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	<title>Retail News Update &#187; Conversion</title>
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		<title>Retailers pitch for loyalty in tough times.</title>
		<link>http://artrm.com/retail-news/2009/04/retailers-pitch-for-loyalty-in-tough-times/</link>
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		<pubDate>Thu, 16 Apr 2009 17:48:10 +0000</pubDate>
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				<category><![CDATA[Chain Stores]]></category>
		<category><![CDATA[CRM]]></category>
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		<category><![CDATA[Retail Management]]></category>
		<category><![CDATA[Clubwest]]></category>
		<category><![CDATA[Conversion]]></category>
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		<category><![CDATA[Hypermarket]]></category>
		<category><![CDATA[Loyalty Program]]></category>
		<category><![CDATA[Nano]]></category>
		<category><![CDATA[Reliance Retail]]></category>
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		<description><![CDATA[Future, Shoppers Stop, Westside Focus On Customer Relationship Management To Beat Slump.]]></description>
				<content:encoded><![CDATA[<p>LOYALTY pays, even during a slowdown. At a time when consumer spending is on a decline, leading retail chains are either expanding or restructuring their loyalty programmes. The retailers expect such a strategy will help them increase footfalls, conversion level and ultimately drive their topline growth.</p>
<p>While the likes of Future Group, Shoppers Stop, Westside and Reliance Retail are driving the focus on customer relationship management (CRM), restaurant chains like Speciality Restaurants (SRPL) are also gung-ho on the same. “The CRM programmes are important for any retail chain and they work, especially during a recessionary trend. They give customers some comfort and ensure that they keep coming back again and again,” SRPL chairman and MD Anjan Chatterjee told ET.</p>
<p>SRPL’s loyalty programme currently has 70,000-odd customers within its folds, who account for 30-35% of their sales. “We are now planning a marketing blitz to penetrate into 70% of our target audience by July-August,” said Mr Chatterjee.</p>
<p>Within six months, Future Group is planning to roll out a single loyalty programme that spans across formats. The group is currently investing heavily on the IT backbone. Currently, the group’s Green Card loyalty programme at Pantaloons accounts for 55% of sales.</p>
<p>“As the first step towards a uniform loyalty scheme, we have rolled out a prepaidcum-loyalty card in Pune and Kolkata. We’ve clocked nearly Rs 15 crore business out of this. Eventually, we expect 70% of our sales from lifestyle formats to be generated from loyalty scheme customers,” said Future Group president-customer strategies Sandip Tarkas.</p>
<p>Interestingly, Reliance Retail already operates its ‘RelianceOne’ loyalty programme across formats with four million customers. “We see a significant percentage of our sales coming from our loyalty card holders,” said a Reliance Retail spokesperson.</p>
<p>Shoppers Stop has just launched a new loyalty scheme for its hypermarket ‘Hypercity’. “The loyalty programme is a long-term strategic initiative, which drives repeated purchases. We add nearly three lakh customers under loyalty every year,” said Shoppers Stop MD BS Nagesh. As of end-2008, the retailer had more than 11.8 lakh loyalty members.</p>
<p>Westside has relaxed the entry norms for its loyalty programme ‘Clubwest’ to cash in on the large footfalls the store is witnessing due to Nano bookings. Earlier, to become a silver member, one had to shop for Rs 2,000 on one occasion and register. “Now, a customer can enrol for the programme even by shopping for Rs 500 and subsequently get upgraded, if he completes Rs 2,000 billing within three months,” said Westside marketing-head Smeeta Neogi. The chain currently has over eight lakh members, who generate over 50% of sales.</p>
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