WILD OATS PLAN LINKS LOYALTY CARD WITH E-MAIL

DEENA AMATO-McCOY

BOULDER, Colo. -- Wild Oats Markets here is leveraging the power of the Internet and its frequent-shopper database by electronically issuing both monthly newsletters and weekly targeted promotions and discounts to members of its customer-loyalty program.

In addition, the retailer is fostering more interactive customer relationships by enabling customers to access their frequent-shopper statistics and to choose which additional incentives they would like to receive.

Approximately 50,000 electronic newsletters were e-mailed to frequent shoppers Nov. 17. "This vehicle will allow us to communicate with our customers and develop synergistic relationships," said Jay Robinson, director of electronic marketing for Wild Oats.

The monthly newsletter, "Wild Oats Wild News," features material on health, exercise and fitness, seasonal specials information and even travel promotions that Wild Oats offers its frequent shoppers through a partnership with a local travel agency.

"Customers have the option to provide us with their e-mail address when they apply for our Wild Shopper frequent-shopper card, or while visiting our Web site," at www.wildoats.com, Robinson explained. "This is not unsolicited e-mail. We are sending the material to customers based on those that show interest and leave their e-mail address."

The recent bulk electronic mailing of Wild Oats' on-line newsletter followed a mailing in July, when the retailer sent 25,000 newsletters. However, "in July we just sent one big e-mail," Robinson explained. "There was not any real segmentation or database management involved."

In addition to electronic newsletters, Wild Oats is connecting with its shoppers via the Internet by segmenting its customer base in order to send weekly targeted discounts and promotions keyed to its shoppers' lifestyles.

"We look at our database of customer lifestyle, diet and product information, and determine which part of our e-mail customer base is best suited for specific promotions," he explained.

For example, the retailer sent a promotion Nov. 25 to encourage awareness of its "wellness centers," which combine elements such as massage therapy, Chinese medicine and chiropractic services.

"The centers are strategically located next to some of our stores," Robinson said. "To make people aware of their services, we pulled a segment of our database that revealed some potential shoppers that could be interested in the services the centers provide."

In hopes of spurring more interactive relationships with its consumers, Wild Oats is encouraging customers to tailor the offers they receive, by allowing them to manage their personal customer profiles.

"Customers can use the Web to view and change their personal address and profile," he explained. "For example, if a customer has moved, instead of filling out a physical application at the store and waiting four weeks for it to be processed, customers can update any information in this real-time, flexible environment."

This service allows consumers to access the same frequent-shopper database that Wild Oats uses. Cardholders can learn how much they spent last year, their favorite departments and most frequently purchased items.

"By doing so, they will be able to receive special e-mail news and electronic coupons specific to their interests," Robinson said.

Customers also have the opportunity to decline receiving future newsletters and e-mails simply by hitting their "Reply" icon, and typing "Remove" in the subject line of their e-mail screen, according to Robinson.

Wild Oats will continue to evolve the concept of customer segmentation by connecting on-line incentives directly to its front end. The retailer plans to send targeted promotions via e-mail, with the discounts deducted at the point-of-sale during the customer's next shopping trip. Wild Oats plans to launch this extension of its customized on-line promotions in March 1999.

"We are creating discounts based on frequent-shopper data that we collect at our front-end systems during checkout," said Robinson. "We plan to assign individually targeted e-mails, based on products that [customers] buy, via their frequent-shopper card numbers.

"Customers will not need to print out an electronic coupon, or a copy of the e-mail [message]," he added. "They just need to present their loyalty card during checkout. As long as they buy the product, the discount will be deducted at POS.

"It is all part of our goal to make this a paperless program," he added. I don't know if we will ever eliminate direct mail entirely, but my goal is to get our e-mail discounts tied to the front end and fully operational within six to 12 months."