Daily Insights

Are You Hair for H&M’s New Program?

By: Alizah Asif Farooqi | May 22, 2019

H&M is pulling at consumers’ hair-strings with a new rewards program. Launched last week, the program rewards members with discounts on store products and blowouts at Drybar. Here’s how the twisted approach might play out for the brand amidst a bumpy brick-and-mortar background.

In addition to store and Drybar discounts, members of H&M’s new rewards program will receive access to exclusive events, special sales just for members, and free shipping on orders over $40 depending on their tier. The more you shop, the more perks you get. Once a member racks up 500 points—$1 spent is equal to one point—they are upgraded to “Plus” status. Additionally, those who sign up by May 29th will nab 20% off their first purchase right off the bat. H&M is the latest in a long line of retailers turning to rewards programs to keep consumers coming back as brick-and-mortar continues to take a backseat.

Incentivizing customers is crucial to creating loyalty, especially within millennials—which have been labeled the least loyal of all demographics. But brand discounts are nothing new when it comes to enticing shoppers. Dangling a Drybar discount or two, on the other hand, could convince consumers that H&M isn’t like other retailers. Drybar boasts one of the highest email open rates out of brands studied in Gartner L2’s Digital IQ Index: Hair Care & Color, plus particularly strong engagement on Instagram with consistent posting to Instagram Stories. Additionally, Drybar is not your classic parlor. The blowouts-only bar serves champagne and tea to customers, plays comfort movies all day, and uses products that smell like dessert. In other words, the brand builds an experience—something millennial shoppers love.

H&M’s hairy new initiative isn’t its first attempt at differentiating itself from the pack. The brand debuted its own version of Instagram last month. But both additions share a common thread: an interest in connecting with the customer outside of the typical shopping environment.