Re-engaging customers revitalises sales
A North American grocer used a targeted engagement strategy to spot and reverse falling customer loyalty, adding $1.5 million in sales in the first year.
$1.5 million
additional sales in year one
$31
more spent by new customers on average
67%
of drifting customers returned to shop
A loyalty programme that had stagnated
A family-owned grocer had been running the same card-based loyalty programme for nine years. It had members, but no real visibility into customer behaviour and no strategy for using the programme to grow sales.
Revenue was growing, but not for the right reasons
Initial analysis showed sales growth was being driven by new stores and higher prices, not from customers buying more. In reality, customer loyalty was slipping, contributing to an overall loss of $37 million.
Insight revealed the true priority
A deep dive into shopping behaviours proved just how important it was to retain the retailer’s core customers: 17% of shoppers accounted for 64% of total sales.
A strategy built around four customer types
dunnhumby designed a personalised engagement strategy that treated customers differently depending on their behaviour: rewarding loyal shoppers, onboarding new ones, winning back those who were drifting, and encouraging existing customers to try new products.
The results
The results
The programme delivered reach, redemptions and revenues
The revamped programme reached 208,000 unique customers, with a 60% participation rate and a 36% redemption rate per campaign.
An ongoing partnership
We continue to work with the retailer to strengthen the engagement programme, build customer loyalty, and support long-term growth.
A loyalty programme designed for tomorrow
By moving from a static scheme to a more targeted engagement strategy, the retailer helped re-engage drifting customers and strengthen long-term loyalty.
