StrateScapes - Never Stay Static


		Excerpted from StrateScapes - Volume 5, Number 1

Never Stay Static
More than half of companies implementing CRM initiatives today will view those plans as failures by 2006. Someone should tell that to Pier 1 Imports, whose CRM strategies keep pace with evolving consumer tastes.

Pier 1 Imports was on a roll. Having captured over 50 percent credit-card-sales penetration with a cardholder loyalty program launched in 1994, the home-decor retailer didn’t wait long to go for more.

Pier-1-upmanship
In 1998, Pier 1 Imports sought a partnership with CCG that refined its cardholder tiers, enhanced program benefits and heightened the impact of cardholder communications.

The results proved out in markedly increased purchase frequency, spending per transaction, spending per customer and tier-upgrade momentum. And greater share of wallet was evident in the number of new and upgraded cardholders — a number that was 48 times higher than forecasted.

On to the bigger and better
Taking its next step toward customer-centricity, Pier 1 Imports called on CCG for customer profiling and segmentation. Through leading-edge analysis and datamining techniques, CCG is helping Pier 1 Imports:

Identify unique customer segments.

Uncover purchase drivers within segments.

Refine program elements and create new programs for specific segments.

Use redefined customer segments to distinguish and target new prospects.

Reveal growth opportunities.

Pinpoint products that attract certain customers and increase sales from specific segments.

Pier 1 Imports’ CRM initiatives are paying off — and Pier 1 Imports stock is up 135 percent since program inception. In an economy where retailers are turning in dismal sales figures, that’s a bigger success than anyone could have predicted.

STRATESCAPES and STRATESCAPES SUPPLEMENTS are published by Customer Communications Group, Inc., a full-service agency specializing in relationship marketing and customer communications. Our comprehensive, turnkey services include data analysis, customer segmentation, strategic consulting, account management, creative execution, print production and multimedia solutions.