Category: Case Study EN

Implement a Highly Efficient and Flexible Loyalty Solution in a No-code Model

How do you implement a loyalty program for a grocery business with nearly 1,000 outlets using Loyalty Drive Enterprise?

About project

The market for consumer loyalty programs, especially in the retail industry, is very extensive in Poland. Our client (a grocery store chain), which did not have a loyalty program to date, approached us with a need to create and implement such a solution. The loyalty program was to be tailored to its business profile and effectively support long-term growth, while taking into account the technical limitations and systems used in the company.

Here is a summary of the project, in which, with the help of Loyalty Drive Enterprise, we created an attractive loyalty program for consumers, meeting the client’s business requirements.

Key results

  • Implementing a massive loyalty program for more than 1.5 million active users.

  • Handling more than 50 million user account transactions annually.

  • Providing a solution based on Loyalty Drive Enterprise’s highly efficient and scalable loyalty engine that responds to more than 1,000 concurrent API requests with a response time of less than 0.5 seconds (500 milliseconds).

Business goal – improving customer retention

Our client’s main competitors were already successfully running their loyalty programs, so the solution implemented by the client had to be at least as good, and ultimately better and more attractive than programs available on the market, known and liked by consumers.

The business goal was to increase shopping frequency and basket margins. The intention of our activities was to improve performance in the context of share of wallet, so that as much as possible of a given consumer’s spending is carried out within our Client’s store network.

Woman in grocery using mobilephone

Challenges

We wanted to create a solution in a no-code model, so that ultimately it would be the business user who would manage the loyalty program, offers, mechanics and communications, without having to involve the IT department on the vendor’s side.

Since the client has specific operational processes, it was important that the program and the IT solution being implemented should not shatter the existing order, and could easily adapt to the stagnant situation on the client’s side, integrating with the distributed infrastructure, and ensuring live collaboration with POS systems and customization under the processes already in place on the company’s side. We assumed that the main channel of access to the loyalty program would be the mobile application. The challenge was to strike a golden mean between making the app as simple and intuitive as possible, and providing a wide range of functionality for users.

The app had to be tailored to all age groups, as we did not assume the possibility of offlien registration for the program with a plastic card. Registration for the loyalty program does not disrupt the customer service process in stores and does not require an employee. In addition, when creating the loyalty program, we kept in mind the existing activities on the customer side and naturally integrated them into the functioning of the mobile application.

Solution

The client was looking for an experienced provider of loyalty solutions, whose strategy would fit into the business model and creatively relate to the company’s positioning and image, which had been encoded in consumers’ minds.

The most important criteria for selecting a solution were:

  • Scalability and ease of adapting the solution to the existing infrastructure
  • High performance of the tool
  • Experience of the partner and its team

In order to prepare a business case that synthesizes the costs associated with the program, presents the profits that can be achieved and enables the definition of key indicators (such as recruitment, data quality, card bargains), Loyalty Point’s experienced consulting team carried out the „Raport Otwarcia” project. The process itself is very methodical and, in addition to an analysis of the organization’s available data, also involves a review of available IT tools, team structures and processes.

It turned out that the initial concept of the loyalty program, independently developed by the client, including assumptions about functionality, rewards and the mechanism for awarding them, based only on averaged values of shopping baskets, would make the rewards difficult to achieve for most consumers and the program itself unattractive.

Using a proven methodology, we revised the original assumptions and initial ideas for the loyalty program. Through the use of transactional data and based on a simulated customer profile, we made the underlying mechanism significantly more attractive.

Mechanics of the program

The developed mechanics accrue benefits to the club member’s account (points) on the basis of realized expenses. The parameters of the base mechanics are fully customized – the business customer decides on his own what products and assortment groups he offers in the program. He can freely control them based on assortment, store location, limits and other values. The ability to impose per-consumer limits provides the potential to create more attractively priced offers, and on the other hand significantly reduces the possibility of fraud. With a loyalty program, a company can manage communications and price offers much better.

UCE Research’s study “Inflationary Dilemmas of Poles. What do we save on in stores?” indicates that in times of crisis, more than 78% of respondents look for cheaper items and promotions on store shelves. As a result, we are noticing increased interest in promotional newspapers and loyalty programs. That’s why we were keen to build ease, speed and accessibility to the benefits in the program, which will mean greater appeal for consumers. Welcome points, products sold at very low price, high-rotation products available at attractive prices have resulted in customers’ openness to the loyalty program – shopping within a brand simply pays off for them.

