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Example Cases
Learn valuable lessons from these organisations:
Albertson's Incorporated
More informed decisions
Albertson introduced a Preferred Savings Card (PSC) program as part of its marketing strategy. The free card enabled customers to receive discounts on thousands of specifically labelled items. Cards scanned at checkouts enabled the appropriate discounts associated with each purchase to be applied. PSC discounts were changed weekly, biweekly and monthly. Albertson ran several promotions enticing customers to sign up for the card:
- A summer cash rewards programme giving PSC customers 5% discount for accumulated purchases over $250
- A campaign offering discounted petrol purchases
- 5% of the value of purchases of select products was funnelled into a college savings fund.
The details provided via the PSC programme gave Albertson a better understanding of its customer's needs and expectations, and enabled Albertson's to make more informed decisions about advertising, store layouts, and stocking of specific stores.
Quality Stores Incorporated
Traffic driven through stores
Quality Stores maintained household data as a basis for rewarding its loyal customers and software analysis/campaign management tools enabled the organisation to grow and improve its 700,000 member ThankQ Quality Advantage programme. The loyalty program goals were to:
- Identify cross-selling opportunities
- Build stronger relationships with customers.
Simple household information provided by members was supplemented with point-of-sale transactional data. Based on this data personalised and creative direct mail campaigns were launched. A summary of the benefits provided by the ThankQ programme:
- Rebates on purchases with cash back rewards
- Special members-only shopping events
- Free year-end account summary statements for tax claim purposes.
The programme involved simple offers that did not cost the company a lot of margin but drove traffic trough the store and brought in additional revenues.
Harrahs Entertainment Incorporated
Increased spending
As part of its growth strategy Harrahs ran a Total Rewards loyalty card programme. The program had two main goals:
- To gain a greater share of customers' overall gaming budget and
- To provide superior customer service. The programme was credited with increasing the customers' annual spending budgets from 36% to 43%. The ability to seamlessly track customer activity across Harrah's 26 properties was an important component in providing superior customer service and this was directly related to the increased spending. Each time a customer used a Total Rewards card, the time played and money gambled was recorded in a data warehouse enabling Harrahs to learn more about customers and their gaming tendencies. Each gamer received individualised marketing based on preferences and projected worth; the more gamers played at Harrah's, they better they were treated.
Coopers & Lybrand (C&L)
Retention improved through getting to know the customer better
Coopers & Lybrand (C&L) was one of the world's five largest public accounting, tax and consulting firms when one of its consulting divisions finally admitted that despite huge investment in trying to understand the customer through tools such as Customer Satisfaction Measurement (CSM) and Customer Relationship Management (CRM), it still needed to do more to retain customers. To address this C&L launched an innovative customer-supplier workout process to understand the drivers of loyalty and therefore increase loyalty/retention by engaging the customers on a much deeper level than before. The process consisted of closely facilitated meetings where the customer and cross functional supplier teams drawn from within C&L jointly identified, examined, and committed to specific improvements around common interests, concerns and opportunities. Aims of these meetings included, to:
- Examine the customer-supplier relationship in a way that went beyond CSM ratings.
- Better understand what "value" meant to these customers and how C&L could better provide it.
- Identify ways the two sides could partner that would benefit both sides economically.
- Better equip and motivate the division's employees to new levels of QCE performance.
- Institutionalise the resultant learnings and capabilities.
C&L used the output from these meetings to drive substantial change and among the dramatic and positive results were substantially improved CSM results and customer retention.
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