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Targeted promotion outstrips loyalty points in developing customer behaviour

Posted 31/1/2017

We've just had some results back from a retail client.  Using our segmentation tool we targeted a group of loyalty customers to run targetted activity with (approx half of all loyalty customers).  These results were compared to the remaining loyalty customers and non-Loyalty customers and the results may surprise you.  Read on for the full results summary

Overall Results:

Non Loyalty Customers - Revenue Growth benchmark 76%, Transactional Growth benchmark 50%

Control Loyalty Group - Revenue Growth benchmark 76%, Transactional Growth benchmark 53.7%

Active Loyalty Group - Revenue Growth 83% (+7% incremental), Transactional Growth 58.1% (+4.4% incremental)

The activity we devised, using our clients data, increased revenue by 7% points more than the equivalent control group (which in turn grew at the same rate as the non loyalty group).  It achieved this in part by increasing the number of transactions by 4.4% points vs the control group, but also through increasing transaction value.

The active group consisted of 4 basic groups each given different, targetted offers designed to increase frequency and spend - all objectives were met.

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