Key CCG Services

Ever since launching its successful Classic Awards loyalty program in 2001, national women’s fashion retailer Talbots has been committed to evolving its rewards program to keep it relevant and customer focused. Sensing that some of the store’s customer segments, identified by reward level tiers, weren’t as engaged as they could be, Talbots decided to embark on a comprehensive review of the program. Specifically, they wanted to focus on the benefits offered in each of the program’s three member tiers and identify areas for improvement.

Call in the Customer Loyalty Program Pros

Having previously worked with the retailer on an effective program refresh, the CCG loyalty experts were brought on board once again to perform a detailed segment analysis and propose recommendations. To improve loyalty program engagement among members — and encourage non-members to enroll — the CCG team developed a two-pronged approach:

2017 Update

After analyzing the segments and current benefits structure, CCG found that, while the retailer had a strong rewards program infrastructure in place, there was a significant opportunity to garner additional revenue through more visits and increased spend by optimizing the benefits mix.

Talbots Loyalty Program Benefits Optimization: Finding the Perfect Balance

Using our proprietary research methodology benefit optimization models, including our Statistical Loyalty Program OptimizationTM, CCG was able to determine the optimal mix of benefits for each of the retailer’s key audiences. In addition, we were able to forecast the cost and revenue impact for each recommendation. This methodology uses both multivariate and Total Unduplicated Reach and Frequency (TURF) to quantify the reach and desirability of existing and potential program benefits.

Based on these results, CCG then recommended an optimized loyalty program benefits mix for each key audience. The enhanced benefits mix was based on ROI, desirability, reach, operational efficiency and support of brand drivers — as well as aspirational impact for non-members and lower tiers.

Additionally, we used proprietary metrics to calculate an “Enrollment Quotient” (EQ) and “Active Participation Quotient” (APQ) of the key audiences. EQ is a score derived by a given customer segment’s level of program awareness, understanding and belief that the program will benefit them. APQ is a score derived by a given customer segment’s level of program awareness, understanding and participation in the program. Armed with these powerful metrics, the retailer was able to compare itself to competitors, create a baseline for historical comparisons and compare differences between their key audiences.

Spreading the Word

CCG performed a communications audit of the retailer’s customer-facing communications. We found that awareness of the rewards program was high. But there was room for improvement in the way the benefits and overall loyalty program information were communicated. The CCG team made specific recommendations to increase customer engagement that included improved messaging in existing as well as additional channels not currently carrying those messages. Recommendations also included providing status, recognition, program updates and value-added content.

Updating a Classic: Mission Accomplished

By adding value to the Talbots loyalty program through an optimized benefits mix, and improving the overall communication strategy, CCG’s work helped this national women’s fashion retailer enhance and monetize its existing rewards program — to the tune of $40 million in incremental sales and $18 million in profits. The retailer’s marketing team also used CCG’s work to sell the program changes to senior management and the board of directors.

Key CCG Services

Strategic Customer Initiatives

Loyalty program development, refinement & management
Strategic CRM consulting
ROI measurement

Data Analytics & Research

Statistical Loyalty Program Optimization™
Qualitative & quantitative customer research
Modeling, including predictive, look-alike & regressive modeling (e.g., decision trees)

Creative Assets

Loyalty program communications audit, planning, design & execution

Are you next?

Want to know whether your customer loyalty program benefits are the optimal mix to maximize loyalty and revenue? Curious to see how your loyalty program metrics measure up against the competition? CCG’s retail marketing experts can help with proprietary tools, strategy, data analytics and more. Complete the form below or call us at 303.986.3000 to schedule a free consultation and see how we can help you.