Customer Retention: GNC Rewards its Loyal Customers With New Member Pricing Program

GNC, the nation's largest specialty retailer of health, wellness and sports nutrition products, launched a new member price program nationwide in April. The rollout of the program followed a nearly two-year test-market campaign in select cities, including Kansas City, Pittsburgh, New York and Chicago. The test campaign yielded higher store traffic, increased revenues and strong margins in those cities, making the decision for GNC to expand the program nationwide an easy one.

Members of the pricing program are given access to GNC's premium brands and innovative products at discounted prices throughout the year. This latest pricing program is an extension of GNC's current loyalty program, which counts nearly 7 million active gold card members. Those members were automatically enrolled in the retailer's new pricing program. In addition, GNC plans to expand the pricing program to include new and existing customers, as well as lapsed gold cardholders.

"We're very pleased with the initial phases of the member price program," said Joe Fortunato, chairman, president and CEO of GNC, in a company press release. "We're excited to offer it to all of our customers, including our existing gold card members. Member pricing offers access to GNC's premium products at a great value, increased convenience and simplified pricing."

The member price program rewards GNC's most loyal customers with the following benefits: up to 50 percent savings on their favorite vitamins, supplements, diet and sport nutrition products throughout the year; the program's simplified pricing makes shopping easier in-store and online; and in new markets where the member price program is launching, GNC will offer free memberships for a limited time.

For GNC, which sells commodity items such as vitamins and supplements that customers are likely to repurchase on an ongoing basis, a strong loyalty program can be a true differentiator from its competition. The brand believes its new pricing program is just that.