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Huggies Rewards US Loyalty Program Case Study

huggies rewards

Huggies is a leading diaper brand that distributes products through many retailers around the world, including supermarkets, pharmacies and department stores. Customers can also purchase products directly through the Huggies online store.

What is Huggies Rewards?

The Huggies Rewards Program (only available in the United States) rewards customers for repeat Huggies purchases and brand engagement.

How Does Huggies Rewards Work?

huggies rewards app

Image Source: Huggies

Customers earn 10 rewards points for every dollar spent on Huggies diapers and wipes, purchased anywhere in the US.

The customer purchases a Huggies product, and then uploads their receipt through the Huggies Rewards app, or by visiting the Huggies website within 30 days of making the purchase.

The receipt is scanned, the data is extracted and the points are automatically awarded to the customer’s account.

Customers can also earn bonus points for downloading the app, sharing on social media, taking surveys, referring friends and reading Huggies-sponsored articles about babies.

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What Rewards Does the Program Offer?

huggies rewards offers

Image Source: Huggies

Loyalty program members can choose to redeem their points on a variety of rewards, which start from just 50 points and include:

  • Discount vouchers for Huggies products
  • Free items (sent directly to the customer)
  • Charitable donations on behalf of the customer
  • Gift cards from leading brands such as Starbucks, Target and Walmart
  • Entries into sweepstakes, such as a $400 Lululemon gift card, for example

Huggies also rewards customers with a complimentary 500 points just for joining the program. This is a highly effective on-boarding strategy, as it offers the customer instant gratification,which is an enticing incentive.

This isn’t the only signup incentive that Huggies has initiated in an effort to entice customers to join – the “Win Free Diapers for a Year” competition is targeting Huggies customers who are not yet a part of the loyalty program.

huggies rewards win free diapers for a year

Image Source: Huggies

All customers need to do in order to enter the competition is join Huggies Rewards.The goal behind this campaign is to accelerate registrations, and you can learn more about this campaign and the rewards program on the Huggies website.

How Does Huggies Rewards Benefit the Brand and its Customers?

As with any brand, there are several obvious motives for Huggies to create a digital loyalty program, such as:

  • increasing customer retention
  • increasing brand engagement and loyalty
  • increasing basket-size (to maximize rewards)

For the customer, diapers are an essential item for an extended period of time. Like milk and other perishable groceries, diapers are not a one-off purchase – the stockpile must be replenished on a regular basis, until the customer’s child has grown out of using them.

Seeing as the customer is going to continually purchase this product anyway, why not earn some rewards by consistently purchasing from the same brand? Huggies Rewards benefits customers by offering additional value to an already-essential repeat purchase.

However, there are also some less obvious motives behind Huggies’ decision to create Huggies Rewards, and the secret lies with the way in which customers accrue their loyalty points.

The Benefits of Receipt Scan Technology in Loyalty Programs

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Image Source: Huggies

Receipt scan uses sophisticated technology to convert customer receipts into data, which provides Huggies with actionable consumer insights.

Stamp Me Co-Founder Alan Donaldson said having access to this data is extremely powerful for brands, as it allows them to identify what else is in the customer’s basket.

“This provides incredible opportunities for up-selling and cross-selling, which ultimately leads to an uplift in sales,” he added.

There’s no need for point-of-sale integration, so implementing the system across numerous distribution channels and multiple locations is easy.

Huggies can use the data collected from receipts to segment its consumers into groups such as:

  • VIP customers
  • frequent customers
  • infrequent customers
  • lapsed customers

This allows Huggies to directly engage its most important customers (the VIPs) and incentivize customers from other segments to move up the value chain.

receipt scan technology

There are various kinds of digital loyalty programs that facilitate this level of segmentation, but not as quickly and conveniently as receipt scanning does. For big-name brands that mean business (like Huggies), receipt scan technology is extremely efficient when used in conjunction with a digital loyalty app.

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Receipt Scan Technology is a Valuable Asset for FMCG Brands

FMCG brand direct communication customer

For brands that produce fast-moving consumer goods (FMCG), a digital loyalty app with receipt scan technology can change the entire business. It establishes a direct connection between the brand and the customer, even though the product is being sold through an intermediary. This system requires zero involvement from the third-party intermediary.

A direct connection to the end-consumer allows FMCG brands to see exactly what customers are buying from them, what else they’re buying alongside it, and other crucial information that allows the brand to send increasingly tailored offers, communications and rewards.

Before digital loyalty apps and receipt scan technology, it was extremely difficult for FMCG brands to acquire this information. These innovations don’t just benefit the brand; they benefit the customer as well.

When done properly, personalization can boost customer satisfaction by up to 604%. Not to mention the convenience factor – scanning receipts on your mobile device is much less tedious than the old-school “send us your receipts in the mail” method.

get customers to spend more with receipt scanning technology

Smartphone cameras are extremely powerful these days, and a digital loyalty app makes it remarkably easy for customers to scan and send their receipts through the app; the same goes for using unique QR codes. You can compare and contrastreceipt scan technology vs. QR codes here.

So, in summary: here are the benefits of using receipt scanning technology with your mobile app-based loyalty program:

  • user-friendly process for the consumer
  • fast, simple and inexpensive for brands to implement
  • changes to things like terms and conditions, limited-time promotions etc. can be added, removed and/or amended within the system instantly
  • low administrations costs, as everything is processed automatically
  • highly secure
  • captures rich data insight for the brand (who, what, when, how much, where, what else, and so on)
  • instant communication directly to the end-consumer via text, email or in-app push notifications

Stamp Me provides brands with cutting edge receipt scan technology to close the gap between “brand” and “customer”.

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For brands looking for a convenient solution similar to Huggies Rewards, Stamp Me can help. We provide brands of all shapes and sizes with highly interactive, custom digital loyalty apps with receipt scanning technology.

Our award-winning solutions extract all the necessary data from customer receipts, providing brands with direct access to customer data and making all the benefits listed above possible.

In addition, Stamp Me’s loyalty solutions facilitate in-app gaming functions likeScratch & Win instant prize draws, exclusive promotions, surveys, polls and quizzes, social media engagement and numerous other engagement strategies to improve your customer retention and brand loyalty.

To discuss how Stamp Me’s receipt scanning technology and digital rewards platform can help your brand achieve the same results as Huggies Rewards, speak to a friendly member of our team today.

Stamp Me provides loyalty solutions to businesses large and small, from our own Customer Loyalty App to fully customised loyalty and rewards programs for enterprises and brands.

Contact us if you would like to discuss a loyalty or rewards solution for your business or brand.

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