OREANDA-NEWS. On May 24, 2007 X5 Retail Group N.V., the largest retail company in Russia by sales volume, announced the preliminary results of its Club Perekrestok customer loyalty program that was launched at the end of last year, reported the press-centre of  X5.


Three Perekrestok stores in Khimki launched the Club Perekrestok pilot program on November 20, 2006 and confirmed the program’s success within a month. Starting January 10, 2007, stores in Moscow and the Moscow Region began exchanging Perekrestok and Merkado discount cards with Club Perekrestok customer loyalty cards. On April 4, program cards became available for distribution at all Perekrestok stores in Moscow and the surrounding region.


The new program replaced the old discount and sale programs at the chain’s stores. However, Perekrestok retained the 5 percent discount for pensioners, disabled people and other socially vulnerable customers. The Club, in cooperation with municipal authorities, also gives priority to families with multiple children.


Now, within the framework of the program, customers who make regular purchases at the chain’s stores can earn points on Club Perekrestok loyalty cards and then pay for purchases with saved points. Points are earned for every purchase and 10 points are the equivalent of 1 ruble. Additional bonus points are put on the card for purchases over 500 rubles made in the morning, buying Perekrestok private label brands, purchasing brands that are subject to special promotions and if it is the customer’s birthday. At any time, customers can spend any amount of points that they have saved on products at Perekrestok.


Club Perekrestok uses additional receipts, text messages, the site www.x5club.ru, a Call Center at 8 (800) 200-9-555 and emails (with blank forms available at the Club’s site) to maintain personal contact with customers. When joining, participants receive two plastic cards: the primary card (that allows earning and spending points) and an additional card (which only allows points to be earned). The rules for participating in the program are also included in the starter kit. This kit is given to all customers who fill out the 99 ruble application form at a store. This money is then placed on the customer’s account in the form of 1000 points, which is available immediately on the card.


Even though distribution of the cards only began a month ago, already 12 percent of purchases and 18 percent of turnover in Moscow and Moscow Region stores are made with Club cards. Card holders’ average bill is characterized by a higher sum of purchases (60 percent larger) and more stable seasonal purchases, which confirms the accuracy of the program’s ability to target the most loyal segment of Perekrestok customers.
As of May 1, 2007, the Club had over 200,000 active participants.


“The Club Perekrestok program has already proven itself to be easy and effective for customers to use. It is particularly pleasant to note that almost all discount card holders have exchanged them for the new loyalty cards. Plus, new customers that didn’t hold discount cards are signing up for the program,” said Ekaterina Elpatevskaya, X5 Retail Group’s Director of Customer Loyalty Programs. “It is not surprising, because it gives customers the opportunity to spend earned points on any products, unlike other discount programs. Customers don’t have to wait to earn a specific number of points before they receive a fixed prize”.

“But the main difference the new program offers is that it was created as a program for regular members of the Club for whom a visit to Perekrestok should be not just a trip to the store. It should be a visit to the Club that gives specific privileges for its most loyal members. The key to the Club’s success should be the creation of a database of its members which will allow Perekrestok to formulate individual offers for program participants and thereby capture their interest even more,” Ms Elpatevskaya added.


Furthermore, in connection with the fact that X5 Retail Group is an official sponsor of the Russian National Football Team, Club Perekrestok is preparing special offers for its members that will be available in the vestibules of qualifying round games for Euro 2008. Detailed information about this promotion will soon be available on the Club’s site and at Perekrestok stores. The Club’s ability to help sell products has attracted the interest of many of Perekrestok’s suppliers. Test campaigns are now being held in partnership with suppliers that cater to customers from target segments. Initial and follow-up communications are made and customers are offered additional points when they purchase the products of the supplier that is sponsoring the campaign.