Retail Member Card Status And Mechanism Study

As retail competition is becoming fiercely at the moment, more and more retailers have launched member card, expecting to expand territory, maintaining existing customers and recruitment new ones. But, in the real business, the results failed as what they thought, what they invest in the member card project does not yield corresponding revenue.There are several reasons responsible for the results:first of all, the retailers failed to identify their customers, the mechanisms they are trying to market are not liked by their members, which means the customers retailers have already recruited do not stick to the setting territory, Secondly, retailers, especially hypermarkets like CRF, RT-mart etc., have stretched almost every province of China, the member management has not successfully operated across different tiers of cities. In the meanwhile, the retailers are apt to associate member benefits more with price deduction, instead of adding value on service and emotional bonds.In this paper, customer segmentation is identified by consumers’ lifestyle and consumption attitude classification. Methods about emotional bonding, instead of badly price competition are also written.