How the web is core to a True Value marketing and loyalty program
TruServ, the cooperative that is parent to True Value Hardware, is rolling out to its stores a web-based customer loyalty and marketing program from database and direct marketing company Insight Out of Chaos, Spencer Hapoienu, president of Insight Out of Chaos, tells InternetRetailer.com.
Under the program, local stores sign up customers to a loyalty program. Customers identify themselves as program participants whenever they buy something. Insight Out of Chaos gathers loyalty information from True Value point of sale terminals every night and updates participants’ status. Store owners then access a web site to find out the status of their customers and to devise e-mail and direct-mail marketing campaigns based on the behavior of their loyalty customers.
“The web is the core to the whole thing,” Hapoienu says. “It allows the stores to be independent and run the programs themselves with guidance from corporate marketing at TruServ. It puts the stores in the driver’s seat by allowing them to make all the marketing decisions based on the customer data.”
The loyalty program involves rewards of one point per dollar spent, with each 250 points redeemable for a $10 reward certificate. Members also get discounts on selected merchandise.
Stores have experienced an increase in sales—including in higher ticket items such as grills and lawnmowers—and more efficient marketing spending, Hapoienu says. “With the discounts and the better customer service, this allows local stores to compete against Wal-Mart, Target and Home Depot,” Hapoienu says.
Back...
