for Sainsbury’s. Total Haircare aisle sales grew by 6.8%, demonstrating that most of the P&G sales were incremental and not switched from other brands

Overall sales in Baby and Beauty went up by 2.9% with more customers being attracted to the aisle, driving wider shopping activity in the category.

More than a quarter of customers completed their reward journey, meaning that their purchase of Haircare products had reverted to (at least) their pre-decline spend.

P&G Haircare  worked with marketing agency i2c on this initiative.

Related Posts

International Loyalty Awards 2023

Loyalty Trends From The International Loyalty Awards Finalists

The International Loyalty Awards recognise and pay tribute to the brands building lasting and profitable customer relationships. This special global competition brings together the leaders in loyalty, to celebrate innovation, creativity and sheer brilliance. The industry awaits in anticipation for the winners’ announcement on 13 June 2023 at the International Loyalty Awards’ gala evening –

Read More »
International Loyalty Awards 2023

List of Loyalty Royalty 2023 announced!

Impressive list of upwardly-mobile achievers

 The 30 under 40 list of Loyalty Royalty has been running since 2018 as part of the International Loyalty Awards. This annual competition  has highlighted the incredible talent flourishing in our industry. These are the movers and shakers that are the lifeblood of our profession. They are the ones making sure customer loyalty stays fresh and inspiring.

Read More »
News

Breaking out of Closed-Loop Loyalty

Why Open-Loop Programs are the Future of Customer Retention In recent years, industries across the board, from retail to travel to banking, have jumped on the loyalty program bandwagon, keen to incentivize customers, increase engagement and foster brand-to-customer relations. Given that recent studies have shown that 57% of consumers spend more on brands to which

Read More »
International Loyalty Awards 2023

Removing friction to increase customer participation

Payment Loyalty redefines loyalty for physical retail businesses. By eliminating all the hurdles to customer engagement, reach is increased by an order of magnitude. With no extra cards, no mobile apps and no requests for customer data, we align in-store loyalty with the frictionless in-store experience customers now expect.

Read More »

Prime Sponsor

Platinum+ Sponsor

Diamond Sponsor

Category Sponsor

Hospitality Sponsor

Category Sponsor

Category Sponsor

Download the International Loyalty Awards Finalists report and learn more about the brands that are top of their game in loyalty for 2023

Loyalty Magazine

Read the latest edition of Loyalty Magazine Online.