Loyalty Program Case Study

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Background:

A multi-brand retailer with several distinct brands was considering developing a cross-brand loyalty program to capitalize on significant cross shopping behavior, reward current customers and motivate shoppers to increase the share of wallet that these brands represent.  Key questions:  What are the behaviors, attitudes and satisfaction levels associated with the existing loyalty programs? What is the level of interest in a cross-brand loyalty program? Will a loyalty program attract new prospects to each brand and build franchise loyalty?  What cannibalization risks are there?  Will a cross-brand loyalty program compromise the integrity of individual brands? What loyalty program elements are essential as the foundation for the prototype loyalty program?

Process:

Phase one:  Landscape/Needs Assessment

  • Explored usage/attitudes toward the current programs and the response to an integrated cross-brand program.
  • Deep dives on optimal program needs and potential impact on current behavior and brand perceptions.

Phase Two:  Quantitative

A quantitative survey conducted among Current Customers and qualified Prospects measure and validate cross-brand program interest, feature set, anticipated participation and business impact.

Phase Three: Program Development

  • Comprehensive prototype loyalty program tested among current members and prospects.

Outcome:

  • Findings confirmed deep consumer interest, significant business potential, and favorable brand image enhancement.
  • Research recommendations supported the decision to aggressively launch a cross- brand loyalty program.
  • Program was launched, met goals with minimal cannibalization, and did not compromise brand image.