Gliebers Dresses: Thank Goodness For Loyalty

From: Lois Gladstone [mailto:lois.gladstone@gliebersdresses.com]

Sent: Wednesday, August 25, 2010 8:03 PM

To: Kevin Hillstrom

Subject: Customer Loyalty

Hi Kevin:

You've probably heard by now that Brandon Templeton is out at CEO at Gliebers Dresses. He went "all-in" as he says with a mobile app strategy that failed miserably from a sales standpoint.

What I am really proud of, however, is the loyalty program that I shepherded last year. You probably remember the program, we offered free shipping for a full year once a customer purchased four items. Well, how the heck do you think we held on to fifty percent of our sales without mailing a single catalog in July? It HAS to be the loyalty program, don't you think?

So here's what I am wondering. How can we prove that the loyalty program was responsible for holding on to fifty percent of our business in July? Roger's team looked at the percentage of orders that had free shipping in July, it was close to something like 40% of the orders. I should get credit for every one of those orders, right? I mean, those orders should be attributed to my loyalty program.

And then we have the remaining 60% of orders, a decent percentage of those had customers with three items and four items, so those orders should be attributed to my loyalty program as well, because my program is pushing customers closer and closer to free shipping on an annual basis.

Anyway, it would be great if you could jot down a few notes about how to demonstrate that our loyalty program saved our bacon in July.

I don't know if you know this or not ... Roger would like to be the next CEO of Gliebers Dresses. I think he'd make a good leader, he has solid knowledge of the business and he is really up to date with all of the latest marketing strategies, I doubt anybody reads research reports as thoroughly as he reads them. It would be amazing to see him put his theories into practice.

Thanks in advance for your help, I don't think we're looking to pay you anything, we just want for you to do a quick analysis of our loyalty program, maybe a day or two of your time, that's all.

Thanks,

Lois Gladstone
Chief Financial Officer
Gliebers Dresses
A Division of Gleason Investments