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GNC’s New Loyalty Program Delivers Positive Results

GNC’s Revamped Loyalty Program is Attracting New Customer, Increased Transactions and More!

GNC Loyalty Program

In 2016, GNC launched a major rebranding effort to magnify customer experience and customer engagement with a new loyalty program, One New GNC. The company now offers a single price both in-store and on GNC.com, replacing multiple pricing structures across channels and membership levels. The new loyalty program is designed to give consumers an easy to use incentives to shop GNC.

During the 2017 second-quarter earnings call, CEO Robert Moran, indicated growth has been slow but he is excited about the goal of delivering meaningful profitable growth.

“When we designed the One New GNC, we did it with the customer in mind. We were making bold changes in investments to leverage the strength and advantages inherent in our model, fix what was broken and improve the customer experience. During the second quarter, we saw those improvements begin to pay off and made good progress towards our goal of delivering meaningful profitable growth. It is still early days and we have work to do, but it looks like we are headed in the right direction.”

Performance of One New GNC:

  • Transactions for the quarter were up 12.3%
  • Building on the growth they saw first quarter of 2017
  • Attracting new customers to GNC, who are shopping more frequently

“We’re also encouraged by the performance of our original pilot stores, which are outpacing the rest of the chain, in both transactions and average ticket growth, and comp sales for the pilot stores in the second quarter were positive. In many ways, this business is bucking the retail trend, with transaction growth that’s well above the APT Retail Index year-to-date.”

What’s different about One New GNC Loyalty Program?

GNC eliminating the two-tier pricing structure and excessive promotions in BOGOs and reducing prices on items tied to price perception.

“Customers reacted positively and quickly and the sales trends we’re experiencing suggest that they are continuing to respond,” he explained. “Our revamped loyalty program continues to perform well and are giving us access to new customers, improving frequency and creating a foundation for powerful integrated marketing and customer connections.”

As of the end of the second quarter of 2017, 7.3 million consumers had joined the myGNC Rewards Program and there were approximately 237,000 PRO Access members.

“After six months, we continue to believe myGNC members are on track to visit six times a year, compared with Gold Card members who visited just four times in an entire year,” Moran said. “PRO Access, our premium loyalty offering, has enrolled nearly 325,000 members since its launch in March. Our core and most profitable customer, the health enthusiast, is responding well to the program, which includes offerings tailored to their individual interest, purchase habits and needs.”

In the second quarter, PRO Access members visited twice as often, purchased two times as many products, and spent significantly more.

“Enrollment in the PRO Access program is trending a bit below our expectations, and we are now implementing a bonus point offering that gives PRO Access members instant gratification,” Moran added. “So far, we’re seeing improvement from this incentive with limited margin impact. PRO Access and myGNC also are growing the ranks of contactable customers. Today, we have three times as many customer email addresses than we had six months ago. We’re gathering data that can help us truly understand our customers and developing the platforms and expertise to tailor our communication, regimen recommendations and offers to their specific interests and needs. We designed and invested in the One New GNC to bring customers back to our model, return this business to positive comps, and ultimately, to deliver profitable growth and regain our position as a market leader. In the second quarter of 2017, we made good progress toward those goals.”

MyGNC Rewards is a free, new way to be rewarded—and it comes with some pretty sweet perks. Every time you make a purchase, you get Rewards Points that you can turn into Cash Back Rewards.

myGNC Rewards vs. myGNC PRO Access programs:

GNC Rewards Benefits

Source: GNC

Who is Customer Insight Group?

Customer Insight Group is a Colorado-based loyalty marketing agency leading the way in helping companies engage, keep and grow profitable customer relationships.

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Mary Shaw