Challenge

The Client is one of the UK’s largest fuel retailers with over 1,000 stations nation-wide. The client had operated a loyalty programme in the UK for some years where points were collected for every litre of fuel and could be redeemed for a fuel or in-store voucher or donated to charity. On average only 24% of customers received a reward in a given year.

With customers consuming fewer litres, the number of points members were collecting was in decline. Members were beginning to perceive the loyalty programme as insufficiently rewarding to justify the effort of engaging.

Inspiration

Changing the game by dropping points collection and shifting from fuel rewards to member benefits.

Research revealed that non-fuel retail (NFR) is an impulse purchase and UK consumers were becoming frustrated with long-term points collection programmes. The objective for a loyalty and CRM programme was to habituate NFR purchases. Rather than reward spend, we would incentivise visit frequency but place ‘visits’ in the context of non-fuel purchases.

Solution

To increase customers’ visit frequency and purchasing from the shop we knew we had to start with what we knew about each and every customer.

Customer DNA is our starting point. For each customer we map their data ‘genome’, so we understand them on three levels:

  • Individual – their profile, purchases and engagements with the Client
  • Journey – where they are, when and, using analytics, why they buy (their shopper mission)
  • Contextual – what is happening with the customer and their context of the world around them

This underpinned our bespoke decision engine that determines the next best offer to give to a customer based on their transactional behaviour, our predictive modelling and our generosity calculations.

Growth

  • Over 1.3 million registered customers between (since launch in March 2019 to Jan 2020)
  • 20,000 new registrations for The Program per week compared to the old Rewards Club (SDC) programme volume of 7,000 per week.
  • An unprecedented opt in rate of 86% (compared with 50% for SDC)
  • 67% of the base active over a 13-week period
  • Average open rates of 50% (vs 34% for SDC)
  • More visits including purchase of retail products alongside fuel purchase - 41% higher
  • Average fill per member over a 13-week period increased – 14% higher
  • Average spend on NFR over a 13-week period increased – 27% higher
  • The Programme won Bronze in the Automotive sector in the 2019 DMA Awards
It is much more instant than other loyalty programmes. I can see what I’ve done and what rewards I’m entitled. Rather than get points and waiting months to receive anything.

Voice of Customer Survey

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