AGENCY: IDN South Africa
CLIENT NAME: Imbalie Beauty
This was client’s first foray into loyalty. There were significant challenges to getting client to understand that the development of loyalty is a process not an event.
Other challenges centered around technology and data analytics which had to be overcome before the program could be designed.
The run up to the launch of the program therefore required around 6 months. A pilot was then run for another 6 months to ensure the robustness of the program.
The original goal was to sign up +- 15,000 members. This was not achieved mainly due to the lack of operational entrenchment from client’s side.
The program we designed was a typical tier based program with benefits increasing as members progress through the tiers (i.e. from Bronze to Gold).
The target audience was better performing Placecol clients with the emphasis on retention.
Using a play on words members earn Care Miles (i.e. like Air Miles) which are calculated on a moving 12 months basis. Non-performers in the program are monitored carefully and given several months in which to regain their former or baseline status.
We believe that much of the success of the program was achieved through the intensive marketing automation platform that underpins the program. At any given moment in time anyone of +- 80 messages are being sent to members based on their transactional performance and derived profiles.
Year on year membership in the program has grown by 68% and 39%.
Churn across the customer base as a whole in the last 12 months was 64%. In the Loyalty base it was less than 1%.
Average frequency of visits in the last 12 months as across the base was 3,3, In the Loyalty base the average frequency was 11,5.
Average spend in the last 12 months as across the base was R1274, In the Loyalty base the average spend was R4,815.
Average basket size of Loyalty members was 20% higher than the average for the rest of the base.
Loyalty members also showed a far higher propensity to purchase retail products which is where much of the profit is derived by the group.
Members receive Welcome Packs and regular communication (e.g. newsletters and birthdays). They also received relevant trigger based communications based upon their transactional performance.