Pier 1 Imports
Destination Revitalization

Ever notice how, if you stare at something long enough, it just seems to disappear? Pier 1 Imports’ customers must have felt the same way. In 1994, when Pier 1 Imports launched their preferred-customer program, the customers took note, and card usage surged. But after four years of hearing the same message and seeing the same collateral, customers no longer seemed to notice (or care about) the program, and card usage waned. Clearly, the program needed a fresh approach so it could start turning heads (and driving card usage) again. And who better to give it a jolt than a company on the cutting edge of preferred-customer program strategy?

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

Putting the Pier 1 program strategy under a microscope, we discovered two main obstacles keeping the program from maintaining its momentum and continuing to influence customer behavior: the tiers and the rewards. So we created more distinct and appealing tiers, making it more rewarding for customers to move up through the ranks. Then we made the benefits and rewards more tangible by increasing their frequency and relevance. With a stronger foundation for the program, we updated the communications pieces, making them more noticeable in the mailbox, more focused on the benefits of the program, and more personalized with information tailored to cardholder interests.

A Change for the Better

Initial results showed a much stronger response to the revised spending levels and associated benefits than anticipated …

The first wave of customers who earned tier upgrades under the refined program was twice the forecasted amount — the direct result of increased spending.

The number of new customers welcomed into the program, along with the first wave of upgrade customers, was 48 times greater than predicted.

Average “best customer” spending has increased from $692 in 1999 to $841 in 2001 for the same group.

Shareholder value has increased 135 percent since program inception.