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.
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.