A dunnhumby client wanted to improve its existing loyalty program. The program was linked to their proprietary credit program, but some customers were ignored — those that “won’t participate” and those that “can’t participate”. The program only rewarded those that are financially viable to the credit program, and potentially ignored those that could, in aggregate, deliver the greatest value back to the business. The company needed dunnhumby’s powerful insights to determine how to better realize the potential of a wider customer base to build loyalty.
Armed with this insight, the client redesigned its loyalty program to make tender neutral and reward frequency (rather than just spend). In addition, it took actions to “surprise and delight” customers with added incentives and ‘thank you’ bonuses.
Insight from dunnhumby garnered increased customers and sales: