GNC Holdings is launching a new Member Price Program nationwide whereby members will have access to GNC’s leading premium brands, cutting-edge product innovation, and highly trained associates every day of the year. GNC's current loyalty program has nearly 7 million active Gold Card members, who will automatically become enrolled in the Member Price Program.
GNC, the largest specialty retailer of health, wellness, and sports nutrition products, plans to promote the new Member Price program with a multi-platform, multi-touch campaign that includes national radio (starts May 6th), customer contacts through direct mail and emails, store signage, and digital and social marketing.
Jennifer Brinker, Senior Vice President, Marketing at GNC, told Loyalty 360 that the rollout of the Member Price Program follows a very successful test-market campaign of up to two years in key markets like Kansas City, Pittsburgh, New York, and Chicago that produced higher store traffic, increased revenues, and strong margins.
“GNC anticipates that the program will expand membership to a larger base of consumers, including new and existing members, as well as lapsed Gold Card holders,” Brinker said.
Brinker shared that the launch of the Member Price Program poses some logistical challenges because “we are in effect converting the supplement industry’s largest loyalty program – the Gold Card already has close to 7 million active members – into the Member Price Program. This is, as you can imagine, an incredibly important business asset for GNC. So, while every Gold Card member will also become part of the Member Price Program, we need to effectively communicate with them on all levels.”
Brinker also noted that the Member Price Program provides members access to GNC’s premium products at a great value every day of the year. The Member Price Program replaces and expands GNC’s Gold Card program, and offers increased convenience and simplified pricing.
“At the same time, we are looking to create excitement about member pricing among non-users or lapsed users because we see a major opportunity to increase the base of Member Price Program members,” Brinker said. “That’s why we are taking a multi-platform, multi-touch approach to managing the process, both for existing Gold Card members as well as consumers who are not currently Gold Card members.”
As a GNC VIP, customers will save up to 50% on all their favorite vitamins, supplements, diet and sports nutrition products, every day of the year. The program’s simplified pricing also makes shopping easier, both in-store and online.
What’s more, GNC is offering free memberships for a limited time in markets in which the Member Price Program is launching.
“The Member Pricing Program gives us a tool to reach across customer demographics, from serious athlete to health & wellness and everything in between, so there is no one niche demographic we are targeting,” Brinker said. “We are targeting everyone. But we do see strong potential in the Baby Boomer category, where the best-price, best-product positioning is compelling among all segments of the demographic.”
As of Dec. 31, 2012, GNC had more than 8,100 locations, of which more than 6,100 retail locations are in the U.S. (including 949 franchise and 2,181 Rite Aid franchise store-within-a-store locations) and franchise operations in 54 countries.
As the Member Price Program rolls out and customers take advantage of every-day member pricing, Brinker said: “We will be able to really micro-target our customer base based on their buying patterns. So the consumer will benefit from a deeper dialogue with GNC – for example, if you bought this diet product you may be interested in this vitamin.”