Optimization of the loyalty card program

01.

Background

In a highly competitive environment, shopper loyalty is a key to success. The evaluation of loyalty factors and their optimization leads to an even stronger loyalty of shoppers.

02.

Retail questions

  • Who are my most valuable shoppers?
  • How does my PPP perform compared to the competition?
  • Which tools can be used to further increase loyalty?
03.

Approach

Combining shopper segmentation with promotion analysis, storechecks and benchmarking

  • Perform shopper segmentation
  • Analyse the earn-burn-benefit dimension of the existing PPP
  • Linking PPP mechanisms with positioning of the retailer
  • Derive and test optimization potential (workshop with experts of the retailer)
04.

Result

 

  • Application of the shopper-centered promotion matrix increases frequency and average receipt and ensures the high share of best shoppers in the overall success (turnover, income)
  • Linking with positioning significantly increases shopper loyalty via soft benefits (e.g.: targeted customer events)
  • Promotional mechanisms that have no positive effect on frequency or average receipt can be cancelled without risk

Have we sparked your interest?

Contact now