Customer Pyramid
Platinum
Typically, the platinum segment consists of the most loyal customers. These customers aren’t overly concern with Charles & Keith product prices. They are more concern with the quality and value of the products (shoes, bags, accessories) they purchase. Platinum customers are the most loyal, therefore the heaviest users of Charles & Keith products. They are also most likely to be one of the few who do not mind trying new products that Charles & Keith produce.Charles & Keith keep their platinum customers by offering incentive programs.
Store specific credit cards:
UOB Credit Cards - 15% off regular prices items
• Discounts based on the amount of spendingUOB Credit Cards - 20% off with minimum purchase of $200 in a single receipt
Gold
The gold segment differs from the Platinum segment because most gold segment customers are more price sensitive. The gold segment customers do not purchase as much as platinum segment customers. Gold segment customers aren’t as loyal to one retailer and will go to competitors if the price is more attractive.
However, Charles & Keith have implemented a few options to turn gold segment customers into platinum segment customers. Charles & Keith attract the gold segment customers by having seasonal promotions and sales that is up to 70%.
Iron
The iron segment customers most likely are not loyal to any one in retail business. These customers are very price conscious and will shop many places to get the best price. These customers are not likely to spend much at any one store. Iron segment customers don’t deserve any special treatment because of the small amount of business they provide to a single retail business.
Firstly, Charles & Keith try to turn iron segment customer into a gold segment customer by having a price matching with the competitors. Competitors like Mitju, Mondo and U.R.S Inc who are mainly competitors of Charles & Keith have several price attraction techniques therefore Charles & Keith can price their product in a way that will ensure that customers patronize their shop. Secondly, Charles & Keith have a sale on specific merchandise.
• For example, Charles & Keith can have discounts on their bags to reach out to customers who love bags.
Thirdly, they can do more advertising. Charles & Keith did very little advertising except for their sale posters at the entrance of their shop. By having television commercials, large posters on buses/taxis or interesting video clips on their products will have customers to remember something about the brand or products.
Fourthly, Charles & Keith can have comparable merchandise at discount prices. For example, if Charles & Keith have discount on its high heels, customers will definitely compare it with a similar pattern of heels at Mitju, therefore by having comparable discount on all its high heels, they will definitely win iron segment customers over their competitors.
Lead
They are the segment of “problem” customers. These customers are the most likely to actually cost a business money by being customers. Lead segment customers demand a lot of attention for very little spending. In segment, abuse of return privileges is very common.
The lead segment has been a nuisance to retail business for years. As for Charles & Keith, they retailers have implemented different programs to dissuade the lead segment customers.
Firstly, Charles & Keith implement tighter return policies. Their products are only exchangeable for 7 days only with receipt. Also, the products need to be in good condition and they do not allow their sales items to be exchangeable.
Secondly, Charles & Keith associates who have specifically been trained to deal with these “problem” customers. Charles & Keith staffs are well-trained to not accept any exchange requests to products which do not fit the exchange requirements.
