CRM segment B2C – in retail trade, where such systems are often referred to loyalty
programs.
What is loyalty program?
Loyalty program – a set of marketing activities for the development of repeated sales
to existing customers in the future, sell them additional products and services,
promote corporate ideas and values of other types of potentially profitable behavior.
The goal is clear – the loyalty program needs to keep regular customers. But is simply
providing cards and bonuses can achieve such a valuable result? Unfortunately, quite
often there is misunderstanding of exactly what mechanisms to use in order transform
the random client to loyal. This leads to a defective program with low-impact; it is not
adequate funds expended on it. After all, the card itself, providing discounts or
bonuses, is not enough to create a loyal customer to the retailer relationships.
Why loyalty program is needed?
Now almost all retail chains distribute cards, discounts and bonuses to their
customers. Why do they do it and what purpose they serve? The reason is simple: to
keep an existing customer is cheaper than attract a new one. The number of potential
customers does not growing constantly, so keep buyers and educate in them loyalty is
an extremely important issue. According to research, a regular customer buys more
than just a walk in, especially if the retailer considers its individual preferences.
Pull and Bear is a well-known brand which branch stores operate worldwide. It could
be surprisingly but Pull and Bear does not store any client information such as contact
numbers, purchases, amount spent on shopping, and customer’s preferences. Pull and
Bear does not have client base, discount card, bonus card. Shop does not know its
frequent buyers, nor distinguish them from random buyers. Pull and Bear never
offered a privilege to a regular client know about discount first and have more chose
before buying reduced in price item. The only thing that Pull and Bear UAE boutique
offer is the QANZ card, any person can buy a card amounted from 100 AED to 500
AED and spends it at any store or restaurant in the country where the card was
bought. There are a lot of places where the card could be applied: Bershka, Boggi,
Calzedoniya, Colors&Beauty, Columbus Café, Gymboree, Iam, Paul Café,
Koshebashi restaurant, Mango, Zara, Massimo Dutti, Marina Rinaldi, Oysho etc. Due
to the lack of loyalty program the survey took place in order to determine how people
are familiar with the brand and does the shop has regular clients. The survey chart is
showed below and according to this recommendation and suggestion were based.
Disadvantage of loyalty program in PULL & Bear forced to focus on
recommendation. (Survey questionnaires find attached in appendix).
Visit store once a year
Visit store once a month
Visit store once a week
Informative Discount SMS
Have used QANZ CARD
PULL & BEAR SHOP SURVEY RESULTS
