Fredrik & Louisa’s results provide a firm confirmation of the significance of a good loyalty program’s effect on revenue growth and margins.
Jan Høgetveit, CEO of Diller
Strong results for Fredrik & Louisa retail chain
The beauty chain Fredrik & Louisa has conducted analyses of purchase data. They observe the following results:
- 70% of customers are identified, known customers
- The members’ basket has 1.8 more products
- 15% of members shop again next month
Fredrik & Louisa is a nationwide cosmetic retail chain with an online store and 50 physical locations in Norway. Since its inception in 1984, they have offered luxury products from leading brands in the beauty industry. In April 2021, they began collaborating with Diller. Here you can read more about the chain’s thoughts on customer loyalty.
The key to customer loyalty is identifying the customer at the point of purchase
It is only when a new customer is identified and enrolled in the loyalty program that a store has the legality and possibility to communicate directly with the customer via SMS or email. The sketch below illustrates how costly it is to attract new customers to the store without having a loyalty program as an upsell and customer retention program in place. The better alternative is to let Diller serve as an owned marketing channel that increases sales and profitability.