Case Study Spotlight: Thinking Differently About Loyalty

Retail loyalty programs are ubiquitous and predictable — except in the Canadian grocery space. Here, a large retailer is changing the game, transforming what customers expect from loyalty programs and what retailers can accomplish with them.

In 2013, when a major Canadian grocer was preparing to launch its first loyalty program, millions of Canadians already had loyalty cards from other grocers — yet grocery sales dropped 0.4% industry-wide. Clearly, there had to be a better way than the largely indistinguishable approach taken by competitors.

The grocer decided to take a different path, turning to FICO for advanced analytics to fuel its loyalty program. Predictive and prescriptive analytics determine how to make the best use of available marketing funds. Instead of indiscriminately dispensing points for every dollar spent, the program gives offers and rewards to customers based on a multidimensional understanding of individual shopping behavior. Instead of cross-selling aimed at loading up baskets and pantries, it generates personally unique sets of offers that are tailored to what members love and buy.

Now, more than 40% of the company’s grocery sales come from program members, who shop more frequently and buy more products across more categories than other customers. Customers are flocking to the program, attracted by the opportunity for up to double-digit savings on grocery bills, and thrilled by the relevancy and precise timing of the unique set of weekly offers they receive.

To learn more about this client success story, download our white paper Loyalty Is Rocket Science for a Major Canadian Grocer. Or share your own loyalty best practices in the comment section below.