Yahoo Finance M&S Launching 'Members' Club' Called Sparks
Marks & Spencer (Other OTC: MAKSF - news) is launching a "members' club" in a move aimed at connecting with its customers amid tough competition online and on the high street.
The retailer, which is struggling to grow sales in its homewares and fashion business, said it used customer feedback from a trial in Wales and western England to design Sparks.
It (Other OTC: ITGL - news) said benefits to be gained through the mobile app would include tailor-made discounts and priority access to new ranges.
Members would be able to earn 'Sparks' through their purchases and by completing product reviews, M&S said.
Patrick Bousquet-Chavanne, the company's executive director, said: "It’s a two way relationship; members tell us what they enjoy, select their own tailored offers and are rewarded for sharing their views."
He added: "Now (NYSE: DNOW - news) is the right time for M&S; thanks to our infrastructure investment and the breadth and depth of our product offer, we can deliver a club that sees us collaborate with our members to build a better M&S together."
The move follows some progress in the company's turnaround efforts but it has often been accused of failing to listen to its customer base.
In May, it announced its first increase in annual profits since Marc Bolland took over as chief executive four years ago.
While its food offering has gone from strength to strength, M&S has struggled to grow general merchandise sales - particularly in female fashion.
Sophie McCarthy, retail analyst at research firm Conlumino, told Sky News the scheme risked being too complicated.
She (Munich: SOQ.MU - news) said: "'The launch of Sparks at Marks & Spencer has the potential ...to win back customers who deserted it over the last few years, as well as attract new ones, due to its uniqueness in the market.
"Considerable investment has been made by M&S in developing a digital infrastructure that produces exclusive offers and deals for each customer that are unlocked based on points earned through engagement - but is this what the consumer wants?
"Much has been made in the wider market over the last 12 months about simplifying pricing, reducing the amount of promotions run and generally offering transparent pricing structures, yet M&S' Sparks scheme bucks this trend."
She added: "Sparks will provide M&S with a wealth of data on its customers and could lead to insight into why the foods division of its business has been so successful, whilst its clothing offered has struggled considerably."
