#230: The Boots Iconic "Advantage" Programme in the UK Celebrates Its 25th Birthday

PAULA: Welcome to Let’s Talk Loyalty, an industry podcast for loyalty marketing professionals.

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PAULA: Hello and welcome to today’s episode, featuring one of the UK’s best known and best loved loyalty programs, the Boots Advantage Program.

PAULA: As this iconic loyalty program approaches its 25th birthday celebrations, I’m joined by Hollie McLellan, Head of Customer Marketing and Loyalty for Boots UK, to learn about some of the groundbreaking new developments they have launched recently, including their Price Advantage proposition, and also the role of content marketing as a new driver of loyalty.

PAULA: We also talk about some of the innovative new ideas that Boots is testing with UK consumers, such as some trials and testing of both gamification and subscription strategies.

PAULA: Ideas, I’m sure, will be loved by their members.

PAULA: Listen to this interview to learn how the Boots Advantage Program is continuing to evolve and innovate for the future with a clear focus on delighting its customers.

PAULA: So, Hollie, joining me today from Boots in the United Kingdom, welcome to Let’s Talk Loyalty.

HOLLIE: Thank you.

HOLLIE: I’m so pleased to be here.

HOLLIE: Looking forward to our chat.

PAULA: Me too, Hollie.

PAULA: I think I said to you that Boots was up on the wishlist from day one, when I was kind of brainstorming who I’d want to interview.

PAULA: So this is a very exciting time for me.

PAULA: And I know you’ve been doing some extraordinary work actually.

PAULA: It’s just what, 10 months that you joined the company now?

HOLLIE: Yeah, I joined back in August last year, and it’s been a bit of a roller coaster, but there has been lots of stuff actually, we’ve launched over the last sort of 10 months.

HOLLIE: So happy to share lots of the learnings that we’ve had and maybe share about a little bit around what we’ve got coming next as well.

PAULA: Wonderful, yeah.

PAULA: And it was because I literally saw, I suppose the changing strategy, Hollie, which was so fascinating on LinkedIn.

PAULA: So definitely be very excited to share that with everyone listening today.

PAULA: But before we get into that, as you know, I have a favorite first question to ask you personally.

PAULA: What is your favorite loyalty program, Hollie?

HOLLIE: This is a good question.

HOLLIE: I had to think about this, actually.

HOLLIE: So my favorite laws program is Deliveroo Plus.

HOLLIE: So for anyone that doesn’t know Deliveroo, it’s a food delivery service, take away delivery to straight to your door.

HOLLIE: And Plus is a subscription service around that.

HOLLIE: So you pay 7.99 a month, then you get unlimited delivery on orders over 10 pounds.

HOLLIE: And I think the reason why I’ve chosen it as my favorite is because it actually has changed my behavior, right?

HOLLIE: So that’s a really good sign of a loyalty program working.

HOLLIE: And I think subscriptions are just super interesting in the loyalty space because you’re getting someone to invest upfront in a future purchase and actually having that, you know, all you can eat essentially, you know, as much delivery as you want.

HOLLIE: I think it’s a really smart way to do that.

HOLLIE: And certainly for me, it’s changed my behavior.

HOLLIE: So I’m more loyal to that app than any other one.

HOLLIE: I’ve definitely increased my frequency of purchase.

HOLLIE: It’s probably not a good thing.

PAULA: Wow.

HOLLIE: But I think it’s really simple to use as well.

HOLLIE: So I think when we’re looking at, you know, what’s a good loyalty program now, it’s no longer just about the rewards.

HOLLIE: It’s also about value for money and convenience.

HOLLIE: Is this super, super simple to use?

PAULA: Yeah.

HOLLIE: And actually when you’ve got something like a delivery plus, I can order food within a couple of clicks.

HOLLIE: I can get my subscription within, you know, one or two clicks as Apple pay.

HOLLIE: So I think for me, all of those things are really, really important.

HOLLIE: And actually, I don’t know, like I’m less interested in rewards, actually.

HOLLIE: And I think a lot of consumers are sort of moving that way as well, is that I just want the core proposition to be really good and really work.

HOLLIE: And then the rewards can sometimes be like a nice little extra, but the meat of it has to be pretty good.

PAULA: Well, I think they’re brilliant insights, Hollie.

PAULA: I agree, absolutely.

PAULA: There’s a level of, I don’t know whether to describe it as jadedness or cynicism around loyalty sometimes, particularly for programs where we don’t know when and how we’re going to actually benefit.

PAULA: So I definitely agree that getting the core proposition right is probably overlooked in terms of driving a feeling of loyalty.

PAULA: And I’ve often said on this show, we’re not actually here to talk about programs.

PAULA: We are here to talk about changing behavior.

PAULA: So I love that you’ve picked up on that with Deliveroo.

PAULA: I was thinking myself now here in Dubai, we’re probably less competitive as a market for delivery services, but I can imagine it, if there was one that I opted into, then I would absolutely do all of my orders, which again are probably more than they should be.

PAULA: But that’s a different topic for a different day.

