Changes to GNC’s Gold Card Loyalty Program Spark Positive Customer Behavioral Shift

GNC Holdings has added 3 million new customers to its Member Price Gold Card loyalty program that rolled out during May and June, company Chairman, President and CEO Joseph Fortunato said during a July 25 conference call to discuss second-quarter results.

Fortunato said during the call that the company accomplished its primary goals regarding the new Membership Price Gold Card customer loyalty program: new Gold Card member acquisition; increased flexibility to manage pricing; more transaction growth spread throughout the month, improved price perception; and better program awareness among new customers.

“This is one of the most significant undertakings in our company’s history,” Fortunato said.

Fortunate said the new Membership Gold Card program addressed the biggest customer complaint against the previous version of the program, which was the inability to use the card throughout the month. Under the new Member Price program, customers save 5% to 50% on every item everyday at any GNC store or on GNC.com.

Under the old program, customers paid $15 for a one-year membership and received 20% off purchases during the first week of every month. The fee is the same fee for the new program, but discounts are now available anytime.

GNC has found the new program produces higher store traffic, increased revenue, and strong margins. It also has seen increased customer retention and new card holders make more shopping trips spread more evenly throughout the month.

“Now will have comprehensive view of their purchasing activity,” Fortunato added. “The 3 million new names added to the Gold Card Member list is at the high end of expectations. We’re encouraged by the customer reaction to it. We’re only at the start of presenting this value proposition. We’ll continue to listen, learn, and adjust as the program enters the next phase.”

For the second quarter ended June 30, 2013, GNC Holdings saw its revenue rise 9.2%, to $676.3 million; same-store sales rose 6.8%; and net income increased nearly 8%, to $71.7 million.

Recent Content

Membership and Pricing

Videos and podcasts

Membership and Pricing