VIP Program (The Credit Card)

Our store calls our credit card the VIP program and our credit card holders “VIP Redeemers”. There are some great incentives for customers to sign up for it, 10% off every time you shop with it, and a $10 dollar off coupon emailed to you as soon as you are approved. GE Capital once ran a study on retailer-branded credit cards that found customer visited stores more often when they had a credit line open with the store. In our store we have a goal of 15 new VIP Redeemers a month. We already know how much more our Loyalty Redeemers spend annually so how much more do our VIP Redeemers spend annually? Once again the average customer spends $105 annually. A VIP Redeemer spends $578 annually, That is $473 dollars more annually than the average customer. Time for some more math So 15 new VIP Redeemers a month multiplied by 12 is 180 new VIP Redeemers. If VIP Redeemers spend $473 dollars more annually then we multiply that by our 180 new VIP Redeemers. That comes out to $85,140 more annually for just one store. Just out of curiosity lets see how much money that is across all of our stores. If there are 1,016 stores and we multiply that by $85,140 we get more than 86 million for all stores combined!!! It is no wonder they push us so hard for credit cards.