Business News
Virgin Megastores USA Build Up Customer Loyalty to Help Rise Above Current Economic Challenges
2008-08-11 05:00:00
Virgin Megastores USA Build Up Customer Loyalty to Help Rise Above Current Economic Challenges
Visible Results' Unique Loyalty Program For Lifestyle Entertainment
Retailer, Virgin Megastores, Continues to Help Increase Store Sales
LOS ANGELES, Aug. 11 /EMWNews/ -- North American Virgin Megastores'
commitment to its ongoing 'Virgin Important Person' (V.I.P.) loyalty
program has contributed to industry-defying growth for the retailer in DVD,
electronics and fashion merchandise sales.
The lifestyle entertainment retailer announced that its
Graphicard-based loyalty program -- devised and implemented by Visible
Results -- is performing above expectations as V.I.P. members continue to
spend at higher than anticipated levels. In the first half of 2008, the
Average Dollar Spend of V.I.P. members was 60% higher than non-members,
settling from 100% increase in average sales at the start the program in
October 2006.
George Stevens, Country Manager Visible Results USA, said the
opportunity to work with a renowned brand like Virgin Megastores has
provided an exciting illustration of how a loyalty program can successfully
integrate with a retailer's whole-of-business approach to customer
engagement, and contribute to differentiating that retailer even in
challenging economic times.
"We have enjoyed being a partner with Virgin Megastores since their
program launched in October 2006. The Virgin Megastores marketing team has
really been focused on making the in-store experience fun and relevant to
their customer base since the program went live," said Stevens. "Virgin
Megastores has shown immense loyalty to their own customers and in my
opinion that's been the key to their success, not just within their V.I.P.
program, but across their entire business."
The financial success of the Virgin Megastores V.I.P. program is all
the more impressive against a massive 15% decline in industry sales of
traditional music formats, such as CDs and LPs in 2007 compared to 2006,
according to Nielsen SoundScan.
As a forward-thinking retailer the Virgin Megastores implemented a
diversification strategy for its merchandise in 2002. Along with music,
DVDs and books, Virgin Megastores introduced fashion, electronics, pop
culture items, and consumer electronics.
Explaining Virgin Megastore's resilience, Dee Mc Laughlin, VP of
Marketing for Virgin Entertainment Group, North America said the V.I.P.
program has been a very important ingredient; when combined with the
diversification strategy, the dedication of store staff and the brand's
successful partnerships with its vendors and other suppliers.
Mc Laughlin said the real wow-factor for members are the prizes, points
and privileges. "We saw we could integrate what we were already doing, such
as live in-store events and competitions, with the Visible Results program.
The card has taken our activities to a new level -- it's not just a card,
it's an experience."
Stevens adds, "Programs like V.I.P. allow retailers to build an
insightful database that measures the real impact of all of their marketing
activities. Leading retailers, such as Virgin Megastores, are using the
information generated by their loyalty programs to make sure the money
spent on customers is both targeted and effective. I am pleased that
Visible Results has been able to play a role in their current success and I
look forward to what lies ahead for V.I.P. members."
VIRGIN MEGASTORES V.I.P. PROGRAM ACHIEVEMENTS
-- Members' Average Dollar Spend (ADS) is 60% higher than non-members
-- Virgin Megastores uplift in total store sales in 2008 is 5.55%
-- The Virgin Megastores V.I.P. program now has 300,000 members in two
markets: California and New York
For More Information:
George Stevens, Country Manager Visible Results USA
Tel: 913 383 3400 Email: [email protected]
ABOUT VISIBLE RESULTS
Visible Results is a global loyalty marketing organization that
specializes in tailoring turnkey loyalty programs that help retailers find,
keep and profit from their best customers. Visible Results offers
end-to-end loyalty program applications at the point-of-sale (POS). The
flagship product is the Graphicard(TM) -- an innovative and unique platform
that integrates a re-writable, read-write 'smart' card. Visible Results has
offices located in Australia, New Zealand, Singapore, USA, and the UK. See
http://www.visibleresults.com
About Virgin Entertainment Group
Virgin Entertainment Group is the world's leading multi-channel
lifestyle entertainment retailer, providing customers with a range of
entertainment experiences through a family of integrated Virgin-branded
businesses. Virgin Megastores and Virgin Megastore Online at
http://www.virginmega.com are integral parts of a strategy to provide
entertainment customers with what they want, how they want it, and when
they want it.
For more information, or to check out the location of the nearest
Virgin retail, go to http://www.virginmega.com or
http://www.virginmegamashup.com.
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