PAULA: But in terms of using a service, I would definitely, I suppose at least, have the share of wallet benefit I can imagine for Deliveroo, which is quite extraordinary.

HOLLIE: And then if you get some of these extra benefits on top, it’s nice, right?

HOLLIE: But then you’ve at least got that core thing that you bought into and you’ve bought into it because you want to use it in the future.

HOLLIE: And I think if you have customers position where they’re actually doing that, then you’ve really won.

HOLLIE: I think it only applies to a certain group of customers though.

HOLLIE: It’s not for everyone.

HOLLIE: So you probably need a broader loyalty or value strategy around that.

HOLLIE: But if you get that certain group of customers that’s super high value, getting them into the subscription is really smart.

PAULA: And I have an ulterior motive, of course, for asking that question.

PAULA: And that’s to line up ideas for new guests on the show.

PAULA: So thank you for giving me a new one.

PAULA: That’s wonderful.

PAULA: So listen back to Boots, Hollie, as we said, you’re 10 months in the role.

PAULA: I know you had a wonderful background before in lots of different types of work, including Dunhumbi, some consulting work.

PAULA: But really, I suppose the reason I wanted you on the show was because Boots is iconic.

PAULA: It has been operating, I think you told me now, for 25 years, the Advantage Program.

PAULA: So tell us a bit about the history of the Advantage Program just in terms of, I suppose, its role in British consumer life, I guess.

HOLLIE: I mean, it’s one of the most loved loyalty schemes in the UK.

HOLLIE: I think 70% of women in the UK have a Boots Advantage card.

HOLLIE: It’s got pretty big reach.

HOLLIE: And it is, I think why people love it is Boots, the brand itself, is well trusted.

HOLLIE: It has kind of a British heart to it.

HOLLIE: And I think also the scheme has always been positioned as a treat as well.

HOLLIE: So Boots itself does both pharmacy and also beauty kind of products and services.

HOLLIE: And actually the scheme’s been set up as a way to collect points to treat yourself, often around the kind of beauty side of things.

HOLLIE: And I know a lot of consumers are quite protective over their points, because I think there was a point in history when they were going to have a look at making it as a household account, so you could share your card with your partner.

HOLLIE: Actually a lot of consumers didn’t want to do that.

HOLLIE: They wanted to keep points to themselves, make sure they could treat themselves at the end of the month.

HOLLIE: Hilarious.

HOLLIE: It’s definitely kind of one of those most well-known schemes in the country.

HOLLIE: But it’s interesting though, it’s had its peak, I would say, in its current form.

HOLLIE: And I think interest in the scheme has probably waned a little bit over the last five or so years, as is true for lots of loyalty programs, I think, in the UK and probably elsewhere in the world.

HOLLIE: So I think for us, it was definitely time to re-energize it, re-look at what consumers want today because the retail market has shifted.

HOLLIE: So we used to walk down the high street and you would have a few options.

HOLLIE: Now you can go online if you’ve got as many options as you want at your fingertips.

HOLLIE: So earning customer loyalty through a loyalty program is slightly different now.

HOLLIE: Consumers want something a bit more immediate, instant gratification, instant value is much more important now than it was.

HOLLIE: All those years ago, 25 years ago when the scheme started.

HOLLIE: And also this year, we are actually celebrating the birthday.

HOLLIE: So we’ve got some lovely birthday celebration plans for August and September.

HOLLIE: So definitely watch out for those.

PAULA: Yes, absolutely.

PAULA: And I do want to touch on, I suppose, the proposition as I’ve experienced it.

PAULA: And I think, you know, I’ve been out of Ireland, for example, for five years.

PAULA: So probably a bit disconnected, but still is the one that is most respected, I think in the community.

PAULA: So I wanted to maybe talk you through just a couple of the reasons that I think it has been so successful and notwithstanding, of course, as you said, we always need to reenergize our program.

PAULA: But of course, there is the case of what is working and recognizing and retaining some of that.

PAULA: But just before I pick up on those points, Hollie, what kind of membership numbers are we talking about in terms of the UK for Boots Advantage at the moment, just approximately?

HOLLIE: Yeah, approximately 15 million members in the UK.

PAULA: Wow, wow, extraordinary.

PAULA: And I was trying to remember, I think the population there is about 60 million.

PAULA: So I think you’re about 25%.

PAULA: That’s unbelievable.

HOLLIE: Yeah, it’s a privilege actually to be part of the scheme, actually, and sort of have this opportunity to be able to run it and sort of take it into the future.

PAULA: For sure, for sure.

PAULA: So for me, I suppose the pieces that I have noticed, and I would guess I would even dare to say, as a consumer, I would have picked up on these because they’ve been done so well.

PAULA: And the first piece is the generosity.

PAULA: So, you know, if we look at supermarket loyalty programs or airline loyalty programs, obviously the reward rates can feel quite low, but Boots has always had this 4% reward rate.

PAULA: So to me, that’s an extraordinary indicator of the intention of the company, I suppose, to be loyal to its customers.

