In the Consumer Packaged Goods (CPG) arena, there is quite often various stop-and-start, promotion-based campaigns without optimizing the value exchange, according to Scott Robinson, Senior Director, Loyalty Consulting & Solutions, Maritz Loyalty Marketing. But for the world renowned venerable brand Johnson & Johnson, its Healthy Essentials loyalty program goes beyond monetary means to impact customer behavior.
During their session at the 7th Annual Loyalty Expo, presented by Loyalty360 – The Loyalty Marketer’s Association, Robinson and Bullock discussed why non-traditional industries are embracing loyalty as a competitive differentiator and critical tool for growing their businesses by building consumer advocacy.
Robinson told attendees that loyalty “makes us tick”, but many brands rely on monetary means to impact behavior (bonuses, discounts, coupons) that don’t foster long-term values.
Healthy Essentials, an umbrella brand used by Johnson & Johnson, launched in November 2012 and relaunched in November 2013, Bullock said. Johnson & Johnson’s corporation includes about 250 subsidiary companies with operations in more than 57 countries and products sold in more than 175 countries.
Ian Armour, Group Brand Director Analgesics & Healthy Essentials, Johnson & Johnson, appeared via video during the session, and said Healthy Essentials allowed Johnson & Johnson to aggregate under one mega-brand.
“The objective is to give customers information,” Armour explained. “We find that consumers are looking for more than coupons. Consumers want to engage with the brand more than with coupons.”
Bullock said for more than 120 years, Johnson & Johnson has built equity and trust with its consumers.
“There is high awareness, but people don’t associate us with our large portfolio of brands,” she said. “This is a huge growth opportunity for us.”
Bullock said one of the programs is to identify unique customers and engage them in ongoing relationships. She said nearly two out of three people are more likely to buy a brand if they know it’s from Johnson & Johnson.
For Johnson & Johnson customers, the goals and objectives are to:
• Increase Johnson & Johnson product purchase frequency
• Increase basket with additional Johnson & Johnson products
Optimize value exchange by:
Identifying unique consumers
Affinity
Advocacy
Transactions
Grow Basket
Share of Wallet
Marketing Efficiency
Relevant Experiences
Satisfaction
Status
Rewards
Community
Participation
Needs Fulfillment
Non-monetary benefits are sustainably differentiating
Specifically, members earn Essential Rewards Points and redeem those points for free Johnson & Johnson Gift Product packs. Each product pack contains a variety of products and is worth about $25 each.
Here are some ways to earn points:
5 Points just for signing up
2 Points for printing Healthy Essentials coupons (limit 2 per week)
2 Points for every Healthy Essentials coupon you redeem at retail stores
10 Points when you complete your Healthy Essentials member profile (one-time)
10 Points when you complete your Health Grade (one-time)
20 Points when you sign up for the Healthy Essentials Listens Panel (one-time)
When a member accumulates 100 points, he or she can then redeem them for their choice of gift pack. Below are some of the available gift packs:
On The Go Bundle: Listerine Cool Mint (95mL), Neutrogena All in One Make-Up Cleansing Wipes (7’s), Band-Aid brand Fabric 8’s Travel Pack, Polysporin TO GO™ Antiseptic/Pain Relieving Spray (7.7ML), Tylenol Regular Strength 325 mg eZ Tabs (12’s), Aveeno Dry Shampoo
Bundle Of Joy: Infant 15 mL Tylenol Dye Free White Grape Drops (80mg), Penatan Creamy Diaper Rash Treatment, Johnson’s Natural Nourishing Baby Lotion (266 mL), Johnson’s Baby Powder (113g)
Just For Kids: Junior Strength Children’s Tylenol Fastmelts, Band-Aid brand Muppets (20’s), Band-Aid brand Disney Mickey Assorted (20’s), Johnson’s No More Tangles Detangling Spray (300mL)
Refresh & Revitalize: Neutrogena Foot Cream (56 mL), Neutrogena Norwegian Formula HandCream Fragrance Free (50 mL), Aveeno Daily Moisturizing Body Wash (354 mL)
Armour said the company used a lifecycle management approach toward the loyalty program, offering new products to members. Robinson shared the following statistic from Maritz research: 94% of loyalty program members want to receive communications.
Bullock said the Healthy Essentials member engagement strategy hinges on earning the trust and appreciation of Healthy Essentials members.
“We’re giving them information when they’re looking for it,” she said. “Each of the emails is targeted and we’re making sure were sending personalized and relevant content.”
Armour pointed to three critical points for success: internal alignment; a clear understanding of your target and your value proposition; and a great agency that brings great strategic thinking and technology.
Bullock said that the program has exceeded its acquisition target by 132% and one coupon is redeemed every two minutes. She shared an amazing statistic: 93% of Healthy Essentials members want to receive program communications at the same or higher frequency.
“CSR is integrated in the brand and it’s been part of the brand since it’s existed,” she said. “Optimize the value exchange. Give consumers a reason and a voice in your program. Relevance equals member satisfaction.”
Loyalty Expo was held March 17-19, 2014, at the Hyatt Regency Grand Cypress in Orlando, Florida.