Arvind Mills promoted Megamart – Value Appreal retail chain had launched SmartOne loyal customer program at its stores across India, 9 months ago. It is a stunning success in its own way. SmartOne currently has 3.5 lakh loyalty card holders, sure far lower than the enviable 14 lakh First Citizen of Shoppers Stop.
Why do we call SmartOne a success ?
Megamart is catering to Value Retail chain and not Lifestyle segment. In the former, the consumer / customer has lots of avenues to move to and hence getting 3.5 lakh customer base as a platform is a commendable job. The company gets first hand information by profiling customer shopping habits and hence can easily cater to their retail needs – from SKUs to arranging the products in-store which the customer is most likely to pick up.
As we speak of loyalty customer base as a platform, the company tested waters by launching an offer to any consumers whose bill over minimum 3 purchases exceeded Rs 6,000 within a 60 day period were eligible for FREE Gifts. Look at the sales numbers, Week Day sales has shot up between 20-25%, while weekend sales has shot up between 30-35% and major part of it coming from SmartOne card holders.
The offer aside, SmartOne card holders contribute 15% of the sales today, while the management is hoping to double this to 30% by 2011.