Case Study: Customer Loyalty Program

Problem
Credit card and CRM programs were not capturing a significant portion of sales and the current CRM top-tier benefits had significant cost.

Solution
Developed a loyalty program that is fully integrated with the store credit card and delivers value above and beyond the existing CRM + credit card (PLCC) program.

3.3%

Increase in Comp Sales

23%

Increase in Spend per Member

17%

Transaction Increase from Top 20% of Members

52%

Increase in Engagement from New Customers

Key Takeaway
Implemented a loyalty program that drives sales, and increases retention in addition to a CRM + PLCC rewards program.

Background
This large department store retailer is an American discount men’s and women’s department store chain with over 260 stores in 29 states. The stores carry recent trends in clothing for both men and women, as well as home decor and accessories at discounted prices.

Results

  • Increase in comp sales = 3.3%.
  • Improved engagement from new customers, with 52% of new members making a second transaction after enrollment.
  • 10% increase in transaction penetration over CRM + PLCC, 15% increase in sales penetration.