With the acceleration of loyalty databases and digital retailing, our clients often have a wealth of ‘what’, ‘when’ and ‘how’ data at their fingertips.

Our retail specialist team has the experience and analytical expertise to add the ‘why’ and the ‘what next’ to enrich your customer understanding and give your business the confidence to make impactful decisions.

Improving retail market share through customer loyalty

Case Study: Improving retail market share through customer loyalty

Through our partnership, our client can now confidently optimise their loyalty account proposition with a deep understanding of what sets themselves apart in the market. By measuring inferred rather than stated responses we could accurately recommend both product and communication hierarchies to maximise sales uplift.

A prominent Australian retailer had identified that their account/loyalty card proposition, while popular, was not driving the incremental revenue required to meet their ambitious growth targets. This client had a strong understanding of when, where and what their customers purchased, but were seeking to understand where else customers were spending (share of wallet), what aspects of the loyalty proposition they valued, and what would encourage them to switch their spend.

Our research commenced with a qualitative exploration of the target market. We used linguistic and semiotic analysis as well as projective research techniques as these are particularly important to infer importance and ascertain pain points in the retail industry where low-attentive, highly habitual purchasing behaviour is prevalent.

Phase two included a quantification of the opportunities though an online U&A survey. We determined the hierarchy of factors important when selecting a retailer and measured the relative performance of our client and their competitors on these. Finally, we assessed the motivations, needs and barriers to join and use the loyalty account, as well as how these differed across the customer types.

This research gave our clients the confidence to act, and the detail to create their go-to-market strategy. As part of our collaborative approach we were also able to bring together multiple areas of the business including merchandise, marketing, customer loyalty and strategy, and align them on the one source of customer truth.