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Case Study

In: Computers and Technology

Submitted By runwildkid
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PROPOSAL

ABSTRACT
Express, LLC is a growing company. It continues to meet and exceeds net sales every year and a program to reward our loyal customers will only make the company better. Express Next is a point-dollar reward system that engages customers into the brand. Companies, such as, American Eagle Outfitters and GUESS have created such programs and with the comparison of before and after financial reports it boosts net sales by more than 30%.

INTRODUCTION
Express Next is a point-dollar reward system that affiliates each dollar spent with 10 points. The more points a customer accumulates the better a reward they will receive. There will be a two tiers of loyalty. A Base tier, the beginning tier, that rewards a customer with 10 points with every dollar spent. And a A-List tier, the advance tier that is gained when a customer reaches a certain amount of loyalty, that rewards customers with 15 points with every dollar spent. There will be a two quarter beta program to be held at various locations that have the top volume in the company and will be launched in the beginning of the upcoming fiscal year. This loyalty program will increase sales up to 30% percent and start a clientele-esque program.

LIST OF SOURCES

Berman, B. (2006). Developing an Effective Customer Loyalty Program . California management review , 49(1), 123.
Demonstrate how to create an effective program that will increase net sales
Chen, M. (2005). Mining changes in customer behavior in retail marketing . Expert systems with applications , 28(4), 773. doi:10.1016/j.eswa.2004.12.033
Show that the proper marketing and phasing of the program will benefit the companies finance
Clifton, D. E. (2005). AECO Annual Report. AECO Investor Information. Retrieved March 17, 2012, from http://phx.corporate-ir.net/phoenix.zhtml?c=81256&p=irol-reportsannual
Compare results before and after the All-Access Pass program came into effect
Maricano, M. (2005). GUESS Annual Report. GUESS - Investment Relations. Retrieved from http://investors.guess.com/phoenix.zhtml?c=92506&p=irol-reportsAnnual
Compare results before and after the GUESS list program came into effect
Moellering, M. C. (2011, March 22). 2010 Annual Report. EXPRESS: Investor. Retrieved March 17, 2012, from https://materials.proxyvote.com/Approved/30219E/20110418/AR_89018/HTML2/express-ar2010_0119.htm
Present the current years net sales and the prediction, in comparisons to others, of increase

DATA ANALYSIS
The data presented is the annual reports of competing companies. American Eagle Outfitters and GUESS are two companies that started a customer loyalty program. The reports show their net sales before the program started and the following year after the program came into effect. The annual reports of the following years after the first year after the program are also represented. This is to show that with a customer loyalty program net sales increased and continued to remain at an increase higher than the year(s) that the program did not exist. There is a 30% increase of sales and in each company and a continuing growth of the competitors. If Express, LLC wants to compete with similar brands a customer loyalty program will drive average customer conversion by 3-5%

KEY POINTS
• Express Next is a customer loyalty program that rewards dollars with points which in turn rewards points with a benefits up to $95.00 off a purchase.
• There are two tiers; Base and A-List
• There are two cards; Express Next and Express Next+Credit Card
• The Express Next Card will give customers 10 point to each dollar spent
• The Express Next + Credit Card will give customers 15 points to each dollar spent
• The Base tier will begin with a $10.00 reward after 2500 points are earned
• The A-List tier will begin with a $15.00 reward after 2500 points are earned
• Each loyal member will receive a Birthday Gift from Express, LLC
• It will require a two quarter BETA to be held in the top highest volume stores in the company
• After the test, the program will go live in the first quarter of the new FY
• American Eagle Outfitters created a similar program called American Eagle All-Access Pass. It rewarded customers with points and improved their net sales throughout the years after it came into effect
• GUESS and GUESS by Mariciano created a program named the GUESS list. It awarded customers with special events, promotions, and rewards earned by spending money at certain locations. It proved to increase their net sales and drive customer loyalty throughout the three branches that GUESS offers. It still is a major part of what drives a customer in each store.

EARLY RESULTS AND CONCLUSIONS
If Express, LLC wants to grow as a company it needs to learn from other competitors. Just as we compare prices points and merchandise to competing companies we need to compare ideas and programs all companies offer. American Eagle Outfitters and GUESS offer a customer loyalty program that shows in their financial reports that it increased net sales and is more and more successful each year. If Express, LLC creates Express Next, a customer loyalty system, the pattern, showed by competing companies, will continue and increase the companies net sales, average dollar sale, and average customer conversion. It will cost the company about .5 million dollars, but increase the sales by over 1 million.

SUMMARY OUTLINE
The report will be broken into four sections. The Introduction, which will briefly explain the program. The Competition, which will compare financial results of competing companies with similar programs. The Future, which will demonstrate the increase of sales, net conversion, and ADS within the entire company. The Breakdown, which will explain the customer loyalty program in depth and how much money it will take to create it. And the conclusion.

CONCLUSION
Express, LLC is a company that is ready to grow into a new generation of retail. As much as we focus on the customer already a program defining a customer is what is next. The Express Next program is a customer loyalty program that focuses on the customer and benefits them, as well as the companies net sales. On every qualifying purchase the customer is rewarded points which will accumulate into a rewards and perks solely based on the customer’s loyalty and interaction with the company. Much like the competitors with programs like All-Access Pass and the GUESS list our sales will sky rocket. This is what is next for the company, this is what is next for the customer, this is Express Next

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