PAULA: So how is that piece, I suppose, doing with your members at the moment?

PAULA: Is that something you’re going to continue going forward?

HOLLIE: I think it’s an important part of the scheme to always have a points reward element to it.

HOLLIE: So I know we’re going to talk about price advantage a little bit later on, but I think it will be an important part of the future.

HOLLIE: And I think that’s also because of the frequency of purchase at Boots.

HOLLIE: So we’re not a grocery retailer in which a customer is going in week in, week out, and can accumulate points much, much faster.

HOLLIE: Actually with Boots, our frequency of purchase across the year is a little bit lower.

HOLLIE: So to make that trip meaningful and make you want to come back, there needs to be a substantial points that you’re receiving for each of your visits.

HOLLIE: So I think definitely for us, it’s gonna be an important part of the future to maintain that.

HOLLIE: And our customers love it as well.

HOLLIE: It’s one of the reasons why people come to Boots.

HOLLIE: So it’s definitely not something that we would want to take away.

PAULA: Oh, that’s great to hear.

PAULA: Very pleased.

HOLLIE: Definitely.

PAULA: Yes, wonderful.

PAULA: And the second part again, which has always blown my mind, is the degree to which the staff execute and remind and encourage people at the point of sale.

PAULA: And I have many times, first of all, I’ve often said on this show, Hollie, that I’m a very demanding customer in retail, because if anybody asks me to join the loyalty program, I usually will challenge them as to kind of why.

PAULA: Because I feel like there has to be a reason that I’m going to invest that extra time at the till.

PAULA: But for Boots Advantage, honestly, your staff, it’s obviously part of their induction and ongoing ethics, I suppose, about running it.

PAULA: So I’d love just a sense of how do the staff tend to embrace the program in your experience?

HOLLIE: I mean, it’s definitely a big part of the way that we set up our marketing campaigns, the way that we talk to our stores.

HOLLIE: It’s part of that induction program as well.

HOLLIE: And it’s, I feel like actually a Boots is a company where we’ve got a long history of people being colleagues in the organization.

HOLLIE: And I think people have grown up with the scheme.

HOLLIE: So even if we bring new employees in, there’s definitely those people there who understand the scheme, can kind of bring people on that journey and make sure that customers know about it as well.

HOLLIE: It’s definitely one of the most important parts actually, I think of the loyalty program is making sure that the staff within the stores understand it, are clear on the benefits for the customer, but also use it themselves.

PAULA: Yes, for sure.

PAULA: Brilliant.

PAULA: So two extraordinary, I suppose, demonstrations of how loyalty should be done.

PAULA: Definitely want to acknowledge all of that.

PAULA: And then to move on to the latest things that you’ve launched.

PAULA: So we’ve talked about, as we said, there’s already the points and that’s not going away.

PAULA: So that’s unbelievable.

PAULA: You’ve also launched a beauty club, which I’m really keen to hear about.

PAULA: I think it’s called My Beauty.

PAULA: So keen to hear about that proposition and also a price proposition.

PAULA: So I’d love you to talk us through both of those, maybe if you don’t mind.

PAULA: And I suppose the thinking behind them.

HOLLIE: Yes.

HOLLIE: I mean, if I take My Beauty first, that’s My Beauty is an extension of our loyalty program.

HOLLIE: So as you talked about, we’ve got points that are the real core of the AvantiCard program, that’s why you sign up and you also get additional offers and benefits like that.

HOLLIE: But we also wanted to make sure that there was a content part to the program too.

HOLLIE: And My Beauty was born out of the fact that there was a segment of customers, so GenX and Boomers, who felt like they were being underserved by the beauty market, just didn’t feel represented, didn’t feel like they were getting the right advice, whether that was for their skincare or for their makeup.

HOLLIE: And so we set about creating a club that was content-driven but aimed at that audience, looking to help with performance of skincare, performance of beauty, knowing what’s the best thing to buy for me right now in this stage in my life with my skin.

HOLLIE: And it sits alongside actually another club that we’ve got called Boots X, which is almost sort of slightly different, same premise, so looking to drive content and help people understand how to use makeup, but very much following trends.

HOLLIE: So what’s the latest thing?

HOLLIE: What’s the latest looks?

HOLLIE: Probably aimed at more of a Gen Z audience, but open to everyone, you know, it’s not necessarily exclusive to that.

HOLLIE: And I think having those two programs is really interesting having them both side by side actually.

HOLLIE: So as a consumer, you can decide, do I want to understand more about the best way to get the best out of my skin, the best out of my makeup routine, or am I just interested in fashion, and I just want to have the latest looks and be on top of the latest trends?

HOLLIE: And I think that’s really nice to give people that choice based on their needs in beauty, rather than it kind of being about, I don’t know, age, or, you know, it’s not decided for you.

HOLLIE: And for us, those two things are really important, having those two communities, because, as I mentioned previously, the frequency of purchase at Boots is slightly lower for a beauty retailer and a pharmacy retailer than it would be a supermarket.

HOLLIE: So content for us is important way to bring people back into the brand and continue that conversation that we have with them.

