Loyalty is far from an ancient concept. However, with so many loyalty schemes on offer, brands need a strong point of difference to stand above the crowd and gain long-term commitment. Across regions analyzed by Gartner L2, the U.K. lags with only 19% of beauty brands offering loyalty programs compared to 25% of brands in France. These figures have also remained stagnant year over year.
Across categories in France, skincare brands outpace their peers on both loyalty program adoption and sophistication. Brands such as Clarins and Caudalie use their programs to support product discovery, offering gifts based on the accumulated points. Meanwhile, color cosmetic brands trail, with Bourjois and KIKO being the only ones to reward customer loyalty.
KIKO relaunched its Kisses loyalty program in July 2018, but it is only available until December 2019. This is either an attempt to create a sense of urgency or a sign of KIKO testing the loyalty waters. Testing is a crucial step for brands launching or revamping existing loyalty programs to identify the customer base and assess demand. On functionality, KIKO provides an interactive tool for users to calculate the value of their Kisses (points), and rewards brand engagement. Writing reviews, liking products, completing the personal online beauty profile and following KIKO’s social handles are some actions that earn points.
At the very least, brands with loyalty programs must raise awareness of the offering with a clear and consistent message across all owned assets, ensure site content is correctly categorized for search engine algorithms and leverage email campaigns to increase customer engagement.