Virgin soars on circulars, store refits

February 1st, 2007

A shift in merchandise mix and an aggressive marketing program brought Virgin Megastores its best holiday season in five years.

...Virgin hopes to build on this momentum with a recently launched VIP customer loyalty program. According to Ms. McLaughlin, it is the first of its kind in North America, using a patented thermo-graphic rewritable card. The card instantly updates loyalty points and marketing messages with each use and can be rewritten 500 times.

Customers in the program earn points for every dollar spent and get chances to win instant giveaways from Virgin Megastores and VIP program partners. They also earn privileges such as meeting celebrities at a Virgin Megastore and backstage passes. In addition, they will receive e-mail and direct mail communications regularly.

The program replaces an existing frequency-card program available in select stores. It has already been available in Europe, Asia and Australia, where there are almost 30 million active users.

VIP partners will be able to advertise on the card on a monthly basis. The program also includes reporting tools with the ability to segment and offer targeted marketing and e-mail communications.

Virgin expects the program will “help build our customer loyalty and word of mouth to drive business,” Ms. McLaughlin said.

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