By offering club members fast-moving products at very competitive prices, we allow its participants to save real money. The high efficiency of the system ensures that after a transaction, the club member immediately receives information about the benefits gained. This is the best authentication of the program’s operation.

Loyalty at the center of activities

The client put the loyalty program at the center of activities. It was actively involved in its implementation, including creating newspapers with extensive information about the program, promoting offers only for club members, investing in ATL communications, and preparing training for employees. Retailers in stationary stores were involved in the process of creating the loyalty program. By making the application available to them pre-release, they learned about the idea, collected points and took advantage of offers and promotions. As a result, they themselves experienced the benefits of belonging to the loyalty program and, as a result, sincerely recommend joining the program to customers. We are definitely more willing to recommend things we have tested ourselves and have confidence in. Salespeople explain and remind people about the program, being ambassadors for it.

At Loyalty Point, we offer a solution that is flexible yet easy to implement. By using the Loyalty Drive Enterprise engine, the loyalty program has been implemented and aligned with the customer’s existing systems. The advantage offered is a flexible API, enabling connectivity to multiple systems and databases, supporting up to 1,000 concurrent queries with a response time of less than 0.5 seconds (/500 milliseconds) within this one project. In addition, it is a no-code model solution, allowing the business user to customize the offer, communication and other elements of the loyalty program on their own, depending on consumer needs, location or other parameters.

Results

The client successfully implemented an attractive loyalty program. Thanks to a data-driven strategy and strong commitment on the client’s part, the results were better than expected at the beginning of the project.

  • Recruitment targets exceeded 6 times within the established timeframe.
  • Up to several tens of % of transactions executed on club members’ accounts. This is a great result for such a short time of the program’s operation (the program launched in March 2022).
  • Excellent ratings from employees and consumers (the mobile application is one of the best rated in its category).
  • Significant increase in assumed business parameters such as the margin per customer minus the cost of the program – which means that we managed to increase the frequency and value of the receipt.

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If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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Long-term activation of Continental Opony Polska Business Partners – B2B program

The competition on the market of B2B programs is high and usually the biggest challenge is the difficulty in building the expected involvement
of Partners.The ContiPartner loyalty program to support B2B sales has been on the market since 2015, but previous editions were conducted
in a dispersed environment, which resulted in prolonged order lead time and little involvement of the Participants.

In 2019, together with Continental’s experts, we were faced with a big challenge: rebuild the trust of the Partners, adjust the whole Program
to individual needs and expectations that have changed since the beginning of the Program and maximise the activity of the Participants.

The main emphasis was put on the intuitive use of the program, because we know that in the B2B market, time spent on operating the program is one of the biggest challenges.  An important aspect was the preparation of a platform that was equally intuitive and easy to use, also with a smartphone.

Solution:

  • New ContiPartner sales support program in the B2B model was developed on an integrated platform referring to an online store, where the accumulated points are your currency.

  • To meet the expectations of the Participants, in 2020 the integration of online payment for orders was implemented, which allowed Partners to get the prizes not only in exchange for accumulated points, but also made it possible to pay for them from their own budget. This proves that the prizes are so attractive and well-suited to the Participants’ needs that they are ready to pay for their orders additionally from their own resources.

  • In the process of recruiting new Partners, Continental own sales force was involved, and their task was to ensure that the persons representing a given company in the Program were at the same time the decision-makers and those having the greatest influence on the common business.

  • An important element of the changes was the refreshment of the creative concept and targeted communication activating Participants sent at key moments of the program depending on sales priorities. It also applies to seasonal/special events and information about new products in the prize catalogue, opportunities to earn additional points and occasional greetings.

Results:

A B2B program does not have to be complicated in its mechanics to be effective. On the example of ContiPartner we show that we have achieved the goals that are particularly important for Business Partners: fast and intuitive operation, rewards that meet business needs and trust. The effect of our actions is an increase in the registration to the Program and the activity of existing Partners, as well as a minimum number of the complaints received. The improvements in the program also contributed to a significant increase in the number and value
of prizes ordered.

96% of the logged-in Participants placed at least one order. The waiting time for the prize was shortened from 25 working days (edition 2018),
to 3 working days after placing an order (edition 2019), with the statutory delivery time declared to 10 working days. Compared to the 2018 edition, the number of complaints was also minimised in 2019 with
a 78% decrease.

