Sally Beauty on Tuesday unveiled a new nationwide Sally Beauty Rewards program, replacing its Beauty Club Program, after successful pilots in Florida and Georgia that have run since last year. The new program features a "more personalized experience with more bonuses and exclusive perks," including certificates that can be used like cash, the company said in a press release.
Beauty Club members are automatically enrolled in the new system with a $5 reward plus a set number of points based on their past activity. There's no annual fee, and new members receive a $5 certificate just for joining. All members receive a $5 certificate for every 500 points ($50 spent) along with double points during their birthday month and other personalized deals and offers throughout the year.
The program is tiered, with an Elite Membership for customers that spend $200 in a year, where members earn 25% more with every dollar they spend and get free shipping on online orders, the company also said.
Sally Beauty joins several retailers, including Target, Macy's, DSW and rival Sephora, in enhancing its loyalty rewards programs this year, saving some of its best bonuses for its biggest spenders.
The retailer had to catch its program up in a competitive market known for effective loyalty programs, including both Ulta and Sephora, the latter of which just enhanced its already robust loyalty program earlier this year. Online furniture retailer Wayfair, meanwhile, has gone against the tide in unveiling a membership program that requires an annual fee of $29.99.
The changes from various corners lately come as research shows that shoppers haven't found rewards programs all that rewarding. Just 32% of customers find brand offers relevant, something that many retailers were missing, considering that 58% think they are sending out relevant offers, according to a survey by Oracle. That study also found that 69% of customers want personalized offers based on their preferences and 74% want swifter rewards rather than a slower accumulation of points.
There are limitations in many rewards programs that are preventing signups, according to Kobie Marketing's recent "Loyalty in the Age of the Connected Consumer." More than a quarter (26%) of consumers surveyed said they won't join a loyalty program if companies require too much information and 22% said they're deterred if it takes too long to earn and redeem points. Points are the point, according to that study, which found that a great majority (86%) say they join up primarily to collect and redeem points.
But many consumers are willing to trade personal information for points, according to a study by Bond Brand Loyalty, which found that 87% of loyalty program members are open to having their activities and behavior "watched, monitored and tracked" in exchange for personalized rewards. That makes effective programs a rich source of invaluable customer data.
In the company's announcement, Chris Kobus, group vice president, marketing and digital for Sally Beauty, suggested that the retailer's new program will indeed be an effective one, calling the loyalty revamp "a game changer."