You asked for it! Here’s our next instalment of our Singapore Loyalty Landscape Review, fast following last month’s review of the Top 7 F&B Loyalty Programs in Singapore.
What’s going on in the beauty sector and who’s doing the best job at making sure that their best customers keep coming back?
These are the 7 beauty loyalty programs in Singapore that you need to know about.
We enjoyed doing the research for this article, but along the way realised that while the beauty space (both multi-brand and single-brand) is filled with loyalty and membership programs, many of them can do a lot more to provide rewards that offer more value to their customers – like their friends in the F&B industry.
Another interesting thing we noted was that beauty loyalty programs are stuck in the 00’s – with an over-reliance on e-mail subscriptions and physical card memberships over mobile apps. In fact, only one beauty retailer on this list has a mobile app.
Here are some of the brands that understand that growth doesn’t only come from acquisition. In a downturn economy, it’s more important than ever to focus on retaining customers that have bought from you already – after all, it costs 5 times more to acquire a new customer than to retain an existing one.
Let’s start with a big player in the beauty scene – Sephora:
3 Beauty Loyalty Tiers: White, Black and Gold
Of those ‘in-the-know”, Sephora is well known for its beauty loyalty program, and might even have one of the most iconic loyalty programs in the beauty retail market at the moment. Sephora is the first-choice for many beauty and skincare fans to get their fix because of the range of brands on offer.
With their three-tiered loyalty program, known as Beauty Pass here in Singapore, $1 spent earns you 1 and points are redeemable when you reach 100, 300 or 500. Members also get a welcome bonus for every tier they reach in the form of a one-time discount.
White Card Perks:
- Welcome Bonus: $10 off a one-time online purchase with a minimum spend of $120
- This equates to an 8.5% discount, but the value of the discount decreases every $ you spend over the $120 base limit.
Black Card Perks (Accumulate 300 points within 12 months):
- Welcome Bonus: $10 off a one-time online purchase with a minimum spend of $90 and Sephora Travel Pouch
- This equates to an 11% discount but the value of the discount decreases every $ you spend over the $80 base limit. The retail value of the Travel Pouch we estimate at $20. This amounts to only a 3.3% discount overall (as customers have to spend $300 to get this privilege)
Gold Card Perks: (Accumulate 1500 points within 12 months):
- Welcome Bonus: $25 off a one-time online purchase with a minimum spend of $150 and Sephora Makeup Pouch.
- This equates to a 17% discount but the value of the discount decreases every $ you spend over the $150 base limit. BUT only a 1.7% discount overall (because you have to had to spend $1,500 to get this privilege.)
- 100 points can be redeemed for a ‘Deluxe Sample’ of a sample-sized product from a higher-end brand (valued between $15 and $25)
- 300 points can be redeemed for 10% off your next purchase
- 500 points can be redeemed for a Curated Beauty Set (valued between $50 and $100, depending on the set you redeem)
What We Think: At first glance, this beauty loyalty program looks like a great way to keep fans coming back to Sephora. It’s easy to understand and you get an immediate benefit for joining (like a free brow service by Benefit); however, the program offers relatively little reward for customer spend.
In fact, unless there are hidden benefits we don’t know about, it doesn’t seem to treat the most loyal spenders very well.
But because it’s so easy to join and because of the immediate perk, it’s a brilliant way to capture customer data for ongoing communication – they send out at least 3 emails per week. Research shows that multiple emails per week helps keep brands top of mind, and top of mind brands generally tend to command a higher share of wallet.
They could do better by combining it with a dedicated membership app – mobile is the smartest move forward, and members will benefit from having all their loyalty information on their mobile at all times.
2 Beauty Loyalty Tiers: Club and Fan
This is by far the best program we’ve come across in Singapore in terms of rewards – it’s a winner.
And you have to be pretty cold-hearted not love their company mission: helping save the world by creating fabulous beauty products. The Body Shop has a very dedicated following of conscious beauty buyers who they reward royally with their cornerstone Love Your Body membership program.
To join this 2-tiered program, customers must spend at least $40 at any Body Shop store. This gives them the basic, or ‘Club’ membership. A Member is upgraded to the ‘Fan’ tier with a spend of $400 within a year.
Every purchase earns Club members points 1 point per dollar. Fans get 50% more points, so $1 = 1.5 points. For every 50 points accumulated (equating to roughly a $50 spend for Club and $33 spend for Fan members), members are entitled to $5 off a regular-priced item.
Love Your Body members also receive discounts on all regular-priced items throughout their membership – 10% for Club, and 15% for Fans. Throughout the year members also have access to exclusive discounts, ranging from free skincare packs with a minimum spend, bonus points or storewide discounts and birthday treats.
What We Think: The Love Your Body program is the best we’ve come across as the rewards are immediate and significant. The periodic promotions add even more value to the membership. Via the mobile app, members are always able to know which store is closest and how many points are needed to cash out the next voucher value (vouchers are available in denominations of $5). So if you shop at the Body Shop, this is definitely a must-join!
2 Beauty Loyalty Tiers: Regular and VIP
This popular Korean beauty chain has great skincare and beauty products, and their cardless membership program is designed to keep their fans coming back. Available in two tiers, Regular and VIP, members receive points for every dollar spent (1 point for Regular, and 2 for VIP), and can redeem these points for rewards. To become a VIP member, customers have to spend $250 at The Face Shop within a single year.
At first glance, the returns are low as every 50 points accumulated gets members $1 off their purchase, which leads to a small 2% rewards return for members. However, the Face Shop does offer additional benefits like bonus points (2x and 4x bonus points as a birthday privilege for Regular and VIP members respectively) and exclusive welcome, birthday and VIP gifts.
