Tough economic times in the Czech Republic and Slovakia markets mean fewer customers are coming through the doors of a global grocery retailer. Knowing the economic situation will continue to worsen, and existing customer loyalty is declining, the retailer engaged dunnhumby to uncover the best approach to refocus the customer loyalty program. The retailer not only wants to win back customers who have left, but also wants to their best customers to continue coming back.
To gain insight into what customers will respond to, dunnhumby and the retailer ran a trial reward campaign in both markets that was comprised of:
The retailer and dunnhumby both knew that continuous reward communication was an effective way to retain loyalty, but this trial revealed that reward statements are also an opportunity to reactivate customers.
In October, the first Clubcard Bonus Mailing was sent to 300,000 of the most loyal customers. The intent was to send the best relevant coupons to this audience to:
Reaching out to Clubcard holders with relevant reward communication delivered not only retention but also reactivation of loyal customers. During the ten week period from target to landing, there were some customers who became unloyal “Lapsed” (6 week inactivity) or “Gone Aways” (8 weeks inactivity) — those were the customers that dunnhumby decided to analyze. Here’s what was found:
In the Czech Republic: