Leaders in Customer Loyalty, Powered by Loyalty360
Loyalty360 is the association for customer loyalty. We bring together the best loyalty-focused professionals from technology and service suppliers and brands under one roof. Through Loyalty360, these professionals find invaluable resources, networking opportunities and guidance provided by internal thought leaders and brands/suppliers on the cutting edge of customer loyalty.
Leaders in Customer Loyalty, Powered by Loyalty360
Leaders in Customer Loyalty: Brand Story | How Merz Aesthetics Elevates Loyalty by Keeping it Simple, Rewarding, and Human-Centered
For Merz Aesthetics, customer loyalty is more than a marketing initiative; it’s a guiding philosophy that influences every aspect of the brand’s identity and operations. As a global medical aesthetics company with a strong family-owned heritage, Merz Aesthetics places deep emphasis on building trust and delivering meaningful experiences that resonate with both healthcare providers and patients. In a category where confidence and care intersect, the company recognizes that loyalty must be rooted in both emotional connection and practical value.
At the center of this strategy is Xperience+, Merz Aesthetics’ award-winning U.S. loyalty platform designed to be both impactful and effortless. While the program is celebrated for its simplicity, it’s underpinned by a thoughtful, evolving strategy that adapts to the needs of a diverse and dynamic audience. From streamlining the user journey to ensuring that rewards feel genuinely valuable, Merz Aesthetics is committed to making loyalty easy without sacrificing depth.
The brand’s approach is led by Donnarie Hales, Director of Loyalty Strategy and Experience, who plays a key role in shaping how the brand balances innovation with simplicity. Hales emphasizes the importance of designing a platform that not only meets the practical needs of providers and patients but also reflects the emotional core of the aesthetics experience. With a focus on listening, evolving, and staying ahead of consumer expectations, Merz is working to create deeper connections with the next generation and building loyalty in an industry grounded in beauty, trust, and transformation.
Good afternoon and good morning everyone, and welcome back to Leaders in Customer Loyalty. It's great to have you with us every Thursday for a new episode of Brand Stories. In this episode, we will be hearing from Donnery Hales, the Director of Loyalty Strategy and Experience at MERS Aesthetics. Donnery, thank you for joining us. How are you today?
Speaker 2:I'm wonderful. How are you? I am wonderful, how are you.
Speaker 1:I am wonderful we finally got rid of some rain here in Cincinnati and the sun is out. So anytime that happens we celebrate. But for those in our audience who might not be familiar with MERS Aesthetics, can you give us a short introduction to the company and how and why it was started?
Speaker 2:Yeah, absolutely so. Mers Aesthetics is a family-owned business. It's been family-owned for about 115 years now. It's a medical aesthetics business. It has a long history of empowering healthcare professionals patients to live every day with confidence. So we have a product portfolio that includes injectables, devices and skincare, and our goal is pretty simple we aim to help people look, feel and live the best versions of themselves. However they define it, we're headquartered here in Raleigh, north Carolina. If you can't tell, they hired locally for me with this North Carolina accent, but they have commercial presence in about 90 countries.
Speaker 2:So it's a part of the MERS group, which is a larger holding partnership, but the MERS aesthetics piece is housed right here in Raleigh, North Carolina.
Speaker 1:Amazing and can you share a little bit about what's led to MERS success over these years?
Speaker 2:Yeah, I think their success it's been both on the aesthetic and therapeutic side. It's really been that focus on their customer and how those products help the customers. So being able to be on both sides of that industry with a portfolio of products to be able to help people where they need it with the right products, on both that aesthetic and therapeutic side.
Speaker 1:Awesome. Well, I was really interested in hearing more about your role with the company, especially when I saw your title Loyalty Strategy and Experience. More and more, we're hearing about the inability to separate those two things within a brand. If you really want to be driving loyalty, experience is part of that. So can you tell us a little more about your role and what positions you've had that led you to be in the place you are now?
Speaker 2:Absolutely. I have been with Merz Aesthetics for a little over two and a half years now. I would say I've spent 20 years in just the realm of marketing. But I agree with you. I was like it is very difficult.
