Understanding Exchange Strategic Priorities: Increase MILITARY STAR Portfolio
The Exchange Credit Program (ECP) has ramped up initiatives for 2017 to meet the strategic priority, “increase MILITARY STAR portfolio.”
First, the ECP is working across directorates to prepare for the new Veterans online shopping benefit that starts Veterans Day, Nov. 11. On that day, the Exchange will welcome home potentially 13 million honorably discharged Veterans who can start shopping with us online.
ECP’s role in the Veterans online shopping benefit is twofold. Not only will the ECP’s Exchange Customer Contact Center help verify Veterans but also help them with everything from setting up online profiles to assisting with e-commerce orders. Veterans can apply for MILITARY STAR accounts, enjoy free shipping and participate in the loyalty program.
Today, 70 percent of online sales are made with MILITARY STAR cards. Since MILITARY STAR is processed in-house card sales save the Exchange more than $19 million annually in merchant fees annually.
Second, in October, the Defense Commissary Agency (DeCA) will begin accepting MILITARY STAR, with a full rollout by year’s end.
The MILITARY STAR and DeCA partnership represents an estimated $113 million annual value between the agencies, customers and Quality-of-Life programs. Military consumers in focus groups told ECP managers that they are eager to use MILITARY STAR cards at commissaries and Quality-of-Life facilities.
The resulting increase in earnings would translate into as much as $22 million in additional Quality-of Life dividends. During the past 10 years, MILITARY STAR earnings have provided $727 million to these programs, such as child care programs and recreation facilities.
During the past 10 years, MILITARY STAR earnings have provided $727 million to Quality-of-Life programs, such as child care programs and recreation facilities.
Third, the Quality-of-Life programs, the Exchange launched a pilot project at Fort Hood, Texas, this past November in which the Phantom Warrior Lanes bowling alley began taking MILITARY STAR cards. The project expanded in April to child and youth services, then leisure and travel services, at the installation.
Fourth, concessions will remain a big focus for MILITARY STAR throughout this year. In FY 2016, MILITARY STAR penetration rate for concessions was 5.5 percent, compared to 26.6 percent in the main stores. ECP and the Services, Food and Fuel Directorate are exploring opportunities to make accepting and promoting MILITARY STAR cards easier for vendors.
That includes capitalizing on an Information Technology Directorate and ECP project that adds enhancements, such as allowing customers to put tips for barbers and other service providers and reoccurring payments for telecom vendors on their MILITARY STAR cards.
The MILITARY STAR initiatives will also maximize profitability in the Exchange’s main stores, Expresses, restaurants concessions, other facilities and on ShopMyExchange.com. Exchange facilities will continue with contests for cashiers and sales associates to see who can get the most approved MILITARY STAR applications, increase penetration rate and boost usage.
