Madison Reed, an American brand of hair color and hair care products, announced its foray into loyalty programs earlier this year by offering memberships to Limitless. The company has experienced 40-50% growth across two tiers, with the Limitless Pro and Limitless Premier programs showing significant growth since the launch.
Loyalty programs grow as consumers want more from brands
Madison Reed started as an at-home solution for women to color their hair. With the expansion of its omnichannel model, the company opened salons across the U.S. market to meet the needs of women who want to experience the product in a salon setting. The company can deepen its customer relationship by providing additional perks and benefits with its loyalty program.
Loyalty programs across the globe have been growing at a rapid rate, with a market value of $5.6 billion in 2022, 23% higher than in 2021. According to projections, the value is estimated to grow four times by 2029, reaching over $24 billion. Consumers pinched with high prices and the growing cost of living expenses will continue to look for ways to save money or gain better access to products and services, and some loyalty programs can fit the bill.
The CEO believes customers deserve better
The company’s founder and CEO, Amy Errett, provided insights into the reasoning behind the launch and why delivering the highly requested membership was important. “While our long-standing customers have been asking for this for a while, we wanted to wait until we had enough color bar (salons) and product assortments to deliver a program that our customers deserve,” discussed Errett in a personal interview. Providing excellent value and service to its customers were key drivers in the new program. Limitless membership includes discounts on products and services, early access to new products, and access to color bars for root touch-ups.
The hair color business is nearly recession-proof as women are always willing to spend money coloring their hair, and it has become an essential routine instead of a nice-to-have. The majority of the U.S. women who color their hair do it on average every six weeks. “The service we provide in our salons meets the customer’s needs with excellent value whether she colors her hair all of the time or some of the time,” said Errett. The loyalty program allows members to customize their preferences with highly trained, well-compensated stylists, making the service a high-value offering.
Service and product assortments drive brand loyalty
For more than eight out of ten consumers, the top three factors driving brand loyalty in the U.S. market are good service, a good range of product assortments, and product availability. The other factors deemed important to critically important were robust data privacy policies and the brand’s effective digital assets (mobile app, website). Seven out of ten respondents stated having a loyalty program was also important. The survey was conducted last year by Econsultancy (1561 respondents).
Limitless extends Madison Reed’s ethos of giving customers better products, services, and ingredients. The company prides itself on delivering consistency in color and service across all its platforms and through its omnichannel approach. The color formulas are exact and free of harmful ingredients, so whether a customer colors at home or in a salon, the color is exactly the same and safe to use. “Continuity is key, and we know exactly the color of a customer’s hair in any of our 83 salons. I have customers that come to ten different locations traveling all over the country, and we are delivering on our promise every time,” said Errett.
The loyalty program launch comes following a year of rapid growth for the brand. In 2022, Madison Reed opened 30 new Hair Color Bars, raised $33M in venture funding from Sandbridge Capital and Marcy Ventures, and cemented its omnichannel footprint by expanding at Ulta Beauty
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