HOLLIE: My Beauty launched, I think it was, you know, maybe six weeks ago now, when we’re up to a million members already.

HOLLIE: So it’s grown, yeah, very, very quickly.

HOLLIE: And I think it just shows that there is appetite out there for this content.

HOLLIE: And I think it’s great that we can kind of fill that space in the market.

PAULA: Totally, totally.

PAULA: Congratulations, Hollie, a million members.

PAULA: It’s unbelievable in six weeks.

HOLLIE: It’s pretty exciting.

HOLLIE: Yeah, it’s great.

PAULA: And I think you’re absolutely right.

PAULA: I do think there is the appetite for the content with, I suppose, the caveat from a trusted source.

PAULA: So I think that’s where Boots is really, as you said earlier, actually, it’s got the heart.

PAULA: It’s got a British heart.

PAULA: It has been on the high street for years and years.

PAULA: It’s absolutely everywhere.

PAULA: People love the brand.

PAULA: So for you guys to advise us on our skincare and stuff, it’s just a lovely insight.

HOLLIE: I think so.

HOLLIE: I think content is gonna be a big part of our future as well.

HOLLIE: I just think we have an app at the moment which is delivering a great shopping experience.

HOLLIE: It helps you buy the products you need.

HOLLIE: But for us, that very much, I think, needs to change in the future to being much more of a content hub.

HOLLIE: Because as you say, Boots is such a trusted retailer.

HOLLIE: I think in beauty, but also in healthcare as well, there feels like there’s a huge gap in the market at the moment in supporting the NHS and making sure that people have got the right advice.

HOLLIE: And if they can’t kind of get to their GP, they should come and be able to talk to one of our pharmacists as well.

HOLLIE: So definitely in the future, I think content for us is a big pillar of loyalty, whether we do it through a club or whether we do it through a personalized app experience.

HOLLIE: So you will have your own version of Boots through the app.

HOLLIE: That’s the sort of stuff that gets me really excited about the future.

HOLLIE: I think that’ll be really interesting.

PAULA: For sure.

PAULA: And very innovative as well, Hollie.

PAULA: There’s not many people come onto this show and have content as a pillar of loyalty.

PAULA: So definitely I can see the leading edge thinking.

PAULA: And sometimes it is a case of test and learn, I guess, because you don’t know if a million people are gonna sign up or just gonna say, oh no, I already have my sources, my Instagram or whatever.

PAULA: But yeah, I’m sure you did lots of research.

PAULA: Did you before you launched the My Beauty?

HOLLIE: We did, yeah.

HOLLIE: We definitely took it into testing.

HOLLIE: Well, firstly, testing to understand the different segments in the market and what they needed and what they wanted.

HOLLIE: And then when we went into kind of development of the club, we then tested that with consumers as well, just to understand, does this fit your needs?

HOLLIE: Would you be interested?

HOLLIE: And then as you say, though, I think good to get something into market because it’s all very well asking someone if they would want something.

HOLLIE: And we all know a lot of people will probably say yes.

HOLLIE: But I think the proof’s in the pudding, that you have to see, will people actually take it up and continue to engage with it over time.

HOLLIE: And it’s been a really good experience for us, I think not just for us as Boots, but also for our supplier partners.

HOLLIE: So number seven is obviously a big part of Boots and is owned by Boots, and it’s one of the brands that’s leading part of the communications of My Beauty, but also some of our other brands that we work with as well can also get involved.

HOLLIE: So it creates a really nice platform for us to speak to our customers, but also our suppliers as well.

PAULA: Wonderful.

PAULA: I hadn’t thought about that part, but I can see absolutely the need.

PAULA: And I was going to ask you just to finish on the content piece, is it driven by, I suppose, your own content as Boots, creating maybe articles or videos?

PAULA: I’m not sure what.

PAULA: Is it coming from Boots or is there an element of, you know, members interacting with each other or not?

PAULA: What way is it actually working in practical terms?

HOLLIE: It’s a really interesting question.

HOLLIE: It’s one of the things we’re thinking a lot about at the moment.

HOLLIE: So right now, it’s a combination of us developing the content and then also us working with influencers to develop the content and bring that to consumers.

HOLLIE: The next stage is very much about how do we get our consumers generating the content as much as possible and also actually the role of our team members in stores.

HOLLIE: So we have team members developing content and using that on social channels.

HOLLIE: But actually, we would love to sort of harness the power of the thousands of people that we’ve got in our stores in the UK who are seeing customers day in and day out.

HOLLIE: And they’re actually kind of the people that you would trust as well.

HOLLIE: So we definitely want to try and harness that a bit more in the future.

HOLLIE: But it’s a really interesting question because I think there’s a risk, I think, that you can over invest in developing your own content.

HOLLIE: And I think the point you were touching on there is that there are so many sources out there.

HOLLIE: And you just want to make sure that you’re delivering something that is unique, different, fills a consumer need and that they can’t get anywhere else.

PAULA: Yeah.