Speaker 2:Any good marketer has now realized it's very hard to decouple marketing, customer experience and now loyalty. You can pick up your phone and you can look at anything that you deem your favorite loyalty app or your favorite loyalty experience that you're getting from various stores and experiences and you can't escape it. I think that is where marketing has really evolved, is what we consider loyalty retention and growth is really all rolled into marketing now. So I would say, particularly the last seven years of my professional career, I was focused on both customer experience but also the technology side of enhancing that experience. So when I saw a role open here at Merce Aesthetics for provider and patient loyalty, to me that was just a culmination of some of the areas I had been focused and I personally love making sure the customers are happy. So happy customers, getting a great experience from end to end, not just a loyalty program, is something I'd focused on in prior roles, so I felt like it was going to be a great fit here as well.
Speaker 1:Amazing, and so you know keeping people happy is not an easy task. So what keeps you up at night? What are the biggest challenges or opportunities that you face in your position right now?
Speaker 2:Yeah, I think anyone who has loyalty or experience in their title. It's such a large bandwidth of opportunity. The opportunity is endless. But the opportunity also is so large because when you think about loyalty to any brand or any business, it touches every experience that they have, from digital platforms to digital frameworks, to websites to in-person experiences, from walking across the threshold of a retail store. Anyone that has customer experience or loyalty. That's what keeps you up at night. You can't own everything, but you really want to do everything to elevate the company's experience and at the end of the day, that really comes down to technology and data. I have never met anyone who can tell me a perfect, seamless story of dealing with technology and the data. But that's what keeps me up at night, but that's what keeps me excited every day is when you can bring those two things together to create seamless experiences for customers. It's very rewarding, but I completely agree with you, it's difficult but a large opportunity to keep your customers very happy.
Speaker 1:Awesome. So within you know talking about customers, you know we've seen a lot of shifting things and across all kinds of aspects of different industries, from technology to, you know, economic issues, how is the medical aesthetic industry changing and how are you seeing your customers, in particular, changing?
Speaker 2:You know, I think really the biggest change in aesthetics came during a large response to COVID. I think before COVID, I think about aesthetics of it was a little bit taboo, right you? I think before COVID I think about aesthetics of it was a little bit taboo, right, I think of people my mother's age or people even a little bit older than me. You knew that they looked better, you knew that they looked refreshed, but it was a little bit of a hush hush topic. Covid came and I don't know if you remember the Zoom face trend.
Speaker 2:I mean, even right now you cannot be on an online meeting without glancing and looking at yourself. So during COVID, everyone was at home, everyone was meeting virtually and all they were looking at was themselves. They weren't looking at their partners on the call, and that really made people recognize it was time for self-care, it was time for kind of home relaxation. So during COVID you really saw a rise in aesthetics across the industry. That, combined with influencers, social media, people being very open with health, fitness, wellness, that has really removed the taboo nature of why does your skin look so good? Why are you keeping such a youthful look? It has gone from. Where do you get your hair done all the way through. What kind of toxin are you using? It's just not as taboo as it once was.
Speaker 1:That's really interesting and I can say from an anecdotal perspective. I've noticed that, like among people that I know talking more about it, for sure since COVID, so that makes total sense. Yeah, so are you seeing any macroeconomic changes that concern you from a customer experience perspective and how are you responding to some of this uncertainty right now?
Speaker 2:You know I think with every situation in the world you know, every year brings something new that everyone has to face and particularly when you look at the economics of any industry, you have to be realistic that aesthetics is voluntary, right. So I think it becomes down to prioritization where you place it in your life, the type of self-care that you're looking for, the type of look that you want to maintain that becomes a factor in what you decide to do. You will see people that I recently saw a trend on TikTok of people were talking about we're this far in the recession and talking about how they're not getting their hair colored as often. I think that's one of the trends that we're seeing in aesthetics is the boom of COVID and people being at home and having a little bit more discretionary funds. Also now is coming back to the reality that where you invest financially is going to have to be prioritized in the economics that we're in or every time economics start to change.