The success achieved was preceded by a detailed analysis of data, processes and, above all, market needs. We have prepared a dynamic, step-by-step plan to adjust the Program to the current needs of the Partners and its development strategy for the future, which proved
to be a great success.

Ready to cooperate?

If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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How to transfer the best practices of your kitchen planning services to online form within 7 days?

The pandemic and the closure of brick-and-mortar stores forced one of the leading retail chains to adapt the offline kitchen planning service to online service overnight. Inability to make direct contact with the customer and to sell through brick-and-mortar stores was a huge challenge for the company. The challenge for us was to move a specific service, based on direct contact with the designer, to a remote form in just a few days.

Our Client wanted to keep kitchen sales at a constant level, so we were responsible for upgrading communication, tools and resources for transferring the services – which were based on direct contact between an employee and a customer – to the Internet.

Solution:

  • We have adapted the tools available to quickly adapt to the new conditions and maintain continuity of sales.

  • We have extended the possibilities of remote contact at every stage of the purchasing process: The Online Customer Service team consisting of only few persons was expanded to include employees from specific stores who were trained to handle online kitchen planning within just a week.

  • We provided remote support for after-sales processes in order to maintain a high level of satisfaction: We increased the effectiveness of the online complaint process.

Results:

The expansion of technical capabilities in the field of “Remote Kitchen Planning”, combined with an increase in the number of planners and, at the same time, lowering the price to PLN 1, resulted in an increase in the number of services provided by 6200% compared to the previous period. When the price was changed to PLN 49, the increase remained at the level of 1900% in relation to the period before the pandemic.

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If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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How to increase the number of tour bookings by 70% without standard price reduction – Rainbow Tours

The aim of the campaign was to offer first minute holiday deals to customers travelling with a travel agency. The challenge was to create
an offer without a standard price reduction. We wanted to increase customer engagement and recognise returning customers who have already travelled with Rainbow Tours. Our goal was to increase the number of first-minute bookings compared to last year.

Solution:

  • The analysis of transaction history carried out made it possible to build segments and match motivators and benefits, which were emphasised in the communication.

  • Thanks to customer segmentation we were able to reach them with a personalised offer, adjusted to the travel preferences of each person. Sequential, well-targeted communication and rewarding loyal customers with vouchers has increased their willingness to buy trips more in advance.

  • We built a scoring model that identified the customers with the highest probability of purchase, which allowed us to focus our limited resources and sales force on the customers we considered most interested.

  • Instead of a typical price discount, which reduces the profit from the sale of the deal, a coupon for the purchase of the next trip was introduced, the value of which depended on the number of previous transactions.

Results:

Thanks to our solutions we were able to reach the people who were the most interested in our promotional offer. Additionally, we managed to personalise the communication and adjust the selected offer attributes to the preferences of our customers – the families with children, young singles, people who value active recreation or other, selected segments of customers, received dedicated messages. Thanks to an appropriate analysis of the customer structure, their loyalty from previous years could be rewarded.

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If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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How to increase sales of products by means of an engaging campaign and build a positive image of the sub-brand – S.C. Johnson, Kiwi

For S.C. Johnson brand we have created a consumer engagement campaign to build a positive image of the Kiwi sub-brand. Our sales support consisted of developing the concept and communication strategy. In addition, we were responsible for the preparation of the creative concept for the website and effective design of sales-generating materials. Our activities were to ensure an increase in sales of products in the autumn and winter period.

Kampania Kiwi - Gdzie buty poniosą

Solution:

  • As part of the project, we initiated cooperation with influencers – we prepared the shipment of creative packages to them. Karolina Gilon and Karol and Ola Lewandowski from the YouTube channel “Busem przez świat“ (Bus around the world) were involved in the action.

  • In order to ensure the involvement of the campaign’s recipients, we organised a competition to increase consumer activity. We paid attention to the different passions and activities of the Recipients. Sneakers work well in any situation, so you need to take care of their appearance. By taking the #KiwiChallenge , you could win PLN10.000 for your dream trip, 10x vouchers for personalised shoes and 5x Kiwi Sneaker Care sets.

Results:

Thanks to properly planned, engaging promotional actions, it was possible to achieve an 80% increase in product sales compared to the same period. Additionally, the promotional materials were displayed almost 5.6 million times.

Ready to cooperate?

If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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How to achieve a 50% increase in sales through selective promotion?

