Dive Brief:
- Bath & Body Works’ active loyalty members drove 4 in 5 sales in the United States, CEO Gina Boswell said on a Q1 2024 earnings call Tuesday.
- Bath & Body Works grew its active loyalty member count by more than 18% from the first quarter last year to 37 million in the first quarter of 2024, according to the retailer’s Q1 2024 earnings presentation.
- Members are overwhelmingly satisfied with the program, too. The loyalty program ended the quarter with a 93% satisfaction rating, Boswell said.
Dive Insight:
Bath & Body Works is looking to increase the ranks of its loyalty program for sustained growth.
“We expect new customers, existing customers and reactivated customers alike to really benefit from the loyalty program,” Boswell said.
New customers made up 2 in 5 enrollees to the loyalty program in the quarter ending May 4. The retailer plans to drive more enrollment through exclusive and early access events and point accelerators, which were first introduced in the fourth quarter last year to foster reward redemption.
The retailer is also using machine learning algorithms to analyze purchase behavior, social engagement and segmentation to predict when a one-time customer might make a second purchase. The company is then targeting those customers with personalized offers.
“As customership grows, it will enhance our potential to both drive short-term performance as well as sustain customer lifetime value,” Boswell said.
Customer loyalty wasn’t limited to a specific program, however. The brand’s customer retention rate this quarter was at its highest since 2021, which was a “high watermark” for the brand, according to Boswell.
