Whats's the use of customer cards?

Homebase is second only to B&Q in the league table of British DIY retailers. Together with Argos it forms the Home Retail Group, which reports consolidated sales of just on £ 4.2 bn (€ 6.1 bn). Homebase recorded sales of £ 1.594 bn (€ 2.328 bn) in 2006 with 310 stores and a workforce of 15 000. Lucia Juliano is responsible for the data provided by all the company’s customer cards. Diversification of the standard range “We carry 30 000 articles in our standard range of products. We see its diversification as a great challenge. We sell paint and lawnmowers, bathing caps and kitchens,“ says Ms Juliano. “On the other side we have a very heterogeneous customer base. We have customers who come into our stores knowing exactly what they want, and we have others who are looking for ideas and are grateful for any guidance.” Customer card as sales generator Homebase developed a loyalty programme featuring a customer card in order to create a bond with these two groups of customers. Forty per cent of sales are now generated through the total of over four million cards that are in circulation so far. “We offer our customers the possibility of getting up to 10 per cent of their sales slip back on a later purchase. This generates an enormous amount of additional sales,” explains Ms Juliano. “What is more, we know that card-holding customers spend considerably more than those without a card.” The data also provide information on who pushes a fully loaded trolley to the checkout, and who only buys single articles; who has received how many promotional mailings, or has cashed in his bonus points. Rousing sleeping customers Among the advantages of having a customer card are the “10 per cent discount weekends” advertised by direct mailings. Holders are sent a personal letter after moving house, provided they have informed the company of the move. They are also eligible for membership of the Garden Living Club and receipt of a magazine designed to inspire them to make further purchases. Homebase is able to target “sleeping” customers as well with the help of the card data. Customers who have not shopped with their card for quite some time are sent a promotional offer in order to regain their custom. Suppliers can also benefit from the bond between Homebase and its customers, e.g. through regular supplier promotions for card-holders. Information from each use “We receive new information each time a card is swiped through a reader unit,” says Ms Juliano, “and we can do a…