How VIP Promotions To Existing Customers Help Close Walk-In Traffic

There's been a trend lately to hold VIP events in retail stores to bolster sales at a particular location. This is an old idea that has found new life in today's retail environment. And while invites are sent out specifically to existing customers, we've found that if you orchestrate the event right and promote it in-store with the right signage, it actually has a bigger impact on walk-in customers.

A turn-key program. Many furniture retailers have been using a company called 3-Keys VIP to provide them with a turn-key VIP program. This is how it works. We manage all the transactional data for these clients and pull a list for each store location of which customers are our best prospects for the event. Then 3-Keys VIP uses these lists to create a "Today Only" promotion driven by email, robo calls and sometimes direct mail. The messaging invites the existing customers to come in and pick up their gift for being a loyal customer. This generates traffic, but what it really does is improve conversion.

Getting new customers and new customer data. We worked with 3-Keys VIP to design bold signage in-store that is visible to everyone who enters the store. A work station is set up with the signage around it and people working it to give away the gifts. The big and bold message on the signage is "Today Only! VIP Customers Save 15%." This let's the VIP customer know where to go to get their gift, with no purchase necessary. However, what happens is, walk-in shoppers will come over and ask how they can get the free gift. They are told they simply need to give us their name, address, email and phone number, along with permission to contact them and they can have the free gift with their purchase. Not only are they motivated to buy, they have given you valuable data that's hard to get for new shoppers.

A great closing tool. The prospect of getting 15% off their purchase, but only if they buy today, motivates people to buy now. When we have analyzed the data from these events, we see traffic is up 25 – 35%. But when you look at sales during those events, they've doubled! That means that two-thirds of the sales that day come from people we didn't contact. They were walk-ins that were closed thanks to the offer.

When is the best time to run a VIP promotion? If you run these promotions on a weekend where you don't have a TV buy, the promotion becomes very affordable. It's also good for "sick stores" who need an extra boost in sales. We feel the promotion could actually be used as a pressure point on a holiday weekend or as the kick-off for some other big event, like an Anniversary Sale. You could run the promotion quarterly, or even once a month, if you're rotating store locations.

So, as you can see, VIP promotions can have multiple benefits when done right. Have you tried them? What has your experience been? If not, why not try gifting your way to success. I'd be happy to show you how.

Michael Morin, an EVP talking VIP