PAULA: But also, I think with my consumer hat on, Hollie, what it does to me is it makes me feel that the brand actually does care in a way that is way beyond transactional or all of this kind of idea.

PAULA: Like to me, some brands don’t want to invest in content because they can’t see a lead generation or an immediate behavior change.

PAULA: And we can feel that, again, as I suppose fairly savvy consumers now, particularly as you have there in the UK, we know that people are doing certain things, sending us offers, for example, to get us to buy stuff.

PAULA: And that’s totally fine.

PAULA: But I do think when there’s an investment in content, it feels much more like there’s a lot of integrity, again, that the brand wants to support me and give me what I need, rather than it always being about what am I going to buy from you?

HOLLIE: Yeah.

HOLLIE: And I think one of the things that we’ve had to do to overcome that mindset, because we’re definitely in that transition as a business, is moving from the way that we talk to consumers is around promotions and is around value.

HOLLIE: And as you say, getting them to make that shop as quickly as possible.

HOLLIE: I think the key thing for us has just been changing the key performance indicators that we look at.

HOLLIE: So it’s thinking about how often does someone open the app?

HOLLIE: How often does someone engage with some of the content that we’re sending?

HOLLIE: That being a measure of success and understanding actually, does that lead on to a higher lifetime value of a consumer at the end of the day?

HOLLIE: I think you need some of those proof points to help the business believe in it and make that transition as well.

HOLLIE: But it’s challenging, I would say.

HOLLIE: It’s one of the most difficult parts, I think, of transforming a retail business from that week by week mindset into a slightly longer term mindset.

PAULA: Yeah.

PAULA: Yeah.

PAULA: Well, lots to reflect on there, Hollie.

PAULA: And then talk us through the price advantage proposition.

HOLLIE: So price advantage, we trialed in-store last year, and it was a really successful trial.

HOLLIE: And then we decided to launch it online in-store in April this year.

HOLLIE: So it has been going for a couple of months.

HOLLIE: And this week, actually, we just launched our first TV campaign to support it as well.

HOLLIE: So we’re really kind of getting behind it.

HOLLIE: It’s currently on, I think, about 500 products across the store.

HOLLIE: I’m looking to roll that out further across the year, whether that’s on more products or whether that’s on different prices, different types of promotions.

HOLLIE: And it’s definitely one of those propositions that’s just gone down really well with customers.

HOLLIE: Customers absolutely love it.

HOLLIE: We are seeing brilliant results off the back of it.

HOLLIE: So our signups to the scheme have increased.

HOLLIE: We’ve seen actually downloads of our app increasing as well.

HOLLIE: And most of what actually it’s helping us to drive better profitability through our promotions as well.

HOLLIE: So, yeah, it’s been a real success.

HOLLIE: And that’s one of the things we’re going to keep driving forward in the next couple of years.

PAULA: And I didn’t do any of the maths, so forgive me, Hollie.

PAULA: But I did see I saw the TV campaign on your LinkedIn.

PAULA: So that was wonderful.

PAULA: Very exciting to have some TV support.

PAULA: But the discounts certainly look very generous.

PAULA: That would be absolutely.

PAULA: And that sounds intentional.

PAULA: Do you have, I suppose, a level or a percentage that you’re aiming to give to Advantage members?

PAULA: Or is it literally product by product?

HOLLIE: It is product by product.

HOLLIE: I would say there are essential lines where we’re probably giving a smaller percentage, but a meaningful percentage.

HOLLIE: So on your things like your shower, hygiene care, all of those sorts of things.

HOLLIE: But then we want to give people some excitement as well.

HOLLIE: So stunt deals on some of those big beauty brands, some fragrance, maybe even some electrical beauty, maybe in the future, just to try and drive a bit of interest.

HOLLIE: And actually, I guess for us, it’s about giving customers a reason to come into Boots as well.

HOLLIE: So we want to give them a deal that they’re not going to be able to get anywhere else.

HOLLIE: And actually, if we can do that through Price Advantage, then I mean, that’s even better for us as a loyalty scheme owner.

HOLLIE: That’s really important because as I’m sure lots of your guests who come on here will say data is a huge part of why we have the loyalty program.

HOLLIE: So making sure that people are swiping their cards when they come in is really, really important to us.

HOLLIE: So having promotions behind the card helps us do that as well.

PAULA: Oh, I got it.

PAULA: OK, so a key KPI it sounds like then is, you know, the price is, you know, the non-advantaged price, swipe the card and I guess it drops straight down.

PAULA: So, God, people love that, huh?

HOLLIE: Yeah, and I think actually it’s a really good marketing tool, actually being able to do that on shelf.

HOLLIE: So often you would try and like acquire someone to a program, whether that’s doing that while they’re browsing online or walking through the front of the store or at the checkout.

HOLLIE: But actually having something on the shelf edge that reminds you about the loyalty program is, I think, a big kind of game changer for us in kind of getting us at the forefront of customer minds.

HOLLIE: It gives you a reason right there and then to go and get your card out or sign up for a card.

HOLLIE: And it just creates a habit then as well.

