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 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.
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.