Retail

Maximize your benefits from loyalty program for your customers.

Retailers use loyalty schemes more and more often while fighting for a bigger share in consumers' day-to-day expenditures. Tesco Club Card is one of the most well known success stories of a retention strategy that have helped the company reach its undeniable market leadership.

It is not as well known however, that behind the scenes there was somebody who helped Tesco with the implementation of a long term, customer focused retention strategy. This 'somebody' was Dun'n'Humby - THE company if you are looking for someone experienced in turning your data into a marketing tool.

What is not surprising, it is the multi-national chains that are leading the stake in Poland with regard to loyalty program implementation. Even there however one has still a lot to do in order to move from a simple '5% off for everybody' into a customer centric communication, focused on benefits relevant to an individual person or segment.

At the bottom line, every loyalty program looks similar: a person receives a member card, which - when presented at cash register - entitles to discounts and often is loaded with program points. On the database side a complete information about customer purchase is written.

Depending on the analytical and database infrastructure, the above information can (or cannot) serve as a powerful communication tool. The same data supply simple customer value segments as well as complex messaging strategies.

Consider a letter to Anna (age 28), who joined the program a year earlier.

A simple sounding message requires significant preparations. Below we have listed those areas where we know we can help.

Basket analysis
Which products are being bought together? Which categories has the consumer been buying? What is the share of promotional purchases? How to segment the products (SKUs) so they told a story about customer's life-style?

Profile analysis
Which questions to put on the registration form? How to motivate the clients to fill them? How to tie the profile data with transactional information?

Segmentation
How to split your customers along the key dimensions: loyalty, value, profile and shopping behavior? How to do it in such a way, so the results bring insight and knowledge but first of all provide an actionable set of segments?

Communication scenarios
How to map the communication scenarios with segments? Is there a space for automatic profiled offer generation? How to measure and monitor communication effectiveness?