CASE STUDY:  MEIJER SUPERCENTER TEXT MESSAGING PROGRAM

Meijer Supercenter, a Michigan-based privately held supercenter retailer, has introduced a new text messaging program that alerts customers of pending changes in the price of gasoline at Meijer service stations. 

Objective:
The goal was to improve customer service by providing loyal customers with inside information via their cell phones.  This summer, gas prices made frequent jumps.  Amidst increased instability, Meijer sent customers to get the most accurate information right away through their text messages.

Program:
Offered with the help of SmartReply, an Irvine, Calif.-based provider of voice and mobile marketing solutions, the program offers a simplistic solution to a very important and personal issue-gas pricing.  Customers can opt into the program by phone, through text messaging or online.  Once customers are registered, they are notified by text message two to four hours before any gas price increase of five cents per gallon or more.  Thus, customers involved in this program have advance warning that allows them to save money. 

The text messages that Meijer sends out are similar to this: “Meijer Gas Alert!  Meijer Gas prices will increase after 1:30 pm EST 5/24/06!  Stop by Meijer and fill up.  Info 1-800-313-2912.  Reply ‘END’ to opt out.”  Meijer has typically sent out one of these text messages per week, but there have been times when the company sent messages more frequently.

Results:
The 100 percent opt-in program was introduced in the Indianapolis marketplace in May 2006.  Since its inception, approximately 1,600 customers have registered.  Meanwhile only 138 customers, or less than one percent of those who signed up, have decided to drop out. 

“Customers see it as fun to beat pump price increases with insider information,” said Meijer Vice President of Customer Relationship Management Michael Ross.

In addition to customer praise of the program, the Attorney General of Indiana has commended Meijer for making use of an innovative method to alert customers about impending price increases.  Though the financial results from the program are currently being collected and reviewed by representatives of Meijer and SmartReply, monetary aims were not the priority in this program.  Overwhelming customer satisfaction has prompted the company to start plans for expanding the program to its entire market.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />