Of Customer Discounts and Loyalty

I am a Shoppers Stop loyalist. I have been one, for 8 years now. I find their selection suited to my needs, pricing not kick-ass but better (compared to say Lifestyle). The Store is also pretty close to my house (In Chetpet, Chennai and Sohna Road, Gurgaon).

But the best thing I like about them is their Loyalty Program. They have a lot of tie ups with Banks/other partners. More than half my purchase in their store is through Loyalty Reward points from HDFC bank.

Recently, made my Diwali purchase from their Store in Gurgaon. Saw this interesting offer being promoted throughout the store – “Get Rs. 1500 discount if you buy for Rs. 5000”.

We already had a cart value of Rs. 4800 and thought we could purchase a pair of socks or hankies to get the cart value to tip above Rs. 5000 to avail the discount.

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Then came the surprise, at the counter, “after” our billing was done.
The 1500 discount was split into 4 parts.
2 coupons of “Flat 500 off on a minimum purchase of Rs. 2500”. (This was applicable only on select brands).
1 Coupon of Rs. 200 off, which was redeemable only on their App, at a minimum purchase of Rs. 1000.
Rs. 300 was credited into my Shoppers Stop First Citizen account.

To summarize, I had to purchase for an additional Rs. 6000 minimum (apart from the 5000 I had already bought) to get the benefit of Rs. 1500 which they had so aggressively promoted.

Rs. 150o off on Rs. 11000 (which was their offer) is a very small % of the margins these Apparel retail guys earn (which can go up to 50% or even more).
Whereas some customers like me can drop off, considering it’s too steep a climb to avail the discount, few might end up purchasing for that Rs. 6000 more to avail the discount.

No wonder Shoppers Stop Loyalty program is considered one of the best in the World.

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3 responses to “Of Customer Discounts and Loyalty

  1. But in a way, isn’t the call-out misleading for the customer?

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