Reaping the Benefits of Customer Rewards
Blog: The Tibco Blog
This post summarizes four case studies where applying rewards programs have led to significant benefits for major brands. Three of the examples are in the retail sector, and the remaining summary will be in the transportation sector. Keep in mind that these are highly summarized and anonymous.
Increasing Purchase Frequency and Retention through a Rewards Program:
A famous retail outfitter with great brand recognition integrated retail shopping, e-commerce, and behavior activities with experiential rewards. Some of these activities included races, films, and social engagements.
The Need:
There were few consistent customer retention and purchase frequency metrics to monitor, and there was also a need to capture transactions better.
The Benefits:
The retailer’s customer loyalty program resulted in a three-fold improvement in member purchase frequency and a two-fold increase in year-over-year retention.
Increasing Customer Visibility Leads to Frequent Purchases:
A highly successful and service-minded hardware retailer created a loyalty program and with successful POS, and highly tiered and segmented email marketing campaigns.
The Need:
The customers were completely anonymous, and there was no targeted marketing. All marketing was shotgun and mass in nature.
The Benefits:
The customer loyalty program tied revenues to membership, yielding a strong 70% sourcing and created a 22% increase in purchase frequency.
Adding a Loyalty Program Allows a Retailer to Compete with “big box stores:”
A name-brand store was losing relevance to big box stores and even its’ own wholesale department stores.
The Need:
This chain was not participating equally in selling high-frequency, lower-cost shoes like other competitors.
The Benefits:
The loyalty program increased purchase frequency by 27% online and 36% in stores.
Airline Increases Revenue by Making Its’ Frequent Flyer Program Real Time:
A customer-focused airline wanted real-time accrual and awards available to its flyers and the ability to tap into partners in the same way.
The Need:
There was a need for real-time capabilities to augment customer point accumulation and better enable partner participation.
The Benefits:
The airline launched a customer loyalty program that fulfilled these needs and more, resulting in a 22% increase in revenue per seat, a 25% per customer loyalty increase, and the addition of 25+ ancillary partners to ensure more revenue opportunities in the future.
Net; Net:
In each case a loyalty/rewards program powered by TIBCO Reward was leveraged to increase business outcomes. Some were new programs, but others needed a boost in capabilities and features.
To learn more about how brands are maximizing their customer loyalty initiatives, check out the eBook from TIBCO, Top 10 Trends in Customer Engagement for 2015.
These are highly summarized case studies provided by TIBCO.
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