A European retailer wasn’t sure if its loyalty program was as effective as it could be. As it was, the program allowed customers to earn points to convert into gifts or vouchers to spend in the store. Additionally, customers could earn points from a variety of partners connected to the program. The retailer wanted to know what program changes would really delight and excite customers, to build more loyalty and deliver measurable results — so it came to dunnhumby.
Upon review, some useful customer insight was gained into how participants were interacting with the loyalty program:
Turning those customer insights into action, the retailer decided to:
By understanding not only how customers were behaving, but also understand what they wanted, dunnhumby was able to help the retailer uncover what was holding their loyalty program back and ways to increase its performance. The retailer experienced a 7% lift in the number of customers making point redemptions and a 3% sales increase resulting from the new statement mailings.