Loyal Shoppers Get Beauty Booty

Bare Escentuals woos customers with gifts based on data from their purchase history

When cosmetics company Bare Escentuals decided to offer a customer loyalty program in May 2012, it took a non-traditional approach, giving fans personalized gifts and invitations to insider events rather than asking them to count points or accrue discounts. The risk has paid off. The Friends and Benefits program (FAB) has netted Bare Escentuals, a U.S. division of Shiseido, 1.3 million members since it started. In its first three months, about 40 percent of online and in-store customers signed up for the program—about double the typical sign-up rate for loyalty programs, per ePrize, which executes FAB. Since then, an average of about 30 percent of customers have signed up.