Larson6

More than just a job
By Alison Larson

As we approach another holiday season, it may become easy for us to get frustrated and stressed out, tired of dealing with the crowds and tired of working long hours. Ultimately, this frustration could result in our losing sight of some of the most important parts of our jobs. As sales associates of Old Navy, our number one priority is to provide customer service to everyone who walks into our stores. Product knowledge and helpful, friendly attitudes are a must. But how can we go beyond these basics to extend our service skills and help the company at the same time? The answer is the Old Navy Account.

What is the Old Navy Account? It is the company’s private label credit card that we have offered to our customers since October 2000. To date, the company has opened more than 3.5 million accounts, with 1.2 million in 2001 alone. This year, the company’s goal is to open 1.5 million new accounts.

We all know how the Old Navy Accounts benefit our customers, because we sell these benefits everyday. How many times a day do you say the following: “Would you like to save ten percent on your purchase today and open an Old Navy account?” Do you then go on to explain the other benefits, such as $5 coupons for every $100 charged, 10 percent off the first purchase from oldnavy.com, other special discounts at certain times of the year? Our managers encourage us everyday, in nearly every sales rally, to sell the accounts to every customer.

But why do we put such a strong emphasis on the Old Navy Accounts? How does Old Navy benefit from the company credit card?

First of all, having a private label credit card helps the company save money. For every transaction involving a major label credit card, Old Navy pays a processing fee. Each credit card company charges a percentage of each transaction, beginning usually around two percent. For every transaction involving an Old Navy Account, the company pays nothing.
More importantly, however, is that the Old Navy Account has helped to establish customer loyalty. Customers who hold an account with Old Navy are likely to return to an Old Navy store more often and spend more money than those who do not have an account. Account holders also receive special mailers and coupons, advertising current and up-coming promotions and encouraging customers to visit his or her nearest Old Navy and use their accounts.

These mailers and coupons not only establish repeat customers and create customer loyalty, but also help boost our sales. Statistics from 2001 indicate that the average first purchase for account holders is 85 percent higher than the average credit card purchase, due to the 10 percent off enrollment offer. Also, the average number of purchases each year for account holders in 2001 was 4.5, as opposed to 2.4 for non-account holders.

So what do all of these benefits have to do with us, the associates? Why should we care if Old Navy account holders spend more on average than non-account holders? The reasons are these: For every customer who opens an account with Old Navy, the company has the opportunity to increase sales and make more money. More money means more payroll hours available, which means higher paychecks, something we can all use, especially during the holiday season.

In the two years since Old Navy launched the company credit card, there has not been a very significant amount of out-of-store advertising for the Old Navy Account. Most of the marketing for the account is targeted for in-store use. Therefore, it is up to us, the sales associates, to promote the accounts to our customers. And the easiest way to do this is to be consistent. Look at every customer as a potential account holder. Whether the customer is spending $20 or $200, the opportunity is there, the opportunity to not only better serve your customers, but also to help strengthen the company.

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