HOLLIE: Every time you’re shopping, you see, oh, okay, against this price, I need to sort of swipe my card.

HOLLIE: And also, hopefully, people feel like because you’re a member, you get an extra benefit as well.

HOLLIE: You’re part of our club.

HOLLIE: If you want to be in the club, you get access to these great low prices.

PAULA: For sure.

PAULA: And I’m sure you can tell me, but I would love to know your swipe rates.

HOLLIE: I probably can’t tell you that, unfortunately.

PAULA: I have to be nosy.

PAULA: I always wish I could sneak in behind the scenes and see all the KPIs up on the presentation board for the C-suite, but I totally understand that some things we can’t talk about too publicly, but yeah, extraordinary just to see the growth and to understand that that’s exactly the behaviour that you’re, I suppose, reporting internally to the C-suite.

HOLLIE: Yeah, absolutely.

HOLLIE: It’s been a huge success, so definitely one that we’re going to continue to roll out over the next couple of years.

PAULA: Wonderful.

PAULA: And the other big one I know that you’re working on a lot, Hollie, and I can’t believe you’re doing all of this in only 10 months so far, but you mentioned to me before we came on air that you’re changing, I suppose, the way you use the data.

PAULA: So rather than the calendar type approach moving, much more personalized, which to me is something again, Boots at your scale is probably quite a difficult thing to do, but I would love to understand what you’re aiming to do and where you are on that journey.

HOLLIE: Yeah, and it’s definitely a journey, and we’re kind of in the middle of it at the moment.

HOLLIE: So we invested actually in a new martech platform.

HOLLIE: Actually, the Boots did that just before I joined, and so it’s been my job to help implement that and make sure that we’re making the most of that system.

HOLLIE: But I think the technology part helps you process the data faster, and it helps you to get those communications to consumers at the right time with the right message.

HOLLIE: But the most important part is the data.

HOLLIE: So we obviously have a wealth of data, not just from the shopping, from customer shopping, but also from them browsing online, interacting with our app.

HOLLIE: And even in the future, we will hopefully have access to some of the healthcare data with our customers’ permissions as well.

HOLLIE: And so the challenge that we’ve got as a business is, as you say, we are a very big business that’s quite diverse as well.

HOLLIE: So we have almost three different pillars of business.

HOLLIE: So we’ve got a health business, a beauty business, and almost like a general merchandise business, people will come to us for Christmas gifts and all sorts of other stuff.

HOLLIE: Pharmacy, opticians.

HOLLIE: Sandwiches, exactly.

HOLLIE: And so what that means is, we have lots of different things that we want to talk to customers about.

HOLLIE: And so at the moment, we are set up in a way which means that we will often talk to customers about what we want to talk about.

HOLLIE: And it should be much more the other way around.

HOLLIE: It should be, what does the customer need right now?

HOLLIE: And what you referenced at the start there is moving from an approach where we have these communications laid out in a calendar across the year, just because that’s always just been an easy and efficient way to do it, because we’ve not had the technology in order to do that for us.

HOLLIE: You need to sort of plan it out.

HOLLIE: But now that we do have that, we can flip that and say, well, actually, this consumer bought retinol, for example, the retinol cream, and actually, I don’t know if anyone knows retinol, but it sometimes has slightly adverse effects on your skin, but that’s completely normal.

HOLLIE: So actually us being a kind of thoughtful retailer, what we should be doing is saying a week after that consumer’s bought that product, letting them know, okay, don’t worry, these are sorts of side effects you should expect.

HOLLIE: In two weeks’ time, these are the differences your skin should start to see.

HOLLIE: And then actually then follow up in two weeks’ time and tell them, okay, how are you getting on?

HOLLIE: If you’re having any trouble, come and see one of our advisors in store.

HOLLIE: And then further down the road, perhaps talk to them about, okay, well, if you enjoy using that retinol cream, how about trying the night cream, the day cream, the eye cream?

HOLLIE: It’s about trying to work out what’s that key piece of data that someone has given us to tell them about what they either want to buy next or perhaps the journey they might have fallen into given that they’ve just bought something.

HOLLIE: And then our job is to then create a customer engagement program, I guess, around that.

HOLLIE: So what are the different types of communications that we will set up in order to nurture them through to a purchase or just help them experience that product in a slightly better way?

HOLLIE: And I guess the other challenge is, it’s easy sometimes, I think, to think of that in an email form because it’s quite linear.

HOLLIE: But I think the additional complexity that we are now adding in is how do we do that multi-channel?

HOLLIE: So whether that’s communicating to you when you’re on the website in a certain way or through the app or using push notifications, but orchestrating all those different touch points so that it feels like we’re talking to you in the moments where that communication is relevant, it’s right.

HOLLIE: But it’s a challenge, and there’s a lot to do.

HOLLIE: So we’re very much on that journey.

HOLLIE: I’m not going to say we’re kind of finished on it, but what I would like us to get to the position is we have almost 80% of our communications are triggered by a piece of data, rather than at the moment, I would say it’s almost the flip, which are 80% of our communications are triggered by a calendar or someone deciding it’s time to send something to someone.

