Strengthening Affiliate Benefits in Hotels, Rental Cars, and Cinemas
Providing Customized Membership Services Tailored to Customer Lifestyles
Lotte Homeshopping announced on the 2nd that it has expanded discount benefits for affiliates such as hotels, rental cars, and cinemas through the revamp of its paid membership 'L Club' on the 1st. The strategy is to secure loyal customers with differentiated services based on various benefits amid a slump in consumer sentiment due to high inflation.
A model is introducing the revamped details of Lotte Homeshopping's paid membership 'L Club' [Photo by Lotte Homeshopping].
Since launching the paid membership L Club (700,000 members) for the first time in the industry in 2018, Lotte Homeshopping has been operating segmented paid memberships by age group and consumption patterns, such as Heritage L Club (operated annually for 150 people) for middle-aged customers in their 50s and 60s, and Y Club (10,000 members) exclusively for the MZ generation (Millennials + Generation Z). The annual purchase amount of L Club customers was found to be more than six times higher than that of regular customers. Accordingly, Lotte Homeshopping plans to focus on securing loyal customers and attracting new customers by expanding membership benefits.
The recent membership revamp is characterized by adding offline affiliate benefits to the previously online shopping-centered service. New benefits include up to 20% discounts at Lotte Hotel, up to 70% discounts at Lotte Rental, and monthly 3,000 KRW discount coupons for Lotte Cinema. When all services are converted into monetary value, members receive additional annual benefits worth up to more than 1 million KRW, which exceeds the membership fee (30,000 KRW per year). Existing benefits such as monthly discount coupons of up to 12%, free shipping, and 10 times accumulation of L Points are also maintained. Going forward, the company plans to continuously introduce lifestyle-customized benefits by expanding affiliate linkages and further segmenting shopping behavior analysis by customer.
Meanwhile, on the 30th of last month, Lotte Homeshopping completely revamped its mobile application focusing on customer convenience. With strengthened purposeful purchasing tendencies, the menu was reorganized to enhance customer convenience, including 'Today,' which recommends products that are good to buy today; 'Ranking,' which gathers only popular brands; and 'PlayOn,' which provides video content such as short-form videos and TV home shopping broadcast highlights. The brand identity was also strengthened with a unified, highly readable design inspired by the Lotte Homeshopping 'L' logo.
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