Playbook Newsletter Issue 2
2
VOLUME 1, ISSUE 2 PLAYBOOK CONSULTANCY PVT LTD Mall Loyalty Programs - Now is the Time. India now spends it's weekends in the mall. We are witnessing a mall culture like what the US witnessed in the late 80s. Malls are the new social hotspots. This cultural shift led to the mushrooming of millions of square feet of malls in every nook and corner of the country. Every developer wanted to have a mall property and every street had one. However, it has not been a smooth ride. Today, every major city in India has more floor space in new malls lying unoccupied than rented. Most malls are not even operational because they have not been able to sell space and the ones which are operational are trying to fight for maintaining their rates and profitability in the face of decreasing revenue and profitability of their tenants. This does not mean that the malls are empty. The fact is they are teeming with people. Food courts are buzzing and multiplexes are running houseful. because they drive the two basic need of the Indian population, food and entertainment. However, the other tenants are not doing so well. The Retail Story Rising cost of real estate coupled with a reluctance on the part of the consumer to spend, average revenue per square feet is at the lowest in the last decade. This translates into retail stores becoming less productive across the country. Every Mall has the same brands. Some malls have tried to create a premium niche by exclusive stores not available in other malls. Others have tied the value format, all stores are on discounts year round. These are 1 © 2013 PLAYBOOK CONSULTANCY PVT LTD A BRAND NEW LOYALTY AGENCY IN BANGALORE WITH AN UNIQUE PERSPECTIVE ON CUSTOMERS ACROSS MULTIPLE INDUSTRIES AND SEGMENTS THE PLAYBOOK FACTS AND FIGURES • 250-300 malls over the last two years • 70-80 per cent of the spaces are lying vacant • 40% drop in footfalls across the Metros. Source: Business Standard
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Mall Loyalty Programs are mini coalition loyalty programs which help Mall to drive footfalls and main customer engagement. If a Mall doesn't have a program in place, now is the time to start one.
Transcript of Playbook Newsletter Issue 2
VOLUME 1, ISSUE 2 PLAYBOOK CONSULTANCY PVT LTD
Mall Loyalty Programs - Now is the Time. India now spends it's weekends in the mall. We are witnessing a mall culture like what the US witnessed in the late 80s. Malls are the new social hotspots . This cul tura l shi f t led to the mushrooming of millions of square feet of malls in every nook and corner of the country. Every developer wanted to have a mall property and every street had one. However, it has not been a smooth ride. Today, every major city in India has more floor space in new malls lying unoccupied than rented. Most malls are not even operational because they have not been able to sell space and the ones which are operational
are trying to fight for maintaining their rates and profitability in the face of decreasing revenue and profitability of their tenants. This does not mean that the malls are empty. The fact is they are teeming with people. Food courts are buzzing and multiplexes are running houseful. because they drive the two basic need of the Indian population, food and entertainment. However, the other tenants are not doing so well.
The Retail Story Rising cost of real estate coupled with a reluctance on the part of the consumer to spend, average revenue per square feet is at the lowest in the last decade. This translates into retail stores becoming less productive across the country. Every Mall has the same brands. Some malls have tried to create a premium niche by exclusive stores not available in other malls. Others have tied the value format, all stores are on discounts year round. These are
!1© 2013 PLAYBOOK CONSULTANCY PVT LTD
A BRAND NEW LOYALTY AGENCY IN
BANGALORE
WITH AN UNIQUE PERSPECTIVE ON
CUSTOMERS
ACROSS MULTIPLE INDUSTRIES AND
SEGMENTS
THE PLAYBOOK
FACTS AND FIGURES
• 250-300 malls over the last two years
• 70-80 per cent of the spaces are lying vacant
• 40% drop in footfalls across the Metros.
Source: Business Standard
VOLUME 1, ISSUE 2 PLAYBOOK CONSULTANCY PVT LTD
few and far less. The average mall has to compete with its nearest mall for spends and footfall.
While most brands has managed to create loyalty, very few malls that host them have managed that. In India, mall loyalty is still at a very nascent stage. For a consumer, a brand store is the same in every mall. Hence even if they are loyal to a brand, they can be loyal at any brand store across their city. This signifies a disconnect between the brand and the mall. If the anchor tenants most loyal customers are not also loyal to a mall, they will always look at the brand and not the mall.
Most Malls are moving to a leased arrangement with their retailers and this means that a retailer has lower exit barrier than before. Hence Malls now also have to ensure they have the right kind of footfall to keep their retailers happy. This is more important for small retail chains and single outlet brands who do not have a store loyalty programs.
About Us Playbook Consulting is the brainchild of Debasis Sahoo ( www.linkedin.com/in/debasissahoo )
Having constructed or managed Loyalty & Retention Programs for some of the best organizations in India, Debasis brings over 14 years of experience in Retail, Online, Telecom and Manufacturing sectors.
We have partnered with agencies who are domain experts to bring a holistic approach to any organization's’ customer retention strategies.
!2© 2013 PLAYBOOK CONSULTANCY PVT LTD
PROFILE CUSTOMERS
ATTRACT, RETAIN AND DEVELOP PROFITABLE CUSTOMERS
A MORE EFFICIENT CUSTOMER COMMUNICATION AND ENGAGEMENT PLAN
GENERATE THE RIGHT BEHAVIORS ACROSS CUSTOMERS OF DIFFERENT OUTLETS
INCREASE SALES AND AN AVERAGE TICKET SIZE FOR ALL PARTICIPATING OUTLETS
ENCOURAGE REPEAT PURCHASES
ADVANTAGES OF A MALL LOYALTY PROGRAM
1. Malls look more attractive for customers:
2. Unique opportunity to collect a more diversified and detailed information about every customer’s buying behavior:
3. Single Customer Database makes it easier for Mall Tenants to target multiple customer segments. Greater Cross Sell opportunities.
MALL LOYALTY PROGRAMS
talk to us+91.88849.88444 / +91.99726.59610
[email protected] | www.playbookconsulting.in
