Executive chief marketing officer Kriengsak Tantiphipop yesterday said Siam Paragon had invested about Bt95 million this quarter, of which Bt80 million was spent on setting up an Intelligent and Interactive Loyalty Programme, which will be used to build a database on M Platinum cardholders.
The remaining Bt15 million has been invested in promoting and launching the new M Platinum card, which is scheduled for next Wednesday.
M Platinum card is the exclusive member card Siam Paragon provides for selected high-purchasing-power customers.
The company launched the card four years ago and has maintained membership at 20,000. It has no plan to increase the number, as it wants to concentrate on taking care of the premium customer group, he said.
Kriengsak said spending from the 20,000 cardholders accounted for 10 per cent of overall spending at Siam Paragon. Average spending from this customer group is roughly Bt30,000 per month, seven times higher than for ordinary shoppers.
Siam Paragon expects M Platinum cardholders' spending to grow by 30 per cent next year.
Cardholders will have to bring their exclusive cards for reactivation on Wednesday in order to receive the expanded privileges Siam Paragon will offer.
He said the strategy behind the new M Platinum card was to keep Siam Paragon's loyal customers, which have high purchasing power.
Besides, it can allocate an advertising budget next year targeted more closely at those exclusive members, meaning the budget can be used more efficiently.
"Keeping the existing membership level requires a lower cost than to expand to new shoppers. But we will have customers with us for the long term," said Kriengsak.
Siam Paragon this year allocated an advertising budget of Bt600 million.
The amount is likely to increase next year under the new strategy.
Kriengsak said Siam Paragon had increased its budget for arranging privileges for its M Platinum cardholders, such as concert tickets for famous artistes and discounts for shopping in Siam Paragon department store, the shopping complex and Gourmet supermarket.
"The special feature of this new member card is to allow points to be exchanged for Thai Airways International mileage. Apart from credit cards, M Platinum is the first member card to offer such a privilege," he added.