CRM

Victoria's Secret currently does 10 things to Optimize CRM.  The first thing they do is trend the long term control group.  This allows them to observe natural baseline shipping patterns.  Those patterns help inform their contact strategy for a season.  When there is lower baseline shopping, there is more CRM.  Next, Victoria's Secret is increasing the size of their Database.  They are adding cell phone matching capabilities to identify more customers at POS.  They are also investigating media deals that involve sharing of names.  Next, they are Considering Alternatives Channels of Delivery.  They want to test inserting their direct mail piece on top of newspaper deliveries, adding inserts in existing Victoria's Secret catalogs, use concierges to deliver their CRM pieces in high tourist areas and have bulk drops.  They are also increasing their number of email contacts and are using bounce backs since they are a less expensive delivery mechanism that targets high quantities of existing customers, including those not captured on their database. Fourth, they are focusing on current customers with minimal spending on lapsed and prospecting.  They want to retain their high quality customers by focusing on their Angel Credit Card customers, while adding new benefits and double and triple point events.  Fifth, they are rewarding loyalty.  They sent VS branded gifts ($40 value) to their best customers in the past holiday season.  Next, they are researching the customer.  They are undertaking a 3-month study to help better understand what is in their customers' and non-customers' lingerie drawers and what influences her to purchase certain products. Seventh, they are over-hauling the customer contact strategy.  They want to re-build their models, monitor customer cycle time and add more contacts per customer.  Eighth, they want to get more aggressive with offers.  They want to add more beauty samples to some of their gift with purchases and their gift with purchase will be larger.  They also want to feature value messaging on the creative side.  They are calling out special in-store deals that are featured at a great price in addition to their "champion offers."  Lastly, they are looking for creative sources of funding.  They are going to look at partnerships, list exchanges and use excess product for gifts with purchase events.