StORES Magazine - August 2007 - (Page 20)

UPFRONT She Loves Me, She Loves Me Not . . . HE FINDINGS of a study released last month suggest that customers believe they are having “relationships” with the various retail chains they shop, but there remains room for improvement. The research, conducted by Carlson Marketing and leveraging the expertise of Peppers & Rogers Group and online survey pioneer Zoomerang, compiles the feelings of nearly 1,200 consumers. Building better relationships in retail “certainly makes common sense,” says Luc Bondar, vice president of loyalty marketing for Carlson. “But at the end of the day, does it actually enhance customer recommendations, retention and intent to shop more with a specific retailer? The answer is yes.” Bondar cites Barnes & Noble, Hallmark, Bath & Body Works, Best Buy, Old Navy and Target among the retailers that win kudos for relationship-building. Still, the strength of customer relationships ranges widely, and the findings suggest that in all cases, there is an opportunity to raise the bar. T DRIVE STYLE H Among the research takeaways: 1 2 3 4 Loyalty programs drive incremental purchases. One-third of customers say that participation in a loyalty program has resulted in the purchase of additional products. Nearly two-thirds (64 percent) of customers report that familiarity with a brand name plays a role in the choice of a retailer. Shoppers overwhelmingly agree that maintaining a “relationship” with them means making a commitment to the basics: having the best price and good selection still weigh heavily in the “where to shop” decision. It’s important to note that “satisfaction” is not sufficient to keep the relationship fires burning. Forty-one percent of customers are at least as satisfied with other retailers as with their primary retailers. In fact, 51 percent of those polled say there are many other good retailers – any one of which could serve as an alternative to their primary retailer. ave you seen the Volkswagen Eos? This new entry in the convertible arena has a standout feature: a hard-top that folds neatly into the trunk with the push of a button. Buying one will set you back around $29,000, and availability is extremely limited, at least for now. Still there is a solution for shoppers who find themselves with a bad case of car lust. Volkswagen has created an online Eos boutique. The German-owned company has partnered with Lutz & Patmos, Hable Construction and Sigerson Morrison to create Eos designer gear. Each piece is custom created for “top-down cruises” or nights walking the town. There are only a handful of items available so far – and they’re not nearly as expensive as the car. Still, the Sigerson Morrison Driving Slip-on ($150 to $200) and the Lutz and Patmos Origami Wrap fashioned from a cashmere wool blend ($395) could put a dent in your wallet. macists Association were opposed to the changes, arguing that the cuts would have a disproportionately negative effect on smaller pharmacists and the patients they serve. The “final” rule was released July 6, calling for the cuts to be deployed with little change from the original plan. Steven Anderson, president and CEO of NACDS, describes the ruling as “simply unacceptable,” noting that “CMS took a few actions that, while headed in the right direction, are not nearly sufficient to remedy the legitimate concerns of community pharmacy.” That sentiment was echoed by NCPA president John Tilley, who says the ruling “tells community pharmacies that fair and accurate reimbursement for helping eco- Bitter Medicine S TORES’ April cover story (Strong Medicine) explored how pending Medicaid regulations threatened to cripple community pharmacies. At the time, the Centers for Medicare and Medicaid Services (CMS) proposed $8.4 billion in Medicaid cuts over the next five years, implementing President Bush’s Deficit Reduction Act of 2005. More than 90 percent of those cuts were to come from slicing pharmacy reimbursements for generic medications. In addition, proposed regulations called for a new definition of average manufacturer price and a new formula to calculate reimbursements on generic drugs. The National Association of Chain Drug Stores and the National Community Phar- continued on page 24 WWW.STORES.ORG 20 STORES / AUGUST 2007 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of StORES Magazine - August 2007

Contents Executive Editor's Page President's Page Upfront NRF News Retail People Concept2Watch Supermarkets Cover Story Online Marketing In-Store Marketing RFID Data Management Payment Systems Software Loss Prevention E-Commerce Risk Management Communications Loyalty Marketing Human Resources Mobile Commerce Loeb Retail Letter Arts Update Point of View Advertising Index Retail Industry Calendar

StORES Magazine - August 2007

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