Speaker 1:For sure, and one of the things that we've consistently been hearing lately from a lot of different retail brands who are members of Loyalty360 is the customers search for value. Is that something that you're continuing to see, and what does that look like in your world?
Speaker 2:Absolutely. I mean, I think there is always financial value. No matter where consumers are spending their money, there's always going to be a variation of what they consider value that's tied to their decision making. So when you're considering aesthetic treatments, it is an investment in your health and appearance and well being and it's a cash service. So they're not only looking for the value to get the long lasting results that they are looking to get and in the products that they're choosing, but I do think that there is always going to be value from a financial perspective of I want products that make me look and feel the way that I feel on the inside. But also there's that financial component and how do I make it the most valuable and rewarding possible, which is where the loyalty programs and aesthetics really helped us support.
Speaker 1:Awesome. Well, speaking of coming out of the pandemic, in 2021, MERS Aesthetics launched Experience Plus and with just over three years, you've grown to have over 1 million members in your program. What differentiates your loyalty program from others in the aesthetics or the skincare space to have such an amazing milestone in such a short amount of time on?
Speaker 2:in such a short amount of time. Yeah, I mean, the aesthetic industry is really, I say, wild. It's such an interesting place for loyalty to play because it's so different than retail based. While I was at Loyalty360, that was a big focus of.
Speaker 2:One of our topics is we are B2B2C and our B2B partnerships with our healthcare providers are the critical differentiation for all aesthetic loyalty programs. So, first and foremost, our providers are determining the best product that's going to give the patients the results that they desire, and the growth of the program is a testament not only to the portfolio of products but also the trust that our providers have in those products. So the recommendation from our providers for our patients of our products is absolutely the biggest driver, and that secondary result is the participation in our loyalty program. So not only are our providers making recommendations about the products, but our providers are signing patients up into the program. When you think about opting into loyalty programs at a standard retail location, it is a very individualized experience depending on the healthcare provider or med spa that you're visiting. So you know we've been wildly successful over the last couple of years. We've exceeded actually 1.4 million members, but that really is a driver to our partnership with the providers and the trust they have in the products and the program.
Speaker 1:That's amazing. And so when we think about your loyalty program and I think you may have touched on this a little bit from the loyalty from the medical provider side and those referrals and signing people up but what kind of customer behaviors are you driving through the program for the end users? Is it frequency or referrals, brand advocacy, like what are the important things that you guys are getting back from that program?
Speaker 2:I mean, it is the storyline for every loyalty program. You want consumer and customer retention and you want growth. First and foremost we want a patient to be happy with the outcomes of their treatment. But when you only have the opportunity outside of the skincare sector to see a patient three to four times a year, you've got to be very impactful with your loyalty program. So we do want to drive that retention. I want them to be happy with their treatment, I want them to love how they look, but then I do want them to be able to earn on those treatments that they love so that they can redeem that for discounts and really play in that financial value as well.
Speaker 1:Amazing. So I guess, more generally, what does customer loyalty mean to you and to MERS Aesthetics, and how does Experience Plus fit into that vision you have for customer loyalty there?
Speaker 2:I mean, I think I took it very personally when I started working here, because, while you could say we're a corporation, the fact that we are the size that we are and that we of gaining the trust and loyalty from our customers because we need to gain the trust from two different customer sets it's that B2B customer as well as that B2C. So no matter what you are, whether you're B2B or B2C you want to feel valued by the company that you're doing business with. So I think that is where it becomes such a critical piece, not only for our company but for our overall strategy, because we really do function and we have the mindset of family owned and we want our customers to value working with us as much as we value working with them.
Speaker 2:Amazing working with them, amazing so how has your loyalty and CX strategy evolved since the launch of your program? You know, I think once again, if you can ever look up and get outside of the, what does it take from a technology perspective to make the strategy work? We are looking at the aesthetic industry, right. What are some of the trends that we're seeing in aesthetics? What are things that are really going to support our providers to drive their business? But it's also very important to start looking at that CX strategy from that larger customer experience lens and going to places like Loyalty360 and hearing about loyalty from other points of view outside of the industry.
