Challenge
A national specialty retailer wanted to rapidly achieve enterprise growth at double digit rates through a customer loyalty program that would increase repeat sales and average spend per customer.
Solution
The Allant Solutions Team started with making data and analytic driven improvements to the client’s acquisition, growth and retention programs. Allant helped the client execute a campaign optimization initiative where historical campaign data was integrated to generate more predictive, derived data variables to feed a sophisticated communication strategy for an existing customer loyalty program and for prospect campaigns.
Allant then leveraged the power of the customer insights developed for marketing purposes that was now maintained in a Predictive Intelligence engine for enterprise store growth. The client was able to better understand where to enter new markets, how to maximize existing markets, where to locate new stores and how to promote in new store locations across all media and channels. Within each market, the client could effectively enroll new loyalty members and establish effective rewards based on individual customer to increase repeat sales and average spend per visit.
Results
The client achieved tactical improvements including campaign ROI improvement of 15%, reactivation of dormant customers by 5%, an increase in average transaction size of 80% for promoted customers, a 100% increase in dollars spent by first time buyers and a 30% increase in average store sales. From a strategic perspective, the client achieved 44% annual growth over a 5 year period tripling its number of stores. 90% of annual sales are now driven by loyalty members.
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