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Industry News Studio Moderna: So much more than loyalty.

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Today Studio Moderna is more than proud to have 1.5 million loyal members in their Club 5* loyalty programme.

by Burcu Ozdemir Begić and Kaja Pohar

The story of Club5* began over a decade ago, when the first membership was sold in Slovenia in 2006. Later, in 2010, Club5* was launched internationally in all Studio Moderna markets and today Studio Moderna is more than proud to have 1.5 million loyal members, which has to be one of the most important milestones in it's history.

Club5* is a multi-brand, payable loyalty programme that provides customised benefits to Studio Moderna's most loyal customers. The membership fee enables an immediate personalised shopping experience, rather than forcing the customers to accumulate rewards over time. Moreover, it gains more committed and more engaged members that generate up to 70% of the company revenue. According to our customer life cycle analysis, newly acquired Club5* customers are 2.5 times more likely to repurchase and generate 3 times higher revenue compared to non-members in the 12 months after acquisition.

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Burcu Ozdemir Begić, Head of Customer Development Management, Studio Moderna

Burcu Ozdemir Begić has a Law degree from Istanbul Marmara University (2003) and an MBA from the City University of New York Baruch College (2005). She joined Studio Moderna in Istanbul in 2006 as Customer Care Supervisor, after 5 months becoming Call Centre Manager. In 2008, she helped the reorganisation of the Call Centre in Bucharest and then joined the International Customer Support team, responsible for 7 CEE markets. In 2014, she became Head of Customer Development Management in Ljubljana and is currently responsible for most activities for creating rebuyers, the Club 5* loyalty programme content, product development and customer service organisations for all 21 markets.

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Kaja Pohar, Specialist for Development of Marketing Content at Studio Moderna

Kaja Pohar has a degree in International Masters in Business Administration from the University of Ljubljana, Slovenia (2017). During her studies, she spent several semesters abroad in Bilkent University in Turkey and Kyungpook National University in South Korea. She joined Studio Moderna in 2016 as Business Analytics Assistant and recently changed position to Specialist for Development of Marketing Content focussing on customer development activities as well as customer service, Club 5* loyalty programme content and telemarketing focused product development.

At the beginning of January 2018, we launched an international multi-channel campaign 'Reach for the Stars', aimed at promoting Club5* to our customers; both Club5* members and non-members. The campaign was promoted via TV, internet, printed catalogues, retail stores and call centers in 19 EU countries, Kazakhstan and Russia. Prior to the campaign, during the buzz period, international competition was set up by the headquarters motivating the employees to try their best to achieve the shared goal of 1.5 million Club5* members. Besides the international competition, highly engaged countries motivated their sales personnel with various local activities. One of the most successful is the so-called Club5* Record breaking day, which hit record values over and over again.

The reason behind the ever-increasing number of Club5* members, lies in well-practised database marketing and innovative customer development activities. Since the start of the Club5* concept in 2006, database segmentation has started to evolve. From selling one offer to all customers, to RFM (recency/frequency/monetary) segmentation, and finally to cluster segmentation supported by an omni-channel strategy in which offers are custom made for each customer segment separately.

Optimised customer data collection and processing enables creation of various segments of customers that share the same or similar buying behaviour. Special offers are created based on their purchasing data and preferences. Our most loyal customers are invited to take part in special events such as Club5* days in stores or Customer Advisory Boards, where they are encouraged to share their experience, preferences, needs and wishes. Moreover, Club5* members are entitled to special pricing for most of the products and are also offered exclusive products.

The 1.5 million Club5* members achievement is also in line with the renewed Club5* image. Besides revived visuals, customers are now able to choose between two types of membership: Premium and Exclusive. By joining Club5*, customers are entitled to various immediate discounts, exclusive products, prices and deals, free postage, longer money back guarantee, and last but not least a valuable welcome gift. The most loyal customers may benefit even more by choosing the Exclusive two year membership which offers more and higher discounts, additional external partners’ benefits as well as additional gifts and a free postage coupon.

Personalisation of offers and customer development activities will be key drivers for Club5* in the future. Gaining a deeper understanding of customer preferences, habits and needs is key to the creation of a unique multi-channel shopping experience. The vision of Club5* follows the slogan: “So Much more than Loyalty”, and this drives the development of the Club5* concept into the direction that will give every single Club5* member the special feeling of being privileged.