Haband, a multichannel clothing retailer owned by Orchard Brands, has signed a long-term contract with Alliance Data Systems Corp.
Alliance will provide Haband with its first private-label credit card and first loyalty rewards program, slated to launch this summer. Haband, which had never offered credit to customers, serves more than 5 million online and catalog shoppers, many of whom are over the age of 50 and on a fixed income.
“We thought it [working with Alliance] would increase response rates and increase the average customer order and, at a time when it’s pretty tough to get credit, it would be nice to say to our customers, ‘send no money,’” said Jim McClane, CEO of Haband.
“When you’re dealing with a mature market on a fixed income, it’s nice if they can order when the mailer gets there and not have to wait for their monthly check,” he added. “That’s why this is particularly important for our customer base.”
Under the agreement, Alliance will be responsible for authorizing the credit cards, some marketing services, generating statements, providing customer service and other functions. The new loyalty program, also Alliance’s responsibility, will be an incentive and rewards system for cardholders.
Orchard Brands, Haband’s parent company, and Alliance signed a long-term agreement for private label credit card services in 2008. That contract affected many of the company’s specialty catalog brands, such as Bedford Fair, Intimate Appeal and Monterey Bay Clothing Company. However, this is Haband’s first contract with Alliance.