How Shoppers Stop’s First Citizen Card Became a Revenue Powerhouse

In the competitive retail sector, customer loyalty programs have become a vital tool for driving revenue and ensuring long-term growth. Shoppers Stop, one of India’s leading retail chains, has successfully leveraged its First Citizen Card loyalty program to strengthen customer relationships and boost sales. Over the years, the contribution of First Citizen Card members to Shoppers Stop’s revenue has grown significantly, reflecting the program’s effectiveness in retaining customers and encouraging higher spending.

In May 2024, Shoppers Stop reached milestone of 10 million first citizen club members.

First Citizen Card is one of India’s oldest and most established loyalty programs. It offers members benefits such as reward points, exclusive discounts, early access to sales, and personalized shopping experiences. With over 11.5 million members as of Q3FY25, the program has become a critical component of Shoppers Stop’s customer engagement strategy.

Shoppers Stop took a gamble and introduced the First Citizen Card, a membership program that rewarded customers with points for every purchase. The idea was simple: keep customers coming back.

At first, it was a nice-to-have perk. Members got discounts, early access to sales, and the occasional birthday gift. But over time, something interesting happened. The data started to show that these members weren’t just occasional shoppers—they were the backbone of Shoppers Stop’s business.

The Data That Changed Everything

Shoppers Stop began digging deeper into its customer data, and the numbers were eye-opening. First Citizen Card members, who made up a relatively small portion of the total customer base, were spending 20-25% more per transaction than non-members. Even more striking, they accounted for over 70% of repeat purchases.

The contribution to revenue by First Citizen Members reached the 83% mark by Q3FY25.

That’s right—over 8 out of every 10 rupees Shoppers Stop earns comes from its loyal First Citizen Card holders, highlighting the immense impact of this innovative loyalty program on the company's financial performance.

In FY24, Shoppers Stop’s net sales were ₹3,213 crore, of which an impressive ₹2,661.54 crore came from First Citizen members. 

The Power of Repeat Customers

A critical factor driving the increased sales contribution is the high percentage of repeat purchases by First Citizen members. 

In Q4 FY22, repeat customers contributed 63% to the total sales generated by First Citizen members. By Q3 FY25, this figure had risen to 69%, showcasing the program’s success in fostering customer loyalty.

This trend demonstrates that as the membership base grows, the program continues to deepen its engagement with customers, encouraging them to return more frequently and spend more per visit.

In August 2024, Shoppers Stop partnered with Single.id to offer vINR rewards at Shoppers Stop, McDonald's, and Pizza Hut. Members can link cards to earn rewards, with each vINR worth ₹1 off future purchases, up to vINR 2,00,000 annually.

Why It Works: The Psychology of Loyalty

So, what makes the First Citizen Card so effective? Let’s break it down:

1. Exclusive Perks: Members get early access to sales, double reward points, and personalized discounts. These aren’t just nice-to-haves—they create a sense of exclusivity and make customers feel valued.
2. Emotional Connection: The program isn’t just about transactions; it’s about relationships. Members receive birthday gifts, anniversary offers, and personalized recommendations. It’s like having a personal shopper who knows your preferences.
3. Seamless Experience: Shoppers Stop has integrated the program across online and offline channels. Members can earn and redeem points whether they’re shopping in-store or online. This omnichannel approach has been a game-changer, especially in the post-pandemic world.
4. Premium Appeal: First Citizen Card members tend to be high-income individuals who prefer premium brands. By aligning its product offerings with this demographic, Shoppers Stop has been able to drive higher average transaction values.

The Road Ahead: What’s Next for the First Citizen Card?

Shoppers Stop isn’t resting on its laurels. The company is constantly looking for ways to enhance the program and keep it relevant in an increasingly competitive market. Here’s what’s on the horizon:

• Tiered Membership: Plans are underway to introduce tiered membership levels, offering even more exclusive benefits to top-tier members. Black Card members accounts for 14% of sales and grew by 17% in Q3FY25. We can expect more focus on these members to focus on premiumisation.
• Strategic Partnerships: Shoppers Stop is exploring partnerships with other brands to offer additional perks, such as travel discounts or dining offers.
• Hyper-Personalization: Using advanced data analytics, the company aims to deliver even more personalized shopping experiences, from tailored product recommendations to customized offers.

Final Thoughts

So, what’s the takeaway? Loyalty isn’t just about points and discounts—it’s about creating meaningful connections with your customers. Shoppers Stop has shown that when you get it right, the rewards can be transformative.

As the retail landscape continues to evolve, one thing is clear: the First Citizen Card isn’t just a loyalty program. It’s a story of how understanding your customers can turn them into your biggest advocates—and your most valuable asset.