LOTTE Mart NSG - the importance of customer loyalty improvement in sale performance

Abstract

Vietnam has been experiencing phenomenal rates of growth in its retailing industry and considered as fastest growing in ASIA One of ways to prevail in retail industry is salvaging loyalty program as effectively competitive strategy in order to attract, engage, grow, retain and nurture customers in increasing sales & profit performance. However, in LOTTE Mart Nam Sai Gon, after analyzing annual report and relevant others, the store is facing imperative problems that sales of customer loyalty went down 9% comparing 2018. Utilizing different literature, together with customer surveys, in-Dept employee’s interviews, the author identified main problems to impact shopping decision of membership. Findings indicated that potential problems listed as Products (assortment) does not adapt to membership’s needs, customer loyalty’s benefits is unattractive, lack of shopping experience, bad attitude of staffs. The author recognize main cause of problems is low competitiveness of member benefits. And designing solution that the company should acquire and serve core customers in various segments, concentrate on increase revenue of top sales membership group with privilege benefits.