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Private label credit cards are popular among consumers because they frequently offer some of the strongest value propositions on the market. It’s not unusual for a consumer to sign up for a card while visiting a retailer and receive a sizable discount on a purchase made at the time of activation. Now, a major brand in the beauty space is embracing the trend to add value to its loyalty program.
Sally Beauty has announced that it has signed a multi-year agreement with Alliance Data’s card services business to launch a new private label credit card program for both Sally Beauty Supply and Beauty Systems Group. The program is intended to benefit the brand’s retail and professional customers by providing them more opportunities to earn rewards for purchases of their favorite hair color, hair care, and other beauty supplies. By partnering with Alliance Data, a global provider of data-driven marketing and loyalty solutions, Sally Beauty Supply will benefit from enhancing its existing Sally Beauty Rewards Loyalty Program, which currently has over 15 million active members.
In addition, Beauty Systems Group will benefit from stronger customer relationships and increased customer loyalty by providing its professional customers with additional payment flexibility to help them run their business. The private label credit card program is expected to be piloted in select stores in the United States during the second quarter of fiscal year 2020, followed soon by a national rollout to all US stores and e-commerce platforms.
“We are thrilled to partner with Alliance Data and we are excited about the value that a private label credit card program will bring to our company by rewarding our customers with increased benefits when they shop with us,” says Chris Brickman, President and Chief Executive Officer. “The launch of this new program will enable us to better serve our customers’ needs and preferences and continue to push our strategy forward by enhancing customer loyalty and driving sales.”
It’s great to see that Sally Beauty is a brand that is refusing to rest on its laurels. Obviously, any loyalty program with 15 million active members has thus far succeeded in communicating a strong value proposition and keeping its consumers engaged. It will be interesting to see whether perks will appeal to current active members or more to prospective loyalty members.
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