AGENCY: IDN South Africa
CLIENT NAME: Imbalie Beauty
This was client’s first foray into loyalty. There were significant challenges ito getting client to understand that the development of loyalty is a process not an event.
Other challenges centred 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.
It is not proposed to review the program design in this section of this entry as this has been covered in another entry.
The focus here is around the use of triggered email, and to a lesser extent SMS, to send relevant communication to members of the Loyalty program.
The purpose of any Loyalty program must be to engineer behavioral change. As an agency we believe this can best be achieved via delivering the right message to the right person at the right time based upon rigorous segmentation through analysis.
The agency has developed numerous algorithms that are embedded in software that sits on top of the Placecol operating systems. It is this platform that delivers up 80 messages across the member base.
Data visualization ito the member’s particulars has also been used as a personalization technique on the triggered emails.
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.
Typical open rated for newsletters is around 30%.
Typical open rates for other emails based upon behavior is around 18%.
The communication which is ongoing is delivered mainly via email with sms as a default channel where no email address is available for the client.
There are currently +- 80 messages being sent to the membership base most of which are triggered by behavior.