This customer loyalty program that treated good customers like employees resulted in a 900% increase in sales.

    Sears VIP customers were put “on the payroll” and regularly received a Sears “paycheck” that they could cash in toward any Sears purchase.  Like employees, they could receive periodic raises, get bonus checks, plus receive invitations to backroom sales and have the opportunity to purchase new shipments that were not yet available to the public.

    Offers were individually targeted based upon behavioral modeling and demographics, e.g., pregnant customers got maternity leave and benefits.

    Recommended enhancements included company picnics, commuter subsidies, performance awards, and vacation pay.

    Why does it work?  Results proved Sparks research and analysis predicting that customers would be motivated to “cash” paychecks, which they would see as cash-in-hand and put immediately into their wallets.  The checks had much higher perceived value than the sea of percent-off offers.

 

Sears® Salary  (patent pending)

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