PAULA: Yeah, by the business, exactly.

PAULA: Planning out something that they can manage.

HOLLIE: Exactly.

PAULA: Yes.

PAULA: No, I was reflecting, as you were saying that, Hollie, so many of us talk about omni-channel and so many of us talk about personalisation, but it’s rare that you get them in the same conversation in that that’s all being executed across all of your channels, across your 15 million members.

PAULA: Yeah, with that degree of data-led personalisation, that’s absolutely extraordinary.

HOLLIE: Yeah, and I think it’s part of our plan, as I mentioned earlier, is also to bring the app into this a bit more.

HOLLIE: So we’re kind of less trying to push our communications to consumers, but more proving them the reasons to come to us as much as possible.

HOLLIE: And then personalise that experience when they get there.

HOLLIE: That’s the other sort of, I think, key part of it.

HOLLIE: So it’s doing it omni-channel, but it’s also changing that relationship, so it becomes less of a push and more of a pull.

PAULA: Love it, love it.

PAULA: And just as an aside, I saw again on your LinkedIn, you have about 35 in your team, isn’t it, Hollie, to make all of this magic happen, yeah?

HOLLIE: We do, yeah.

HOLLIE: And we also have a partnership with The Farms, one of the WPP agencies as well.

HOLLIE: So they’re very much part of our wider team too.

HOLLIE: And they help develop some of our communications and make sure I give them a shout out as well.

PAULA: Oh, wonderful, wonderful.

PAULA: Yes, you got to have those partners for sure.

PAULA: Wonderful.

PAULA: So listen to me coming up next, I suppose.

PAULA: What can we expect to see, Hollie, coming up in the next, I suppose, months and years ahead?

HOLLIE: So as I said about the app being a real central part of our plan, we are looking at how we can gamify that app experience a bit more as well.

PAULA: Wonderful.

HOLLIE: So whether that’s looking at how we gamify our offers, at the moment you can get offers through the Boots app, but how do we make that a bit more interesting?

HOLLIE: So every time you shop, perhaps there’s a game that you engage with and perhaps you get something different off the back of it.

HOLLIE: Or actually, how do we change some of our download incentives?

HOLLIE: So we have 200 points if you download the app at the moment.

HOLLIE: And we’ve just currently been trying competitions as a different method of incentivizing people.

HOLLIE: And we are seeing incredible results from that.

HOLLIE: And what’s really interesting is actually as a whole, our consumers are kind of getting, almost actually less because we were willing to give away 200 points to everyone.

HOLLIE: But I think almost sometimes the excitement or the option of getting something bigger from a consumer’s point of view makes it more interesting to try and actually go in for it or download the app at the end of the day.

HOLLIE: So I’d really like to try and play around with that as much as possible.

HOLLIE: How do we use competition or the possibility of accessing something even bigger, but only with a chance and with less certainty.

HOLLIE: So doing more of that, I think, would be interesting.

PAULA: Yeah.

HOLLIE: And then I also think that we are going to continue to relook at subscriptions.

HOLLIE: So we have trialed Plus, a Plus Advantage Card Plus program in the UK, which was free delivery and it was also 10% off everything.

HOLLIE: I think it was for £20 a month and we trialed that back just when I joined.

HOLLIE: So it was in sort of September.

HOLLIE: Okay.

HOLLIE: And it was an interesting trial, I think.

HOLLIE: We sort of learnt a few things from it.

HOLLIE: So consumers could only sign up in store.

HOLLIE: They couldn’t sign up online.

HOLLIE: So I think that was definitely a key learning is if we need anything with a delivery proposition, it definitely needs an online sign up journey.

HOLLIE: Makes sense, right?

HOLLIE: You know, if you’re going to be ordering online, you want to buy the…

PAULA: Sign up online.

HOLLIE: Exactly.

HOLLIE: And I think the other thing is just re-looking at all of our giveaway and all of our, you know, what do we give customers in terms of value and where would a subscription sensibly sit in that architecture?

HOLLIE: So if you’ve got your, at the moment, we’ve got our four points per pound, which probably sits at the bottom of that pyramid.

HOLLIE: We’ve then got price advantage, which means when you come in, you get an extra discount.

HOLLIE: We then have our digital offers in the app.

HOLLIE: And I think sometimes there can always be too much you’re trying to give away to consumers, whether that’s through an additional subscription.

HOLLIE: You know, who would that really be for?

HOLLIE: So I think the concept of a subscription is interesting.

HOLLIE: I’m not sure we got it quite right with, you know, 10% off everything when you pay 20 pounds a year.

HOLLIE: I think there might be something else that we can do there.

HOLLIE: Perhaps even looking at other content methods as well, not just, you know, articles, but things like fertility trackers.

HOLLIE: I think that’s a really interesting area.

HOLLIE: How can we help people with managing their health?

HOLLIE: And are there subscription services that we can develop around that as well?

