GROCERY CHAIN

Loyalty Program

The client is a major Swedish grocery chain with more than 600 stores and on-line sales. The company has the ambition to deliver the market’s most attractive customer offering. A successful customer loyalty program is, besides e.g. investments in new store formats and on-line sales, one of the key focus areas of the client. Differ was engaged in leading the transformation program of introducing a completely new loyalty program that meets both financial requirements and CRM and customer experience requirements.

THE BACKGROUND

The Swedish grocery market is a mature market, facing some important trends in consumer behaviour. The competition have been investing in modern loyalty programs linked to an automated and more personalized CRM. The client has been aware of the fact that their loyalty program has not been giving the financial effects as expected and that there is a need for improved CRM. With more than three million members, the client’s customer loyalty program is one of the largest on the Swedish market.

THE CHALLENGE

Extensive analysis showed that the costs associated with the existing bonus program exceeded the benefits. The mechanisms of the program made it difficult to influence desired customer behaviours. Time to market for a new loyalty program was a top priority – the complete project, from evaluating strategic alternatives to commercial launch had to be completed within seven months.

OUR SOLUTION

In cooperation with the client, Differ managed the total transformation from cash rebate to a modern points based program with a broad range of opportunities for both earning and burning. Differ was responsible for the program design as well as program management for the complete implementation project, involving 60+ project members. The project delivered upon the following milestones:

  • A brand new loyalty concept

  • A financial model including accounting principles

  • A partner strategy and the commercial partner agreements

  • System requirements and system development

  • Organisation, roles & responsibilities and processes

  • Transformation plan and phase out of existing program

  • Organisational buy-in, internal communication, launch and training

  • Communication platform for the new loyalty program

  • Marketing and PR

THE RESULT

The new loyalty program was launched according to time schedule and within budget. Some of the results:

  • Increasing level of member registrations

  • Increasing customer satisfaction with the program, especially among top customer segments

  • Improved cost efficiency of the program

  • The new program is an important tool for driving desired customer behaviour and enables the client to differentiate communication, campaigns and rewards

INCREASED NUMBER OF MEMBERS

INCREASED MEMBER SATISFACTION

IMPROVED COST EFFECTIVENESS

Want to know more?

If you would like to know more about the project, please contact us.