Chicos capitalizes on customer loyalty
August 25, 2008 by Mary Ellen
Most Baby Boomer women identify with (or at least know of) Chicos, a women’s clothing retailer known for colorful clothing and great patterns. I frequently cite Chicos as an example of customer loyalty. The ongoing passport program from Chicos offers five percent savings to customers once they exceed $500. While the Chicos card is important, the beauty of the discount comes from the computer because store clerks always volunteer to look you up. Additional coupons arrive in mailed catalogs and special surprises such as Birthday discounts add to offers.
As the Olympics come to an end, I’m amused to read more and more about “Mom of the Olympics” 57-year-old Debbie Phelps, Mother of eight gold medals winner, Michael Phelps.
“She completely articulates who we are as a brand,” says Chicos President
Michele Cloutier.
Chicos prominently displays “The Debbie Phelps collection” on its website and goes on to say:
“You can spot a Chicos woman anywhere and you’ve seen this one in the stands at
Bejing. Here’s what a certain champion swimmer’s Mom has packed for her son’s
unprecedented gold medal run…”The story made national news (and continues to play well). In Friday’s USA Today, Dan Mintz, founder of China-based ad agency DMG:
“Phelps is a phenomenon, and his mom, Debbie, is a pillar of strength.
(She’s) the hero behind the hero, and now the star behind the star. That’s a
powerful combination for brands to associate with.”
The Debbie Phelps story illustrates power of brand identification. Even though Chicos had no formal endorsement program in place, the chain has earned untold amounts from association with Phelps and his Mom. What’s more interesting to me is the bounce the stores get from women watching the games. Chicos President:
“Customer have been coming in and asking for what she’s wearing. They’re saying,
‘I want that jacket,’ and they can describe it perfectly.”
Comments such as this illustrate the power of social media in action. Debbie Phelps, visible because of her son, created a flurry beyond expectation as women noticed what she was wearing. Not all brands can capitalize on such moments. Chicos, positioned for opportunity, can only hope that a forthcoming official partnership boosts sagging sales.
Meanwhile, the ongoing visibility underscores the importance of customer loyalty. Debbie Phelps chose Chicos because it was already “her store.”
Question for entrepreneurs: how can you use endorsements to advantage in your business?
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