Designing an integrated customer loyalty program

With more than 118 standalone stores and 1,000 cabinets with retail partners today, this UK retailer has been serving hand-crafted donuts and fresh coffee to shoppers since 2003. The branch has a loyal fan base, ranging from daily shoppers to business leaders treating their office to a dozen (or two).

A need for streamlined channels and consolidated incentives

Members of this organization’s former loyalty program weren’t engaging. In fact, at the beginning of the year, members had a lower average transaction value (ATV) than non-members. 

integrated customer loyalty platform on mobile

The abundance of free items on offer was a notable issue. Nearly everything was rewarded with a free donut—from anniversaries to referrals to repeat purchases. Customers had little incentive to spend more or engage with the brand outside of their normal shopping habits. 

Additionally, awards could only be earned or redeemed at the brand’s stores, even though for many loyal members the nearest and most convenient purchase channel was their local supermarket.

The retailer needed to implement a new loyalty strategy, with more channels, greater personalization, and fewer freebies, and a new technology platform to support it.

Implementing a personalized multi-channel program  

The brand partnered with us to revamp the loyalty program into a points-based system. The program used points, which customers could earn on purchases at all stores, in supermarkets, online and at some local service stations. 

In the first phase of re-platforming, our teams intentionally focused on points, mechanics and integration across offline and online channels. 

Alongside the program relaunch, they also upgraded their ecommerce platform and mobile app. We seamlessly integrated the new platforms as well as the existing POS provider.  

Using APIs from our customer loyalty and engagement platform data for each member (including their points balance and available awards) was displayed within each channel, creating a consistent experience. 

Our client services team helped with management of the retailer’s marketing communications, using email as the primary channel to promote the latest offers, new flavors, and program benefits, as well as providing transactional emails related to the loyalty program. Using customer data, including previous purchases, emails were tailored to key customer segments. 

The results 

The organization is already seeing key metrics trending in the right direction. With this success, the teams are adding a machine learning service to optimize marketing communications and deliver targeted aware recommendations.

37% increase in member vs non member spend

[The platform] has been a key piece of the puzzle as we move towards a more 1-to-1 approach to our marketing communications. Creating and overlaying customer segments is so much faster, meaning we can get personalized messages to our members far more easily.

Retail Manager

The team has been so helpful throughout this project, not only in terms of the technical implementation of the new program but also in terms of their advice on the overarching strategy. They’re quick to respond and always ready to help find solutions, even when it’s outside the scope of their services.

Retail Director