Client X Case Study

Client X Case Study

Abercrombie and Fitch represent sophisticated lifestyle, youth, and beauty. The brand is based on the moose and a catchy logo. Though the firm started as a store for outdoor gear, it has evolved over time to address the needs young people with regards to clothing. The targeted customers for this organization are high-class personalities willing to spend a fortune for a flashy lifestyle. Therefore, the value proposition for this company should factor into consideration the needs of a working class segment.

Initial Offer

The initial discount that the retailer gets from opening the credit card should be higher and in percentage as per the nature of the purchase. To encourage extra purchases, it should be based on extra rewards points. For instance, the proposition for the client should include additional rewards for every additional purchase of the credit card. The best marketing strategy should not only keep the existing customer but also attract new clients. Therefore, the strategists should encourage Abercrombie and Fitch to notify its network of the offer to earn extra points, hence solidifying the relationship that exists between the organization and the retailer (Osterwalder & Papadakos, 2014).

Rewards

The purpose of a rewards program is to encourage customers to spend while ensuring that the firm profits from the undertaking. Abercrombie and Fitch is a valuable organization thus, it can afford a payback of a higher percentage. A strong relationship with the customers can only exist if the corporation structure non-monetary programs around the client’s values. In addition, discount codes and promotional coupons are beneficial to both the client and the firm. Consideration of non-monetary rewards, for instance selling Abercrombie and Fitch products at alliancedata.com is one of the best rewards programs that strengthen the relationship between the two firms while attracting more customers.

To market the rewards program, the website and social media are useful in reaching out to the young population that constitutes the majority of the client’s customers. It will be advertised using dollars, and each customer should spend an upwards of 10 dollars to be rewarded. The rewards will be sent periodically, for instance on holidays, birthdays and special occasions. Technologies like online payment platforms are useful in sending rewards to customers. Specifically, the customers will be encouraged to open PayPal accounts to access and redeem their rewards. Furthermore, the firm will provide additional instructions to the customers to notify them on the limits and how the rewards can be redeemed (Osterwalder & Papadakos, 2014). They can be restricted from accessing the rewards unless they are loyal customers of the organization. Communicating the rewards program and value proposition to the customer is through emails, phone conversation and posting letters. The customers should provide personal details and login information through the alliancedata.com.  Additionally, the organization can set up social media accounts such as Facebook and Twitter, where the customers can connect with the PR department to find out more on rewards programs and to be notified of the latest developments.

Birthday/ Best Customer

            The organization can partner with other strategic firms to introduce coalition programs that reward the loyal customers. In this way, Alliance Data can grow and retain its customers. For instance, Alliance Data can partner with Apple to reward loyal customers with smartphones on birthdays because a large segment is a young tech-savvy population. The move provides the customers with a relevant value as it goes beyond the specialized services of the organization. In fact, this extra step shows loyal clients that the firm care and understands their needs. On the other hand, Alliance Data can grow its network by reaching out to the Apple’s customers too.

Reference

Osterwalder, A., & Papadakos, T. (2014). Get Started With ... Value Proposition Design: How To Create Products And Services Customers Want. Hoboken, NJ: Wiley.