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Customer loyalty rewards to boost franchisee revenue

Sarah Stowe

Better rewards for franchisees and customers with a refined loyalty card for Hairhouse Wareshouse. Image: coxtarget.comA better bottom line for franchisees is one of the benefits of the new Hairhouse Warehouse loyalty program.

The simplified loyalty scheme, Style Society, has been introduced in response to customer feedback.

It’s designed to deliver real dollar-value rewards for members and improved net income for franchisees.

“The business identified huge potential within the loyalty area,” says Sian Paterson, loyalty and local marketing manager for Hairhouse Warehouse.

“After analysis, it was clear that the current platform wasn’t able to deliver on strategic objectives for the business.”

Hairhouse Warehouse went straight to the source, asking customers for feedback on the former loyalty program, TLC – a three-tiered system that rewarded members with specials and discounts on specified products.

“Our former loyalty program wasn’t engaging our customers,” Paterson explains. “It was prescriptive, so customers weren’t valuing the reward aspect, which led to low redemption rates.”

Instead a reward voucher for a dollar figure allows customers to choose how they would like to be rewarded, she says.

Sign-up can be done online or in-store. Members earn a point for every dollar spent on products in-store or online, two points for every dollar spent on services, extra points for purchasing exclusive brand items and benefits for points accrued.

“Our franchisees will also benefit from a program that engages and rewards its customers,” Paterson says. “Customers will shop with us more frequently, and spend more with us, which increases our franchisees’ bottom line.

“Style Society will allow us to deliver our brand personality in-store. It opens a direct channel of engagement, enabling us to talk about our brand and company through a direct line of communication with our customers.”