Ian Bennett and I were invited to help assist a major Australian retailer. To assess and evolve its Customer Loyalty program, and approach to loyalty marketing.
Objective
The reason for the project was to help the marketing team answer the question:
How do we prove Customer Loyalty value to the business?
Approach
We commenced a four stage process of discovery, prioritisation, definition and build.
The first two HELICOPTER stages unearthing the current state approach to data capture and loyalty marketing. Identifying the importance and value of all the data variables. And involving a deep dive analysis of sales data (at a gross margin level), customer cohorts, channel choice combinations, product category purchase behaviour, redemption rates, household structure and location.
Solution
Whilst the specific results are confidential, a value segmentation quickly revealed a clear story.
We discovered a super high value segment. With 2.5x the average customer frequency. And 3x the average customer value (CV).
And significant opportunity to think differently about loyalty programs as a CV driver.
It’s all about growing the LOVE.
The question now is how best to define a new approach to loyalty marketing. Whilst embedding a ROI calculation based on incremental gross margin shifts at an individual customer level. This is currently being worked on along with test and learn trial activity to specific next best potential cohorts.
As with any project, it’s wonderful when the teams click. And we’re always grateful to work with good people who are open to change and share their kind words:
“Anton and Ian led a very considered approach to our customer loyalty review. Their data-led insights helped to prioritise areas of focus, and clearly articulated the value this would create for the business. Highly recommend.” Chief Marketing & Digital Officer
If you’d like to find out more about how HELICOPTER can assist you, then please touch base with us here.
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