HOLLIE: So lots of interesting kind of, I guess, avenues to explore for us in the next year or so.

PAULA: Wow, my goodness, Hollie, yeah, no, it’s super exciting.

PAULA: You know, as we said, like the data led approach is obviously working for you.

PAULA: And the fact that you have, I suppose, such freedom to try all of these things, whether it is subscription or gamification.

PAULA: I mean, I’m a little bit envious of you in your role, if I’m honest.

PAULA: So the only other piece I wanted to briefly touch on before we finish up was actually just back to your previous role in Dunhombe.

PAULA: And we’ve already talked a little bit about, you know, how the Boots staff are, you know, inspired, actually, it seems, by the Advantage Program, recommending it to people.

PAULA: But I did see something lovely on your profile as well.

PAULA: Back to the very start of your career about doing some work for a global employee Innovation Day for about 2000 people.

PAULA: So I just wanted to get a sense of, you know, driving employee engagement with that kind of experience behind you.

PAULA: If you wouldn’t mind just telling me a bit about what you did there.

HOLLIE: Of course, yeah, because it does take me back trying to remember to those days.

HOLLIE: But the point actually of that was, as you say, sort of twofold.

HOLLIE: So it was to engage the organization, so getting the business behind it, but then also to develop ideas.

HOLLIE: So it was a sort of cross between a hackathon.

HOLLIE: So we took 24 hours to give everyone in the organization time to come up with an idea, and they had to submit it to an online board.

HOLLIE: And then people could put themselves forward to join that team and become part of your hackathon team.

HOLLIE: And we had combinations of people in Dunhumbi who would be data engineers, data scientists, client services team members, you know, working within customer strategy as well.

HOLLIE: And I think that bringing together that mix of people who’ve got all of those different skill sets was really interesting and developed some brilliant ideas off the back of it.

HOLLIE: So we had the teams working.

HOLLIE: It was, I think, for 24 hours working on those different ideas.

HOLLIE: And then at the end of that 24 hours, we would have everyone come in and pitch.

HOLLIE: And you would come in and pitch your idea to the rest of the organization.

HOLLIE: And then our executive team then went away and had a look at the different ideas and decided which ones they wanted to take forward.

HOLLIE: And those ideas that were taken forward were given funding and an opportunity to grow and also launched within market as well.

HOLLIE: So and if nothing else, it was just a lot of fun.

HOLLIE: Everyone really enjoyed it.

HOLLIE: And I think people enjoy having the space to be a bit creative, enjoy kind of meeting different colleagues, working with different people and just sort of stepping out the day to day and having a bit of a broader perspective on some of the challenges that at the time our partner was Tesco, but also some of our supplier partners there, which would have been Procter & Gamble, Unilever, Pepsico.

HOLLIE: And it was just a really great experience and great for me to run it as well.

HOLLIE: Gosh, it taught me a lot about project management, trying to do that in, it was in the UK, but it was also a multi-market as well.

HOLLIE: So try and coordinate all those different markets.

HOLLIE: To do this in the same 24-hour period was a challenge.

HOLLIE: But Dunhumbi is a brilliant organization.

HOLLIE: I’ve only got brilliant things to say about it.

HOLLIE: So it has a certain type of person works at Dunhumbi, and they’re all very good and very smart.

PAULA: I can imagine.

HOLLIE: They’re interesting people.

HOLLIE: So yeah, I really enjoyed that.

PAULA: Well, thank you for talking me through that, Hollie.

PAULA: I was just reflecting recently on, I suppose, a couple of things.

PAULA: The whole thing about The Great Resignation, I think we’re all being impacted in terms of finding good people and keeping them.

PAULA: But also, I’m always just passionate about innovation.

PAULA: You know, it’s something I think we all kind of crave, is to find the next big thing, to have the light bulb moment.

PAULA: So I saw it on your profile.

PAULA: I thought, oh, that sounds like an interesting project.

PAULA: So super exciting.

HOLLIE: Yeah, it’s one of the things that I crave as well.

HOLLIE: I think innovation in a role is just so important.

HOLLIE: And I think everyone can have creativity and innovation in their role.

HOLLIE: It’s just, I think sometimes in this new hybrid working, I don’t know about you, but I think it’s harder to do that, actually, because you’ve got less of that experience of being around people, bouncing off ideas, and it’s much more of a transactional experience working virtually.

HOLLIE: But I hope we can make sure that we bring a bit more of that back over the next couple of years.

PAULA: I’m sure we will, Hollie.

PAULA: So listen, that’s all the questions I have from my side.

PAULA: Any other points that you wanted to touch on before we wrap up?

HOLLIE: Nothing else to me, but I’ve loved our chat.

HOLLIE: It’s been really good talking to you today.

PAULA: Likewise, Hollie.

PAULA: I’m just such a fan of what you guys are doing.

PAULA: So I want to say a huge thank you and congratulations for all that you’ve achieved so far.

PAULA: Hollie McLellan, Head of Customer Marketing and Loyalty at Boots UK.

PAULA: Thank you so much from Let’s Talk Loyalty.

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