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Harrods shops around for customer loyalty

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11th Oct 2006
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Harrods is boosting its loyalty scheme beyond its own-brand credit card holders as part of a new in-store customer loyalty programme.

Customers will be invited to join the new scheme in-store or online following their transaction. The launch will also be supported by a direct mail campaign and in-store marketing collateral.

Harrods has already migrated 90,000 loyalty members from GE Capital Card to the new programme to form the initial membership platform, with an additional target of one million members over the next three years.

"We wanted to reach a wider selection of customers. Now all our customers can use the loyalty scheme whichever way they pay," said Jose Majluf, CRM controller at Harrods.

"Launching 'Harrods Rewards' is an integral part of our CRM strategy. It gives us the opportunity to understand our customers and their spending behaviour. Tiers within the programme will offer our best and high value customers superb additional benefits; loyalty should be rewarded."

There are four levels of benefits. For the first two levels, customers will receive one point for each pound spent. This goes up to two points a pound and three points a pound for the top level.

All customers will receive £5 to spend in store for each 500 points accrued. This means that if a customer spends £10,000 they will earn 15,000 points, which equates to £150 to spend at Harrods.

The Knightsbridge-based retail giant has appointed loyalty marketing agency ICLP to manage the programme. CLP's role is to provide the loyalty points engine and services for members. It will also handle member enquiries via its in-house contact centre and provide the fulfilment processes for the programme.

Last month, Harrods hired Andrew Morley, the former chief commercial officer of Cable & Wireless, as its first group marketing director with a brief to oversee the retail brand.

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