Retailers bet on private label card to strengthen regional activities

In order to accelerate your sales, retailers of regional activities in the interior of Sao Paulo State is betting on private label cards. The measure combines loyalty strategy and offer easier credit to customers. "Today, we have a strong presence in three poles in São Paulo, in the region of Sorocaba, Marília and Bauru. Even if half of the transactions will still be made with cash, payment via card has grown enough. Is a banking tool within this process of social mobility, "said the President of the Credz card administrator, José Renato Simões. According to the Executive this movement of adherence to the private label in trade is key to the consumer loyalty. "Currently, all establishments must offer access to credit tools and more payment options," said the Executive, noting that sectors such as the building material retail is one of the most uses of loyalty within the State Paulista. Sen complements the company's current revenue is R $150 million monthly. About 90% of the region corresponds by client portfolio of cards manager – whose activities started in 2012 and today sum 48 small and mid-sized retailers spread over 2000 outlets. Sharing perspective similar to Sen, the founder of consulting firm ba} Stockler, Luis Henrique Stockler, considers the State of São Paulo as a breeding ground for this category of membership card. "With the private label card retailer has on all data concerning financial business transactions. In addition, is aware of the customers ' consumption habit. In possession of these data, the entrepreneur has a greater possibility of acting in certain regions and targeted way, "argued Stockler. The consultant also remember different profile of consumers of the interior, in the sense that there is a more informal relationship and next between the merchant and the customer. "In general, people inside has a very strong connection with brands and local businesses. The client is recognized by name and composes just another worksheet with numbers, "said Stockler, mentioning the fact that this process of regional performance raises the possibility of customer loyalty." The knowledge of these data, it is sometimes more valuable than his own financial gain. We can see that in areas such as pharmacy, clothing and building materials ", added the expert. In practice one of the retail chains that saw in the private label the possibility of leveraging sales was the Barcelona Home and building, with operations in the State of São Paulo. "We have partnered with Credz three years ago. Since then, our trade has been impacted positively: 60% of customers using our card come back to buy in our stores, "argued the network owner, Andreia Melo. According to the Executive, there are many customers coming from São Paulo to buy business units in Kfar Saba and St. Roch. She remembers that this audience uses the local trade just for reforms in farms and ranches in the region. "From the moment that the customer has the card, just using for all stages of the work. He wants to find everything easily in one place, "said Andreia. She says that in the last three years, this loyalty process culminated in a high of 20% in sales volume. In view of the public belonging to class C, the Executive said that most business purchases are carried out via installments, with average ticket R $1800; While in transactions to view this value is r $300. Another example of a retail network that makes use of the regional activities in line with the private label card is the TBFG, a holding company which owns the brands of clothes Hot Point, Planet Girls, Top Brands and Polo Wear. "According to our audience be B and C, extending credit is a big difference and help increase our revenues. Today, the representation in some of our own card operations is of 12% in gross sales ", celebrated the holding owner, Joshua Varella. According to him, the intention is that the percentage of participation is of 15% on all brands of business in a horizon of two years. "Easing credit for consumers, there is a virtuous circle in which our average ticket, R $150, enough to double," said Varella, mentioning that the operation has been strengthened in cities of Jundiaí, Americana and Presidente Prudente.