The sale of the promoted products with the use of TV advertising coverage generates great interest, especially during the last days of the offer, but at the same time causes that some potential customers decide not to make the purchase due to the piled up traffic in the stores. In cooperation with one of the leading retailers in the country, we took up the challenge of using customer knowledge to identify those interested in a particular product range and increase conversion by offering personalised deals.

Solution:

  • Implementation of proprietary tool – a targeting engine that collects about websites visited by a loyalty program participant.

  • Recognising what the member is interested in at the moment. This allows us to offer a personalised offer to an identified customer in real time.

Results:

The proposed strategy of action enabled greater identification of customers and recognition of their purchase path, thanks to which it is possible to reach the people potentially most interested in the promoted offer and close the purchasing process.

Ready to cooperate?

If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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Taking over the global loyalty program solution and improving it in the polish market – Decathlon

Management of the Decathlon Card loyalty program until April 2019 was carried out globally by the French team. Loyalty Point faced the challenge of taking over program management in Poland.

After an earlier data audit and implementation of development systems, we have been handling the CRM system for the Decathlon Card loyalty program since 1 April 2019.

Solution:

At the beginning of the project, an audit of the loyalty program managed by the French team and the segmentation of Decathlon customers using the Card was conducted. On the basis of the analyses carried out, Loyalty Point proposed to improve some of the processes related to point calculation and voucher generation/sending to the Customers. The basic mechanics of the program did not change – the main goal was to maintain the program based on the CRM activities carried out earlier.

The implementation on our side included:

  • integration of the systems into the French FTP

  • implementation of data exchange processes

  • creation of point calculation and voucher generation processes

Results:

Currently, the team is working on advanced business data analytics, deepened customer segmentation and creation of automatic communication paths, as well as implementation of personalised targeted communication in CRM system.

A new loyalty program strategy has been developed based on the basic mechanics, expanded with additional options, putting the consumer at the centre of attention. The customer decides how the points collected on their Card are to be spent. They can exchange them for any of the services available in the Decathlon ecosystem or take advantage of a well known cash voucher.

Ready to cooperate?

If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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How to build an attractive loyalty program for a brand from the sector where the frequency of purchases among customers is low –
Vision Express

When developing the loyalty program strategy for Vision Express,
a leader in its field, the challenge was to achieve as many customer-brand interactions as possible because the optician industry is characterised
by low purchase frequency. Creating a comprehensive eye care program for the Members and their families, combined with all Vision Express services, was the goal we wanted to achieve. 

Solution:

  • Given the specifics of the industry in which Vision Express operates, it was important to offer an extensive program benefiting the whole family. It was necessary to ensure that the Members would be in contact with the brand as often as possible. The regular customers were offered a program that combined the complex needs of an optician store customer in one place.

  • We decided to create a program with the tools used so far by Vision Express, gathered under a common communication umbrella. Previously, the brand used many different systems to achieve its sales and marketing goals. We implemented an omnichannel platform, SAP Hybris, which unified the functioning of Vision Express brand with Vision Care.

Results:

Thanks to a reliable analysis, the applied mechanics of the program contributes to the increase in the number of visits of customers to the stores. In April 2020, at a time when online tools became particularly important, Vision Express showed the world its new e-commerce platform, with the fully integrated Vision Care loyalty program, which
was a huge success.

Ready to cooperate?

If you are interested in our offer, have a brief for us or you want to know how we can support your business, write to us.
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How to increase the chance of purchasing a product with the help of machine learning

How and when to communicate with a loyalty program member in order to achieve a higher level of communication efficiency despite a reduced number of promotional offers is a question posed by one of the largest retail companies in Poland. The aim of the project implemented for this company was to better match the communication and the offer to the needs and expectations of the members on the basis of using the potential of the loyalty program database.

Solution:

  • We have built scoring model, based on the client’s system of Look-a-like modeling, which automatically includes the search for a given promoted assortment.

  • Using artificial intelligence we were able to dynamically create target groups for individual campaigns based on the data and machine learning. The communication is carried out in the text message, email and digital channels.

Results:

Automation of the model building and validation process contributes to significant savings in effort and working time. Thanks to the Look-a-like modeling, we can also use the system indications for a group of loyalty program members for communication work in external media. Models interpreting the scoring layout to a large extent improve the way the generated communication is generated, the solution we install contributes to increasing the overall store overall.

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