Giant retailers bank on card schemes for customer loyalty

       Leading hypermarket chains are competing in the launch of loyalty card programmes to retain customers amid the current economic recession.
       The move follows changes in the behaviour of shoppers who have less loyalty to any particular store and prefer to switch their purchases to other stores depending on special promotions.
       Jariya Chirathivat, vice peresident, marketing and communications, Big C Supermarket, said the competition among hypermarket chains is more intense as their retail sites are located in close vicinity. So, individual shoppers are able to switch from one store to another easily.
       "Amid the current economic difficulties, consumers are switching to hypermarkets along with their temporary promotional campaign. What we [Big C] want to do is to launch a loyalty programme to retain our customers and prevent them from switching to the other stores.
       "Under the loyalty programme, our existing clients will not be tempted by any temporary promotion launched by our retail rivals," said Jariya.
       Big C Supercentre yesterday unveiled the 'Bigcard' to best satisfy consumers with uniquely remarkable benefits featuring 'Instant Money Back and Monthly Crazy Price' that give consumers up to 1 per cent cash back with Bt5 for any purchase over Bt500 and monthly price promotion on a wide variety of mass consumer items.
       Holders of Bigcard will also benefit from special discounts at Mini Big C, Pure and other leading participating retail shops; and 'Extra Bt5' when purchasing a Bt100 food coupon at Big C food courts.
       In the past three years, Big C has gained insights into consumer behaviour through the collection of data on customers' spending habits. Based on the study, the three main reasons that motivate coustomers to shop are: price, assortment, and convenience. Any loyalty programme needs to answer and emphasise on these three criteria.
       "We expect to have about 4 million members by the end of this year, and up to 5 million members next year," Jariya said.
       She added that the card programme will increase Big C's sale by 15 per cent. The loyalty-card programme will help boost the basket size of shoppers.
       Prapapan Ploysaengngam, marketing manager at Carrefour, said the company has launched its loyalty card programme - "Carrefour I Wish - for almost one and half years, and now has about 1.6 million members.
       The company has designed various promotions and privileges exclusively for its members, including special price promotion and cash coupon.
       She said that based on the company's study, shoppers prefer immediate discount or money-back promotions rather than any point collection campaign, which takes a certain period of time for redemption.
       Yupadee Srisilapa, Tesco Lotus, senior marketing manager, Clubcard, said: "Our clubcard programme aims to give full flexibility and benefits to our customers. This is why there is no requirement on minimum spending for Clubcard holders for them to receive points. There is no expiry date for the points accumulated. The longer you stay a costomer, the more the number of points accumulated. There is also no lomit on the number of points per day. The more you spend, the more your points. Once your points have been converted to cash vouchers, they are valid for one year," she said.
       Tesco Lotus said its 'Clubcard' has received an enthusiastic response from Thai customers across the country and is more than half way towards reaching the target of 4 million customers in the first year.
       Less than three weeks after its launch, which was made late last month, more than 2 million customers have signed up for and have used their own Clubcard to start collecting points.