 "Vinay Bhatia")
What has been the most interesting sales promotion you have engineered so far?
We have a strong loyalty and analytics programme at Shoppers Stop and using our First Citizen loyalty programme data, we got an insight that our loyal customers would rather have the option to pick their own gifts than be given a standard gender-neutral item, one that often does not match their taste. It was through this data we spotted an opportunity to create the 'Choose Your Own Gift' promotion, which was designed to give our customers bonus reward points on their purchases that could be redeemed against any product in the store. This promotion allowed customers for the first time ever to "choose the gift" while also shopping.
We wanted to give our loyal customers gifts on purchases made during the festive season. This was a unique promotion that not only allowed us to thank customers for their continued patronage but also worked as an incentive to urge them to continue to shop during the best months of the year.
Who did you primarily target with it - new or existing customers or both?
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What kind of promotion was it?
We started the campaign a couple of years ago but given the enthusiastic response, we decided to continue with it during the festive season (the October-December quarter). It is a purchase-linked offer where customers are given bonus reward points based on their cumulative festive purchases under two slabs, Rs 30,000 and Rs 1,00,000. These bonus reward points can be redeemed against any product at the store.
Why was it designed so?
The theme of this campaign revolved around the fact that one would rather have the option to choose one's own gift than be gifted a cookie-cutter standard item. Our aim was to democratise and empower the promotion for the benefit of the customer. It was also our way to expose them to newer categories, products and brands that they otherwise may not typically consider while buying. We also noticed that once the customers have the opportunity to redeem bonus points on purchases, they are actually eager to shop more. The offer has been designed to allow for a multiplier effect due to higher-ticket purchases.
What were the challenges?
No one wants to change a winning formula. Even in the toughest times, gifts like iPods, Montblanc pens, etc have worked. So mind set change was the toughest challenge. But ultimately, the choose your own gift concept was rewarding for the customer and for us as a retailer.
Who partnered you in it?
The campaign has been conceptualised, designed and executed by the in-house loyalty team of Shoppers Stop. Following the terms and conditions of the promotion, customers could pick up a range of merchandise in categories like furniture, apparel, accessories etc from Shoppers Stop, HomeStop, Mothercare and www.shoppersstop.com.
How effective was the exercise?
The campaign has been very successful. There was a 27 per cent increase in sales under this scheme. What's more, it also allowed customers to engage with the brand more frequently.
Don't sales promotions incur high long-term costs for the company?
The Choose Your Own Gift campaign is actually a self-funding scheme. It virtually pays back for itself. Customers redeemed the bonus reward points awarded to them with a multiplier effect. This incremental sale from redemption more than offset the cost of points give-away to customers.
'Choose Your Own Gift'
Aim
To give customers the option to pick their own gifts rather than giving them a standard gender-neutral item, which often does not match their taste
Target
Only First Citizen Loyalty Programme users
Plan
It is a purchase-linked offer where customers are given bonus reward points based on their cumulative festive purchases under two slabs, Rs 30,000 and Rs 1,00,000. These bonus reward points can be redeemed against any product at the store
Outcome
The campaign weeks saw a 27 per cent increase in sales