Speaker 2:You know we're the most rewarding program for patients and providers in aesthetics, but our goal is always to make sure that it's customer first. So I would say our strategy has always been simplicity. We want to be the most rewarding and the most simple because we are duplicative to our providers day to day as they're checking out their patients in their office. They're signing them up for our program. So our strategy over the last three years is be valuable to the providers, have value for the patients, but we want it to be simple. I want it to be simple for our patients to understand what they're getting and how they redeem, and we want our providers to be very happy. So I say that of we've really kept it with make it simple and make it work well, but now I would say our next phase is how do we evolve to really enhance the program outside of where it has been the last three years?
Speaker 1:Awesome. Yeah, that's definitely something that we heard a lot at Loyalty Expo last month was the people the refrain of simplicity was happening across a lot of places and leaning into those programs and making them easy to use. But have the methods that you use to engage or the rewards for customers changed and how do you see that evolving as you move forward?
Speaker 2:Well, I think that is where every loyalty program ends up sitting there racking their brain of what can I offer? That's different, I think you know simplicity for us has been very hefty rewards. We have good cash discounts, same day treatments. We have high earning on points and treatments that they can come back for discounts. So over your aesthetic journey there are so many easy ways to earn and redeem so that simplicity we always want to ring true. Thinking about what's the next step.
Speaker 2:It was eye-opening to me at Loyalty360 and hearing a vendor like Kobe show some consumer insights that the things that you think the consumers want the early access to sporting events, to concerts, the different types of exclusivity I think everyone struggles with of what do they bring in next to their loyalty program was actually not the highest ranking things. So the highest ranking things that we were seeing was birthday bonuses, sign on bonuses, referring friends. It was very self-serving, which isn't a selfish way to look at it. It was a nice reminder that when you're thinking about that strategy, keep it simple for your consumer to earn. Keep it simple for your consumer to get those rewards. That's rewarding to them. So I can't tell you what our very next thing is. I think we left the recent conference with. It gave us a different perspective of we have to think outside of the box, but we have to think in a very simple manner of what is additive to that patient's value.
Speaker 1:That's really interesting and kind of leads me to my next topic. You know, something that we've discussed in the past is the importance of engaging younger consumers, and we know that's something that many beauty and aesthetics brands are actively working on, you know, especially as Gen Z has more buying power and so there's a new kind of cohort of consumers that need to be communicated with. Brands are finding that there's a gap between what Gen Z and millennial audiences say they value, like personalization or purpose driven brands or those kind of VIP experiences but there's a gap between those and how they actually behave when choosing treatments or providers. Have you seen some of this disconnect within your customer base and how is MERS addressing the challenge of engaging this next generation of consumers?
Speaker 2:Yeah, I mean I always laugh. I was like I have a wonderful team. Our loyalty team here is undoubtedly, I think, probably the best loyalty team there is in aesthetics. But we laugh across our team. We see the generational gaps. So it's always eye opening, even looking at our own little loyalty family here at MERS, what we understand and the value and the ideas that someone my age, which will you know, remain unsaid versus some of the people in the team that are younger.
Speaker 2:It has been interesting to go through those conversations of how do you evolve a loyalty program to fit what is now a very wide audience. So, as I mentioned before, the grandmothers and mothers of my time that would not speak of their aesthetic treatments are now those Gen Z to young millennials who are very open and the way that they're deciding to spend their money and the way that they're deciding to take care of themselves often varies. I think everyone that we're seeing is becoming more aesthetically conscious and the conversations aren't taboo, but I can't tell you that we figured out that perfect code. I think consumers today are seeking an overall holistic approach to beauty and wellness. I think those value adds are a little different and at the end of the day. It does have to be what is bringing the most value, and I say that ending in a question mark.
Speaker 2:So that was my very long answer. Ethan, we're not quite sure yet. I think easy earning, easy rewards, easy discounts are table stakes. But where is that next thing that really has that tipping point with those audiences? I think everyone's trying to crack the code on right now.
Speaker 1:Absolutely. I've heard a lot of different attempts at it, but I don't know if anyone's I was hoping you were going to give me the hot take.
Speaker 2:Give me the code.
