The Co-Operative supermarket chain wanted to update its loyalty programme to manage costs and ensure that both customers and employees were getting an appealing and valued scheme which also gave back to the community.
One of the challenges in measuring loyalty is the lack of a benchmark with which to compare the incremental effect of loyalty – something Realise Unlimited has spent several years perfecting. Using our tried and tested techniques, we were able to build a benchmark group to assess the impact of loyalty on both groups.
In order to help our client move forward with the programme, we developed a business modelling tool that enabled them to understand the impact of different loyalty assumptions on loyalty members – in particular the impact of different reward mechanisms (points, cashback, prizes etc), different levels of reward and the impact of breakage on scheme value.
Supported by research to understand the likely uptake of different scenarios, we were able to understand the financial and behavioural implications of different scenarios which could be tested against historic data to allow the formation of the clear set of recommendations as to how to take the scheme forwards.