What We Think:It’s a shame that there is no digital app, because this would be a great way to inform their loyal customers to the new Korean products that come to the market and they could be more generous. Regardless, we’re happy they are at least thinking about their loyal customers!
3 Beauty Loyalty Tiers: Welcome, Premium, VIP
With six branches in the most accessible areas of Singapore, Innisfree’s presence as a Korean beauty powerhouse has been cemented. With high quality yet inexpensive beauty, skincare and nail products, Innisfree has become a must-have in anyone’s beauty collection.
Innisfree’s membership program is very accessible – there’s no minimum spend to join, and members are upgraded to Premium status after a total spend of $120 within 12 months. They are upgraded to VIP status after a spend of $250 in 12 months. Collecting points is more rewarding the higher your rewards tier – Welcome members get 1 point per dollar spent, Premium members 1.5 points per dollar, and VIP members 2 points per dollar.
The redemption rate for members is almost exactly the same as The Face Shop’s redemption program – 50 points lets members redeem $1 off their next purchase. This 2% return seems consistent across the beauty industry, but is a little low when compared to brands like The Body Shop or Sephora.
What We Think: The brand could do better with a mobile app to keep their loyal customers engaged and on-the-ball with their points redemption, but we love the effort Innisfree has put into rewarding their fans. Let’s hope they revamp their offering. It could be a good way to further establish dominance in the category.
3 Beauty Loyalty Tiers: Basic, VIP, VVIP
Laneige is a well-known higher-end Korean beauty brand that focuses on skincare – their Water Sleeping Mask is a favourite in the beauty community, with many customers swearing by the product. With any in-store purchase, Laneige offers a free Basic membership to all customers. The VIP tier can be reached with a minimum spend of $800 in a calendar year, and the VVIP with a spend of $1200 in a calendar year. All members receive one point per dollar spend, and double the points on their birthday month (along with a 20% discount on their first purchase of the month!)
Laneige offers point redemptions for any item in-store. VVIP members seem to have it the best – with their membership, they receive exclusive gifts, a $100 Laneige voucher and a complimentary makeover session (also available with VIP membership) worth $60. Points expire after a year, which encourages their customers to actually reward themselves instead of saving and hoarding points.
What We Think: Generally, people buy skincare every two to three months, so having a basic membership account could prove beneficial to the average customer. However, Laneige products tend to be a little more expensive, and chances are high that customers who travel often will end up buying their skincare products at Duty Free counters – therefore excluding them from this membership process. Everyone loves a deal, so this could potentially decrease the perceived value of the loyalty program.
FauxFayc is a homegrown brand that has gotten a lot of attention in the press for it’s Fauxlash Mascara Duo – priced at $39, the mascara promises to increase length and thickness by 300%. A big claim, maybe, but definitely one Singaporeans are absolutely loving.
FauxFayc has released a membership program to give back to their loyal customers with exclusive member-only benefits and promotions. To join the #FFMember program, customers must spend $80 in a single receipt at the physical outlet in Singapore, and will receive a physical membership card. The rewards system is basic – one point per dollar spent.
200 points is worth a 10% discount off one purchase, and every tier from there offers a product reward. The value benefit is between 11% and 22% – members can redeem products worth up to $200 at intervals of 250 – 1000 points.
What We Think: The unique thing about the #FFMember program is that it favours product rewards over discounts – something they can afford to do. This is a good way to get new products into loyal customers hands who might in turn become FauxFayc’s best advertisements if they fall in love with the products. Peer-to-peer recommendations are a gold mine. Plus, by giving products instead of discounts, FauxFayc can be in control of how much margin they give away– which makes good business sense.
2 Beauty Loyalty Tiers: Pink Rewards, VIP
SASA is a cult favourite among many Singaporeans – they offer brands that are hard to find in most beauty retailers (The Balm Cosmetics and GOSH come to mind), and often hold pop-up sales around malls in Singapore. What not many people realize is that SASA has a membership program that offers members exclusive monthly promotions and offers upon joining. Joining the P!NK membership program is free, and a VIP membership costs $120 (redeemable if you spend $120 in a single receipt). Members also receive double points during their birthday month.
SASA offers monthly promotions to their members that reminds us of airline loyalty programs – members can redeem products for both points and cash (like this image below:)
SASA’s point-earning value is one of the lowest on this list, with every $5 spent giving you 1 point. Looking at the poster above, redeeming a an eyeliner pencil worth $35 would end up costing the member $10 + 20 points – essentially $120.
What We Think: An interesting thing about SASA rewards is that all points expire on the 31st of March each year, regardless of when you signed up to be a member or how many points you’ve accumulated. This might be a little short-sighted for the brand – it’s difficult enough to earn points with such a low value benefit without worrying about membership expiry dates. We think that while the brand has done well with thinking about loyalty, members would love to have a more valuable return on their loyalty, and perks that don’t require them to spend money to redeem.
SUMMING IT ALL UP
More often than not, customers stick to a brand that’s served them the best – so it’s easy to see why these 7 beauty brands have decided to reward loyal fans with loyalty programs. Some do it better than others, and many of them can definitely improve.
In this connected age, keeping their customers engaged with their brand need not be difficult, and the one thing we would love to see introduced across all these brands are mobile apps. Having an app for your brand’s rewards program can drive engagement while keeping customers aware of just how far they’re into their favourite programs.
At Riverview, we’re all about mobile-first customer retention solutions. Our SaaS solution has helped our clients increase their customer’s lifetime value and revenue contribution by giving them the ability to track what types of communications and offers are most effective at shifting behavior. We put your customer’s experience at the center. Reach out to us for a free demo, or click here to download our Product Edition Sheet.