New World Department Stores VIP Customer Segmentation And Marketing Strategy Research

With the deepening of reform and opening-up, the rising of people’s living and income levels, customers’ visions becoming broader and the selection of merchandise is also increasing. Meanwhile the fierce market competition makes the entire department store industry into increasingly high proportion of undifferentiated production. Faced with increasing service demands from consumers, how to attract and retain customers becomes more and more critical. Though possessing a large number of VIP customers, New World Department Stores still confront urgent issues such as poor quality of VIP customers and low rate of living card.Firstly, this paper starts from customer segmentation and marketing strategy approach, combined with the actual situation of NWDS VIP customers, and following analyses the value of existing VIP customers, in order to find the most valuable and promising VIP customers. Then, the paper classifies VIP customers in terms of age, family situation, occupation as well as other personal information. Finally, after understanding the group of NWDS’s valuable VIP customers, we re-classify the VIP levels by focusing on the consumption capacity of VIP customers, and consequently the abolition of using free threshold VIP is applied to improve the quality of VIP customers. In addition we increase more centurion cards to attract more middle customers.After classifying VIP customers’ extrinsic information, it can be more effectively formulating the rules of VIP promotional activities and interests. For example, the proportion of female customers is substantially in the lead, which we can use this advantage to promote Shoes Day, beauty courses and other marketing activities for female VIP customers to improve their loyalty and satisfaction. Only truly understand your own customers can develop suitable marketing strategies for them, as well to retain customers.This paper not only has practical significance in terms of VIP customer marketing strategy of the New World Department Stores, but also has reference value for other retail and service industries.