According to the Tribune-Review GNC, the USA retailer of vitamins and healthcare products, is growing LFL sales following their partnership with dunnhumby.
GNC has been sending individualized mailings to 1 million of its 7 million Gold Card members a month since September. The company's eight-page mySource catalogs are customized to each member, based on previous buying habits and any demographic data they've collected on the person, including age and gender.
“My standard is that it drove incremental profitability, not just sales, but profitable sales,” CEO Michael Archbold said in a presentation to analysts last month with dunnhumby's Pete Miles-Prouten. “Because the goal here is profitable growth.”
“It was like a snowflake. No one got the same communication,” said Peter Miles-Prouten, senior vice president of consumer markets at dunnhumby.
The company declined to provide specific sales and profit numbers related to the campaign.But in February, GNC reported fourth quarter net income of $51.8 million, up 8.6 percent from the previous year. On a call with analysts to discuss the results, Archbold said sales at stores open at least a year were increasing in the first quarter and expected to be higher for the year. Same-store sales comparisons are an important indicator of a retailer's performance because they don't count the revenue gains from building new stores.
In addition to the 1 million mySource mailings a month, GNC is planning to expand the marketing campaign using email.
“We are launching a digital version of this piece, which will be incremental to the printed version, in order to expand the audience receiving it,” Archbold wrote in an email to the Tribune-Review.
“We can't overstate the level of engagement this creates with our customers,” he said. “This provides GNC with the opportunity to match customers with high-quality products to support their unique health, wellness and performance needs.”