Why Western Warehouse has a special need to create loyalty
WesternWarehouse.com knows its products won`t interest everyone. “You either are a Western wear person, or you’re not,” says web manager Mike Padillo. As a result, offers or promotions targeting shoppers uninterested in the lifestyle that features Western-style apparel and gear are unlikely to acquire new customers. That makes existing customers the bread and butter of the web site and 27-store group, and it’s why the marketing effort focus is heavy on customer retention. It’s also what’s behind Western Warehouse’s loyalty program, called the V.I.P. program, which rewards shoppers for returning to Western Warehouse rather than taking their business to a competitor.
“Our prices and our customer service are our main way of retaining customers, but the loyalty program is a bonus,” says Padilla. For instance, customers who`ve registered for the V.I.P program get first look at new products, as well as special promotions not available to customers who simply find the web site or walk into a store for the first time.
Because the offline and online promotional efforts are for now, separate, V.I.P. members get two sets of promotions by supplying both their e-mail and mailing addresses. A V.I.P member might, for example, receive a direct mail promotion offering 20% off one month, plus an online coupon offering 25% off an entire purchase.
“The V.I.P. customer gets something extra," says Alexis Lesanski, web merchandising manager. “If the web site offers 20% off an item, for example, we try to give the V.I.P. customer an extra percentage off, so they may get an e-mail with a coupon code offering 25% off.” Western Warehouse plans to look deeper into the effect of the offers on sales going forward, but it already knows the impact has been positive--repeat customers constitute more than 50% of business, Padilla says.
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