SOUTH KOREA. Lotte Duty Free Shop is launching what it claims to be a pioneering customer programme by adding affiliate benefits – based on membership level – to strengthen VIP services.
The duty free retailer is extending a range of partnership agreements to offer better benefits to shoppers. Lotte Duty Free CEO Jang Sun-wook will formally launch the new scheme tomorrow.
The retailer has been negotiating with affiliates to widen the benefits of VIP customers since the beginning of the year.
The initiative is designed to ensure that Lotte retains a top ranking on customer satisfaction indexes compared to competitors.
Previously, VIP shoppers mostly received discounts based on their level of membership. However, from tomorrow, they will enjoy benefits connected to their leisure activities, for example, as part of an upgraded service.
“We have create a more meaningful membership package and we will continue to expand it through partner alliances,” said Lotte Duty Free Marketing Director Kim Bo-joon.
“A spokesperson for the company said: “First we gathered opinions of employees within the company and selected three industries related to leisure and lifestyle. As the top three categories in Lotte Duty Free stores are beauty, food, and travel, we are now offering customers the opportunity to enjoy benefits based on a category of their choice depending on their membership level.”
In April, Lotte Duty Free attracted much local attention by opening Star Lounge, the largest VIP customer lounge in Korea. The KRW10 billion (US$9.25 million) space is at the Myeong-dong flagship store in Seoul and accessible to the top 0.5% of VIP customers. The expansion reflects Lotte Duty Free’s commitment to a differentiated, upscale customer service.
Marketing activities push discounts to -80%
In the run-up to summer, Lotte is holding a ‘Be My Summer’ event for customers preparing for vacations and travelling from 1 June to 12 July. Over 40 top brands will be discounted at up to -80%. In addition, various promotions will be held, including a travel prizes draw and a lottery to tour Tokyo’s Japanese restaurants. Also, depending on the purchase price – varying at each store and by brand – gift items, such as summer essential items, pre-paid cards of up to KRW280,000 (US$260) and event tickets, will be offered to shoppers.
