Charming Shoppes
Show, don’t tell.

Charming Shoppes, the parent company of Fashion Bug stores, wanted to get more customers in the door. Not exactly a new concept in the high-stakes world of main-stream fashion. Their solution: launch a dollars-off rebate program to its 10 million cardholders.

Soon after the rebate program launched, participating cardholders were spending more than nonparticipants. But Charming Shoppes wasn’t quite convinced the program was working. Was the additional spending a direct result of the program? Were they creating a culture of discount-hungry shoppers, rather than loyal Fashion Bug advocates? They needed proof positive so they turned to us to help them find it.

	Relationship Marketing Program Analysis and Design Consulting Services Program Launch and Implementation Database Analysis and Target Audience Profiling Database Mining Contact Strategies Production Management Communications Tools Measurement and Refinement

Our analysis of the program showed that it was turning a positive ROI — it was paying for itself and then some. Good news for Charming Shoppes; but we also discovered the program could be so much more. Our research showed that:

• Program awareness was low — so we trained the in-store associates on the benefits of the program so they would become enthusiastic advocates. We also created a semi-annual newsletter, Fashion+, to increase communication with customers and keep the rebate program top-of-mind.
• Rebate requirements were too high — so we lowered the minimum charge required for a rebate, putting rebate coupons within reach of more cardholders.
• Rebate coupon redemption was lower than anticipated — so we revamped the monthly statement and envelope, to make the rebate coupons jump off the page.

Then let the numbers speak for themselves.

With CCG’s enhancements in place, Charming Shoppes’ fashion rebate program went from frumpy, yet effective, to fabulous and flourishing.

• Program participants spend 8 percent more than nonparticipants, with 10 percent earning rebate coupons.
• 12 percent of those qualifying for rebate coupons use them on subsequent store visits — and purchase an average 30 percent more than those who don’t use the coupons.
• 56 percent of store customers — including both participants and nonparticipants — know about the fashion rebate program.

“Without CCG, our loyalty program would not have gotten off the ground. The detailed analyses they provided were highly instrumental in refining and improving our program. Because of CCG, our program will never be static.”