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Retailers Use Rewards to Boost Loyalty

December 4, 2007

U.S. retailers of beauty products are banking on multi-channel sales and personalized customer relations strategies to maintain a competitive edge, according to a newly-published study by global management consulting and market research firm Kline & Company. Faced with a challenging mature market and growing competition from the direct-to-consumer sales channel, beauty retailers are beefing up enticements like customer loyalty programs in an effort to retain customers and attract new ones.

Specialty stores are now joining CVS, with its popular Customer Care Card, in offering shoppers an opportunity to earn rewards that can be applied toward savings on future purchases. Meanwhile, department stores are focusing on a multi-channel approach utilizing in-store, online, direct mail, and telephone contact to drive growth.

According to Kline, sales of beauty products through department stores are expected to grow by 3% through 2011, compared with only 2.7% growth expected for the overall market. More info: www.klinegroup.com.
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