Holt Renfrew has created an effective customer relations strategy which makes use of the concept of an ultimate shopping experience. This strategy has led to the creation of customer loyalty in the Canadian market (Anderson and Kerr 1).
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In the new Vancouver store, there are several features that have been included so as to ensure that customers are retained. The business has invested in facilities and services that are aimed at ensuring that customers get a reason to want to visit the stores again and again. Holt Renfrew uses architectural design to provide customers with the experience that they seek when buying.
Through unique features such as guilted glass, pendulum lights and a glass façade, the business appeals to mid market consumers thereby giving them a reason to always shop at Holt Renfrew. The introduction of entry level products enables customers to access big brands and this has enabled Holt Renfrew to become the only successful departmental store in Canada.
The personal shopping program promoted at Holt Renfrew is effective because it yields customer loyalty. This program was started fifteen years ago and has bore good fruit ever since. Holt Renfrew succeeded in reaching its highest sales revenues in 2006 when every store exceeded their sales target.
This was due to the successful appeal created by the personal shopping program that attended to the intrinsic shopping needs of customers. The departmental store seeks to satisfy different categories of needs of customers and not simply the clothing needs. Through the inclusion of theatres and spas in the department store, customers are able to get a conclusive shopping experience because the package eliminates the need of seeking services of other retail stores.
The customer segment that should be targeted by Holt Renfrew includes the youths who are under 35 years of age. This age group is also known as Generation Y in modern literature. This is the best target group since this segment of the population is the one that goes after brand names and not just products.
These people are highly influenced by what is popular in the market such as the brands worn by celebrities or brands heavily marketed in the social media. Since Holt Renfrew offers entry level brands in its stores, the age group that would be favored by this initiative is the youths since majority of them do not have stable sources of income. Entry level brands thus make big brands more accessible since they pull customers towards the stores.
Holt Renfrew has not overestimated the luxury market in Canada since the department store has continued to grow and prosper over the years. The investments that the business makes towards making the customers happy pay off in terms of creating customer loyalty and attraction of new customers. New customers are attracted by the personal shopping program since they visit Holt Renfrew to get diversified products and services leave alone clothing only.
A practical example is how the Baby Boomers are more willing to spend on spa treatments as compared to buying popular brands. This customer segment is still captured since the department store has all these services under one roof. In order to attract more customers, Holt Renfrew can venture into additional markets overseas in upcoming economies such as China, the Middle East, the Tiger Nations and Europe.
This will give the business an international presence thus make Canadian classy customers to appreciate the company brand in a prestigious way (Raab 12). CRM and ERP software can also be used to manage knowledge so that the customers can be understood well for better future decision making (Jha 63).
Anderson Kristin L and Kerr Carol J. Customer relationship management. New York: McGraw-Hill, 2001
Jha Lakshman. Customer relationship management: a strategic approach. New Delhi: Global India Publications, 2008
Raab Gerhard et al. Customer relationship management: a global perspective. Aldershop: Gower, 2008