Earning customer loyalty

Earning customer loyalty

Building loyalty for a household brand, without resorting to classic points for rewards schemes.
The Challenge

This discount retailer's customers are heavily motivated by price and can often lack loyalty in the face of aggressive discounting and pricing initiatives from competitors.

Mimicking competitor tactics (such as vouchering, short-term discounting) is challenging for a principled ‘every-day low price’ retailer.

Escalating discount- and voucher-wars just serves to drive down margins across the industry, and creates an expectation of discounts as a way of doing business. Both of these are incompatible with the retailer’s values and business model.

This required a different strategy to building loyalty – one that earned long-term loyalty rather than bought it in the short-term.

Earning customer loyalty
Our Approach

This project was for one of the world’s biggest multi-national retailers with one of the most respected brands. We needed to avoid generic ‘loyalty scheme’ designs.

Mission 1: Understand customer needs.
Loyalty will first and foremost be generated by meeting customer needs – ideally both their expressed desires and their unrecognised needs. We engaged over 50,000 customers across the world to understand and map how their shopping needs and motivations drove consideration and loyalty.  
Mission 2: Design innovative ‘sticky’ services.
Once we understood customer motivations and needs, we were able to design a portfolio of value-adding services that the retailer could use to increase loyalty. These included recipe customisation, authoring and reviews, smart shopping lists, digital receipts, exclusive access to pre-order seasonal items and many more.  
Mission 3: Launch and learn.
However, we stressed the importance of actively trialing the services, listening to consumer opinion and refining the propositions over time. This meant introducing new ways of working and new approaches to decision-making at every level, from board-level to the teams working at the coal-face.
Earning customer loyalty
The Results
  • Scalable customer loyalty framework that connects customer motivations with value-adding services.
  • New decision-making approaches based on evidence and direct customer input.
  • A flexible and effective approach to loyalty adopted in all markets and an ability to leverage global investments in product and service design.

Services Provided

  • CX Strategy.
  • Experience Design.
  • Brand Design.

Learn more about this project:

Clara Llamas
Director of Design
Ainārs Tambaks
Data Analyst

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