Very important purchasers: A.S. Watson reveals VIPs spend eight times more than average members

By Amanda Lim

- Last updated on GMT

Very important purchasers: A.S. Watson reveals VIPs spend eight times more than average members
Health and beauty retailer A.S. Watson is upgrading its VIP membership with “unparalleled levels of rewards” as an investment in loyal VIP customers who spend eight times more than the average consumer.

The group announced that the new VIP loyalty programmes will be rolled out globally, and plans to have the same programme in all of its 24 markets by early 2019.

The new VIP programme is an additional, invitation-only tier which aims to reward top customers with personalised perks such as product previews, early access to sales and promotions, and additional bonus points.

A cut above

From its own data analysis and insights, the group found that two-thirds of VIP consumers tend qualify for the program the year after. The company noted that spending for newly qualified VIP members this year increased by double-digits, pushing it find ways to retain these highly valuable consumers.

“We appreciate our customers, no matter how much they spend in our stores, and we know they love to feel valued,” ​said Malina Ngai, Group Chief Operating Officer of A.S. Watson Group. “Our existing loyalty programmes reward everyone with great offers, but our VIP programmes thank our most loyal customers for shopping with us with amazing benefits and even more tailored rewards.”

The group adds that the aim of the membership upgrade is to boost attachment to their retail brands and encourage consumers to shop more often for even better rewards.

With the new VIP Programme, we can connect with our most loyal customers more closely, intensify our relationship with them and foster their emotional attachment to us.”

The price of loyalty

The company said it did not get to be the world’s largest international health and beauty retailer without their consumers.

As such, the company believes loyalty is “everything”,​ and it is reflected in the investments it has poured into its customer relation management (CRM) programmes in all its key operating markets in Asia and in Europe.

 “VIP members expect that we can closely connect with them and deeply understand their needs. They are increasingly making decisions based on how a retail brand makes them feel, not just the products and deals they find here,” ​said the company. “We offer money-can’t-buy experience in different markets, this enables us to engage with our VIP customers through our online and offline channels, in order to boost customer connectivity.”

Converting sales to knowledge

With four billion customers each year and 30 million items sold every day around the world, A.S. Watson Group collects on average 4,300 terabytes of customer data every three years.

With DataLab, which was launched this year, A.S. Watson is able to convert the mountains of data into useful insights which help them understand how to build closer relationships with their customers.

“[DataLab] does not only help us generate customer insights that are useful in enhancing retention and increase customer spending but also enables the group to make smarter decisions, blending science, experience and intuition,” ​said Ngai.

“With cutting-edge data technology, we are turning transactions to interaction and that is how we are staying connected with our customers.”

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