Crossword - Consumer Relationship Management

Abstract

Crossword, a leading book retailer, runs a loyalty programme called the Book Rewards Programme (BRP). The programme was first of its kind to be initiated in the book retail industry with the aim of developing a competitive edge by maintaining a large database of regular and high value customers and their buying behaviour. It encourages people to read more through exclusive events, benefits, offers and discounts at all stores around the country. In five years, the membership has increased to 60000 members. Although they contributed 25 per cent of total sales, the number of active members was only 25000. Crossword plans to harness this opportunity. A study conducted among the customers hinted that customers were not finding the programme a significant driver in building store loyalty. The case is aimed at developing strategies for managing loyalty programmes for building competitive advantage.