Consumer Loyalty Solution2018-12-14T13:51:28+00:00
CASE STUDY FOUR CONSUMER LOYALTY SOLUTION Creating lasting loyalty through rewards

Top 3 Federal Credit Union

BACKGROUND

  • One of our client’s rewards program goals is to foster ‘stickier’ relationships with their customers
  • One of the most popular redemption items in the program is cash-like gift cards, and our client challenged us to examine whether these items truly foster loyalty
  • Based on internal and external research, we concluded cash-like gift cards are less likely to foster loyalty compared to other reward types
  • Therefore, we saw an opportunity to offer other reward items to cash-like redeemers to achieve our client’s program goals

OUR SOLUTION

We worked with our Data & Analytics and Marketing teams to design a marketing campaign that could compel cash-like redeemers to redeem for other types of rewards.

  • Our Data & Analytics team designed a brand affinity model which delivered rewards recommendations that would appeal to cash-like gift card redeemers based on historical redemptions
  • A promotional campaign that featured the recommended non cash-like brands targeting select customers was developed by our Marketing team

THE RESULTS

  • For the month the marketing campaign was live, there was a 14% decrease in cash-like gift card redemptions compared to prior year results
  • In the same period, non-cash-like, closed loop gift cards saw a 71% increase in redemptions compared to prior year results