Case Study of the Week: Rewarding Customers While Increasing Sales

November 7, 2022

Retail Merchandising

You are to assume the role of promotional director for Premiere Purchase, a consumer electronics retailer. The senior vice president has asked you to plan a special event exclusively for top-tier Premiere Points members that will result in an increase in sales.

Premiere Purchase sells a wide variety of consumer electronics and household appliances. The company is also licensed to sell popular telecommunications brands and has an in-house team of tech support that can assist customers with trouble shooting and repairs. There are over 1,000 locations in North America.

The holiday season is the busiest and most profitable for Premiere Purchase, with Black Friday being the retailer’s most profitable day of the year. The retailer opens its doors to early bird shoppers at midnight to offer the best deals, oftentimes with lines around the store.

Three years ago, Premiere Purchase launched its Premiere Points program. The free membership allows customers to earn points for every dollar spent at Premiere Points store locations or on the company website. Once a member has accrued a certain number of points, they can redeem these points for free shipping, discounts and other incentives. Premiere Purchase has thousands of members, yet only a fraction of members consistently earns points.

The senior vice president wants to encourage customer spending by offering an exclusive event for Premiere Points members that have earned over 2,500 points. The senior vice president wants you to plan a special event that each Premiere Purchase location would hold that would draw significant interest and motivate members to spend more to reach the 2,500 points needed to attend.

The senior vice president wants the exclusive event to be something that can be repeated annually to encourage sales and establish relationships with loyal customers.

Questions?

Randi Bibiano
Competitive Events Specialist
randi@deca.org

As DECA’s competitive events specialist, Randi primarily authors role-play scenarios for the collegiate and high school division’s competitive events programs. She also serves as DECA’s liaison for the Virtual Business Challenge and Stock Market Game. Randi assists with the recruitment of judges for both the high school and collegiate International Career Development Conferences. Randi has worked for DECA since 1998.

Discussion Questions

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Classroom Connection

Career CLuster:

Marketing

Instructional Area(s):

Selling

Performance Indicators:

Establish relationship with customer/client
Explain the role of customer service as a component of selling relationships
Discuss motivational theories that impact buying behavior
Plan special events