I was told that if I could design a program to address this problem, they would agree to a longer term strategic partnership with my company. I started by coordinating a team to discuss and understand the key elements of their marketing plan and store opening challenges. After further understanding their customer demographics, I provided our analyst with data to create a model to select new customers and prospects who had the propensity to purchase. A database was created that included both merchants and cardmembers within a ten mile radius of four test market stores. Incentives were developed specifically for merchants and cardmembers. Merchants received quantity discounts, purchasing accounts, and special services (equipment servicing and co-op marketing). Cardmembers received a free Sandisk thumb drive and discounts on their next purchase.
Merchant mailings received 18% response rates with a high average ticket; cardmember promotions received a high double-digit response and a loyalty program evolved from it.