A major leisure Plc wanted to understand the loyalty impact and financial performance of a multi-million £ investment in a loyalty programme. The board was looking to understand the true impact of the scheme to the bottom line and what new opportunities existed to leverage the scheme further through targeted activities to different groups of customers.
What We Did
We deployed a simple and robust approach that we applied at the customer level to build a picture of current customer behaviour. We looked to establish any increased frequency, measuring intervals between visits to determine clear evidence of a change of behaviour. We tracked new registrations to provide a set of metrics to start to understand behaviour of new members with and without the loyalty card. Churn propensity was modelled for customers prior to the launch of the program and compared against the actual results for those that joined the programme. Finally we reviewed the variance in performance of the scheme by different business regions and locations. This rapidly identified areas of strong performance as well as operational weaknesses.
The review gave the client a clear indication of the true financial return they were receiving from their investment. In addition, a review of which elements of the scheme were successful for which types of customers and which were not. Direct actions to change the commercials and mechanics were clearly supported by the findings from the analysis providing much needed justification for a commercial re-negotiation with the schemes partners.
Our loyalty business model and economics were seriously out of kilter with our reward strategy. The analysis from the Beyond Analysis team enabled us to rectify this without disappointing our customers.