Blog > Uralian drogerie retailer Lamel launched RS.Loyalty&CRM

Uralian drogerie retailer Lamel launched RS.Loyalty&CRM

One of the largest Uralian drogerie retailers launched the customer loyalty system. There are more than 120 stores operating under Lamel and Optima brands. They are located in Ekaterinburg, New Urengoy, Surgut, Tumen and other cities in Ural and Siberia. In June of 2020 the loyalty system implementation based on RS.Loyalty&CRM and RS. Analytics Loyalty has reached the first stage of completion. The need to implement a new solution was dictated by the necessity to increase the quality of personalized customer relations management in the environment of competition with federal retailers and regional drogerie retailers.  

The first part of the project lasted less than two months. ASTOR specialists completed all steps of the project remotely: examination of customer relations management processes, system installation, teaching users and launch support. By the beginning of July reward calculation and management system with custom mobile app were launched.

 Even during the worldwide epidemic, the system was implemented in two months remotely.   

Retailer launched three loyalty programs for three focus groups located in different regions- Ekaterinburg, New Urengoy and Surgut. In Ekaterinburg the monthly threshold discount system was implemented. New Urengoy stores also had a threshold system, but with bonuses. Stores in Surgut had the combined program. Clients had access to specialized discounts on products from catalog. For purchase of specific products, they received bonuses – up to 10% of the product’s cost. Testing was conducted in 40 stores an took four months.

Search for the best reward program

In August Optima started the second phase of the experiment and launched RS.Analytics Loyalty system. With it the most optimal reward program for all stores was chosen. 

“With RS.Analytics Loyalty we researched how our loyalty programs performed during these four months. First we analyzed the share of identified receipts. Then, we compared increases in traffic and client base. It turned out that all loyalty systems performed relatively well, but threshold bonuses were the most economic. As a result, this system was applied to every store.”
Andrey Risyev, head of marketing and merchandising department in LAMEL

Since 2020 Optima and LAMEL stores have started using one monthly reward system. Clients get a specific number of bonuses which depends on the purchase threshold reached during the previous month.  

Retailer identifies target groups through segmentation by age, gender, and geographical attributes while utilizing product cohort and RFM analysis. This is crucial to  set up personal offers for regular clients. Utilizing segmentation instruments, retailers can identify and return clients with decreased activity and leaving clients. 

RS.Analytics Loyalty module gathers information on sales, reward programs, clients, and customers’ baskets. This date is presented in a form of convenient dashboards and reports that help to identify hidden correlations and make informed decisions. 

What results were achieved

Since the solution’s implementation for the entire chain a bit more than two months have passed. Now there is an understanding that the loyalty management system provides tangible benefits.

In the environment of the global pandemic frequency of store visits decreased and the average receipt increased. After implementing the loyalty system, we can manage reward programs more effectively. The average receipt of customers with the card is 30% larger than the average receipt of customers without it. This is higher than the average market indicator of 10-20% increase in the average receipt for loyalty card holders.
Our personalized offers conversion for some product groups sometimes was higher than 15%. Now around 65% of registered customers are using our mobile app and we are working to increase this number.
Our short-term goal is to increase the receipt share of loyal customers to 25 percent and work on increasing the frequency of visits to improve Like-for-like commodity circulation indicators.
Andrey Risyev, head of marketing and merchandising department in LAMEL