Loyalty Strategy Audit and Refresh

Examining how grocery shoppers wanted – and expected – to be rewarded.

A large grocery retailer asked Chilli Pepper to review its existing Loyalty Programme to identify key areas of enhancement and ensure that it continued to deliver for its customers and for the business. As a result, we conducted a comprehensive audit and strategy refresh that delivered clear strategic recommendations as to how it could future proof its Loyalty Programme for its ever-changing customer needs.

The Irish grocery retail sector has been typified by a number of legacy loyalty programmes, which although successful in their own time, can often be superseded by new trends, new technologies and new customer expectations.

The decision, for many programme owners is to constantly refresh their Loyalty Strategies, to ensure they are future proofed by staying relevant to their ever-changing customer needs.

One of Ireland’s best-known grocery retailers approached us with a brief to provide a comprehensive review and refresh of its existing loyalty strategy.

The Grocery Retailer loyalty programme had been successfully running for a number of years, but with the influx of new competitor programmes in the market, it needed to ensure its programme was:

  • Generous enough to drive ‘first choice’ grocer
  • Future proofed for its ever-changing customers
  • Tapped into its customers new loyalty triggers
  • Continued to deliver for the business

Chilli Pepper went through a highly detailed and fascinating process to fully evaluate the current status and efficiency levels of the programme – and to ascertain which elements needed to be refreshed in order to make it ‘fit for purpose’ for a new generation of shoppers.

We conducted our 7-Point Loyalty Effectiveness Audit, which covered elements such as KPIs, mechanic analysis, participation analysis, process review, data and customer feedback analysis and futures risk analysis. And of critical importance, we also assessed the financial impacts of the programme’s performance levels – and how it was faring in terms of return on investment against the loyalty industry.

At the end of this process, we were in a position to make a firm recommendation, which pointed out to the programme operator how it was performing in terms of loyalty, and how the programme could be enhanced.

We then developed a refreshed loyalty strategy and took it into research to glean robust customer insights into the recommended improvements.

The result, customers had a huge affinity to the brand and were extremely open and actually delighted to be able to share their thoughts on how the existing programme could be improved, and most importantly, what they preferred about the recommended enhancements.  They liked that it would be easier to use, would give them more ways to participate and more ways to be rewarded!

As a result, a clear and comprehensive Loyalty Audit, and a refreshed Loyalty Strategy & Business Case were developed to support the impact of the findings and recommendations.

The refreshed Grocery Retailer Loyalty Strategy highlighted the areas that needed to be improved, the new customer Loyalty Triggers and the Loyalty Levers that the brand should implement, in order for it to drive more participation and loyalty from its customers.

Chilli Pepper is a fantastic group of professional and creative people. They are not only a flexible, efficient and professional organisation, but a group of people that really cares about delivering winning results for you.

There is nothing better than collaborating with a team of people whose commitment knows no bounds and who are focused on building real business partnerships. Chilli Pepper immersed themselves in our business, not just to understand the context of their brief, but to understand the context of our wider business.

I have recommended Chilli Pepper to other business colleagues, without hesitation, due to its strategic and creative skills and its sincere partnership model in working with our business.

Head of Marketing Strategy.

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