Speaker 1:If I had one I'd share it with you. I think you know it's kind of industry specific in a lot of cases and you know everyone's trying to figure out that digital and IRL experience that's going to really create loyalty and create value for those customers. So absolutely.
Speaker 2:That's what makes it. I will say, of all the things I've done in my 20 years of marketing, loyalty has been the most fun, the most frustrating and difficult, but most rewarding, because it really is. Marketing has always been how to speak to people, how to connect with people, how to drive those decisions, but loyalty adds such a complex but challenging layer on top of that.
Speaker 1:Absolutely. That's why we do what we do and why we have this podcast, so folks can share these things, because that's what we're here for, and that's what we're here for. So what would you say is the next big?
Speaker 2:thing for customer loyalty and customer experience that your brand is focused on or something that you're looking at investing in. This year, I mean, I think for us investing, there are going to be two areas that we have a very large focus on because we have two very important audiences. We're never going to give up on simplicity. Feedback that we get from our health care providers are we are the most simple program to use and I'm challenging our team of I believe we can make it even more simple. We need it not to be duplicative. I want it to be additive to the day to day and the life of their offices and the life of their patients. So for me, the focus on the provider side over the next couple years is we want to drive on the B2B and B2C loyalty program side. We want to keep it simple, profitable and easy to use so that provider feels the value for them and for their patients. Now, on that patient side, I don't have exactly what the next big thing is, but I think you know some of the additions we've done to the program this year is starting to set us apart, which is technically it's pretty hard to do.
Speaker 2:In aesthetics, a lot of the programs are running table stakes.
Speaker 2:A lot are following each other, but that's where we're challenging ourself of.
Speaker 2:I think we have to think a little bit larger than aesthetics of how we want to connect with those consumers and those patients, because aesthetics really ties into such larger areas of your life with health and wellness. So, you know, I don't, I don't have once again here's, here's what you can see from us over the next year, but we're going to keep it simple for our providers. We want it to be enjoyable for them. We do not want it to be something that they feel like they have to do. And for the patients, we just want them to feel valued. We want them to understand the value of the program because it is still fairly new in the market. We want to grow that awareness and we want to see them keep coming back and engaging with the program, because we're going to be very open this year of getting the feedback of, as a patient, what do you want from us Because that's where we're going to find the most value is being very feedback driven and how we enhance the program.
Speaker 1:That's a great place to start. But, looking back on your successes, what are two or three things that you're most proud of for your program?
Speaker 2:Yeah, I think you know the top three. I've already said this word. It's easy to use, it's the biggest compliment that we get. That's where we want to. You know, stay focused and we're proud of that. But we also added a reward store for a patient and we're proud of that.
Speaker 2:But we also added a reward store for a patient. So this was the first aesthetic facing reward store that that patient is earning those points in a provider's office and they have historically been able to use and redeem those points for discounts. But now they can sit at home, redeem from their phone to get skincare delivered directly to their doorstep. So that provides a new dynamic layer that really kind of matches how they're living their life outside of an aesthetic office. So that provided a new dynamic for our program and an opportunity for patients to engage with us differently. So that was a huge win for us as well. And then I would say it's just been the overall growth of the patients in the program. I completely give, you know, kudos to our providers and the support that they've given us and our products and the program. That is what has driven us to over 1.4 million members. That, to me, is, you know, something worth celebrating.
Speaker 1:That's awesome. It definitely is. That's awesome, it definitely is. Well, the last question I have for you, and somewhat self-servingly what can Loyalty360 do to help you and your program's growth?
Speaker 2:You know it's going to be such an easy answer. I think it is just bringing everyone and loyalty together so everyone gets very focused on their industry or what their competitors are doing and just sometimes keeping their program going and running smoothly. And Loyalty 360 has really given you the opportunity to come together with all types of loyalty partners across the industry. So to me that has been the biggest value is look up from aesthetics, look up from your retail part of the industry, because while loyalty programs are 100% the same across the board, they are also so different. At the end of the day, we are all speaking to the same consumers. Which consumers and where are we meeting them? And their lifelong journey may be different. But I think that's the biggest value that Loyalty360 provides is it's a community for us to come together to drive success across consumers.
