#119: Loyalty in the Luxury Sector (Short Summary Show)

As the largest luxury retailer in the Middle East, the Chalhoub Group is a premium concept, representing some of the most exclusive brands in the world, so creating a compelling loyalty concept for them required new ideas and innovative thinking.

This short show summarises my interview with Nida Unas, Head of Group Loyalty at the Chalhoub Group, who told me about MUSE – the programme they developed to reward premium Chalhoub customers with luxury experiences.

Show Notes: 

1) Nida Unas – Head of Group Loyalty at Chalhoub Group 

2) Lets Talk Loyalty #29: Rewarding Loyalty with Luxury Experiences.

Audio Transcript

Speaker 0 (0s):

Let’s Talk Loyalty is an industry podcast for loyalty marketing professionals. I’m your host, Paula Thomas and if you work in loyalty marketing, join me every week to learn the latest ideas from loyalty specialists around the world.

Chalhoub is a leading luxury retailer operating across the Middle East region and launched its loyalty program called muse in 2019.

So in early 2020, I met Nida Unus who leads this program to find out exactly how she created a value proposition based on experiences in order to appeal to the profile and needs of luxury retail customers boasting over 700 stores and 12,000 employees.

The interview was actually recorded just as the UAE announced the closure of shopping malls in order to combat the impact of COVID-19. So retail stores were under an entirely new type of pressure that none of us had ever seen before.

Nida shared with me the goals of the muse program, something the CEO of the Chalhoub group, Patrick Chalhoub was determined would surpass the usual points and transactional rewards with a vision to build human connections and show brand loyalty to customers using luxury experiences, to appeal to members as a still very new loyalty program. Just seven months old at the time of recording muse already enjoyed over a hundred thousand members and was starting to already see consumer behavior changing in direct response to the experience lead value proposition. The muse team had successfully convinced many of their luxury brand partners to support the program including 35 international brands, as well as other concepts created by the Chalhoub Group itself.

As a result from start to launch, the entire project was already two years underway, including the development of the value proposition to ensure value at every tier level and consumer research to ensure these luxury experiences would be effective in differentiating the shallow group in this competitive luxury market. Nita was excited about the power of the data becoming available in order to help make customers feel valued. And she shared with me some of the benefits she created to remove the pain points before, during and after shopping such as valet parking at malls, home delivery, complimentary alterations concierge services, complimentary make-overs styling sessions, luxury hunt massage, as well as immersive experiences and even some top prizes for luxury money can’t buy experiences. For example, from trow passes at major international fashion shows, of course, with the emergence of the COVID pandemic, the personal care experiences had to be suspended, but members were still being delighted to enjoy the launch of e-commerce benefits, such as complimentary home delivery and replenishment services, as well as extraordinary content and mentoring services such as styling to make the program more meaningful at an individual level and help muse members achieve their potential in whatever way that was meaningful to them. Overall, this episode is a master class in innovative thinking and driving loyalty for luxury retail customers and Nita emphasized some of the key success factors needed to truly build something that is compelling, both commercially and for consumers and making loyalty relevant across many markets, no matter how similar or how different they might seem to be having been shortlisted for the best new program by the loyalty magazine awards. I have no doubt that this family business with its laser focus on delighting customers, both all the ingredients for loyalty success. So if you’re interested in hearing how a leading luxury retailer Speaker 0 (4m 41s): Is achieving success with its innovative loyalty program, you can listen to the full interview it’s episode 29 on let’s talk loyalty.com

This show is sponsored by TheWiseMarketer – the world’s most popular source of loyalty, marketing news insights and research. The Ys marketeer also offers loyalty marketing training through its loyalty academy, which has already certified over 170 executives in 20 countries as certified loyalty marketing professionals. For more information, check out the wise market tier.com and loyalty academy.org. Thanks so much for listening to this episode of let’s talk loyalty. If you’d like me to send you the latest show each week, simply sign up for the show newsletter on let’s talk loyalty.com and I’ll send you the latest episode to your inbox every Thursday, or just head to your favorite podcast platform. Find let’s talk loyalty and subscribe. Of course I’d love your feedback and reviews. And thanks again for supporting the show.