With a net gain of only 30,000 active members in four years, and no significant additional sales penetration, the ten-year-old Farmers Beauty Club was stagnating. Then in 2010, Farmers made major changes that included a new dynamic segmentation model, the introduction of new lifecycle elements, revamped creative, and the widening of the rewards offering.
Beauty Club now has a new lease on life with membership rising by an average of 8,000 per month, with active members up 26.43% year-on-year. Category sales in Beauty are up 6% year-on-year and a whopping 71% of all Beauty World sales are now made to members (up 12% from 59% in 2009). And 49% of Beauty Club members are now shopping monthly for fashion compared to 29% in December 2009.
Targeted reactivation campaigns have achieved up to a 35% response rate, and sales ROI on catalogue/statement DM activity has doubled from $15/$1 to $30 for every $1.