Speaker 1:That's amazing. I couldn't have said it better myself. So for all you brand marketers out there who aren't members, now you know why it's so great to be a part of Loyalty360.
Speaker 2:Yeah, and there's very few places. I always tell everyone. Anytime I have the opportunity to speak to an audience, I always start with tell me your favorite loyalty program. It was so nice to be in front of an audience and say oh you are the loyalty program, so you are your own favorite one. And to be a part of a community where we all talk in points was my running joke of we talk in points, we talk in redemption. That's a unique experience and it's a great platform that Loyalty360 provides.
Speaker 1:Awesome. Well, that brings us to our world famous quickfire questions. We like to keep the answers for these to like one word or phrase just as fun way for the audience to get to know you a little bit better. So I'm going to jump into it. What is your favorite word?
Speaker 2:I have too many words. I have too many words. The awful first quickfire question.
Speaker 1:What is your least favorite word?
Speaker 2:You know this comes from, you know, a traumatic. I don't know why. It was embedded in me at a young age. I don't know why. I don't like the word belly.
Speaker 1:I don't know what excites you.
Speaker 2:You know, if I was going to stay focused on my professional life, what excites me is providing a great customer experience. But if I was going to stay focused on my professional life, what excites me is providing a great customer experience. But if I was going to answer as a 43-year-old with a hobby, what excites me is winning a tennis match, because that's what I like to do outside of work.
Speaker 1:Awesome. What do you find tiresome?
Speaker 2:Tiresome, whether your personal life or professional life, I would say. Facing people that are indecisive. That is tiresome. I am overly decisive and I like to pick a path and move forward.
Speaker 1:What book do you like to recommend to colleagues?
Speaker 2:To colleagues oh wow, I don't know about colleagues and I usually get a lot of mixed reactions about this. I am a huge fan and I have been for a number of years since high school of the great Gatsby, so you know people either love it or they hate it.
Speaker 1:Awesome. What profession other than your own would you like to attempt?
Speaker 2:A philanthropist. I would love to be, you know, independently wealthy. I would love to be very helpful in the world, you know, as soon as my potential pro tennis profession dies out.
Speaker 1:What do you enjoy doing that you don't get to do often?
Speaker 2:I would say isolated vacations. I just came off. It made me realize. I just came off seven days being completely disconnected from the world, reading a lot of books, enjoying the quiet. I think in our normal life, our personal and our professional life, we're always connected right. We always have a phone, we always have the internet, we always have someone contacting us. So I think that made me realize after this last vacation I don't get to do that and I should carve out more very specific time to have that type of break.
Speaker 1:Awesome. Who inspired you to be the person you are today?
Speaker 2:My grandmother, my grandmother whose name is Tynesie. She was a very independent, decisive lady that believed life came with challenges, and challenges weren't hard. They were something to celebrate when you got through them, and I feel like that is what has shaped me and has led me through my future.
Speaker 1:Awesome. What do you think about at the end of the day?
Speaker 2:Oh, what time is my next meeting? In the morning. I think that is what usually crosses my mind right before I go to sleep. But you know, I am a working mother, so you know what I typically think about is a running list of what tomorrow holds.
Speaker 1:And how do you want to be remembered by your friends and family?
Speaker 2:And how do you want to be remembered by your friends and family? I want to be remembered as someone who cared about them as much as they cared about me. I think as you get older and you do have loss in your life, that makes you understand how you remember people and it kind of makes you think differently of how you would like to be remembered people and it kind of makes you think differently of how you would like to be remembered. So I want my friends and family to remember me as a kind and caring person that felt reciprocal to them.
Speaker 1:Amazing. That's wonderful. Well, Donnery, thank you so much for taking the time to speak with us today. This was a wonderful interview. It was great talking with you and getting an update on MERS Aesthetics. We really appreciate you giving us your time and I look forward to hearing more about your continued success later in 2025.
Speaker 2:We look forward to it. You're going to see us again at Loyalty360 with all types of good new things to celebrate. Thank you so much for your time today.