Chloe opens loyalty scheme

Launching a loyalty scheme requires a watertight strategy to make sure there are benefits for, and a dialogue with, customers.

When Coty decided to launch a members' scheme for its Chloe brand, the plan was to recruit only existing customers.

"We wanted to deepen the relationship we already had with customers rather than attract new ones," says Coty Prestige digital marketing manager Hollie Adler.

EXECUTION

To ensure it reached customers, Coty gave them the option of signing up to its members' scheme following the purchase of a Chloe product in-store. It also used the sign-up process as an opportunity to collect data from the customer in order to tailor content to members.

If a customer declined to join in-store, they were directed to a website, where they could also sign up in return for providing personal data. "All the communication with members is done through email, so we collected basic information such as region, name, birthday and email address," says Adler.

This information was married with the customer's purchase history. The customer then had access to hidden online content that corresponded to the Chloe products they had bought in the past.

All of the online content available to members was derived from magazines that fit the profile of the target audience. The National Magazine Company's monthly title, Harper's Bazaar, produced content about the Chloe brand, fashion and lifestyle. Coty also signed up publisher Conde Nast.

Coty research found that women were more likely than men to buy a fragrance for their partner. The vast majority of new members to the scheme are women, so the online content was aimed at them.

Monthly emails were sent to members to alert them to new products and competitions. Adler says: "Frequency of purchase varies from customer to customer. Most members probably buy a fragrance every six months, either replacing their favourite scent or trying a new product."

A birthday email was sent to members to give added value to the scheme, and exclusive samples were offered ahead of a product's launch. All emails were revamped to make them easier to read and navigate.

"Positive Thinking proposed the new layout of the email. It makes the campaign stand out and people really recognise it when they see it in their inbox. It also gives the campaign something a little bit different and makes it feel more exclusive," says Adler.

RESULTS

More than 2,000 people signed up to the members' scheme in its first three months. "We run schemes for other brands, and used our experience to make sure the Chloe scheme was successful. The response was the biggest of all our prestige fragrances, such as Vera Wand and Marc Jacobs," Adler says.

The Chloe email campaign had a 13.7 per cent response rate, and only four people had unsubscribed from the scheme by October.

Brand: Coty Fragrances
Brief: To launch a membership scheme and promote better CRM
Target audience: Women aged between 28 and 40 who have bought the Chloe
fragrance
Supplier: Positive Thinking

 

POWER POINTS

- Coty set up a loyalty scheme that focused on existing Chloe customers, rather than trying to attract new ones

- Purchase history and other data were used to direct customers to online content relevant to them. Email alerts were also sent to members.