Key CCG Services

  • Relationship Marketing Program Analysis and Redesign
  • Program Launch and Implementation
  • Consulting Services
  • Database Analysis
  • Data Mining and Segmentation
  • Creative Services
  • Product Management
  • Measurement

Situation

PETCO asked CCG to evaluate and enhance its P.A.L.S. rewards program. The pet supplies retailer wanted to more effectively differentiate PETCO from its competitors while creating a unique loyalty program that would fit PETCO’s image and be difficult to duplicate.

Strategy

CCG’s strategic consulting team developed a top tier for the P.A.L.S. program, called the TOP DOG best customer program, to test in nine markets. The program was designed to:

  • Create strong customer relationships to capture market share and drive profitable growth.
  • Build incremental sales through attributes other than price.
  • Drive PETCO to customers’ “top-of-mind” and increase frequency of purchase.
  • Grow share of customer purchase through relevant cross-sell and upsell messages.

Next, the data team worked with the strategic consulting team to:

  • Mine the data to find best and next-best customers for inclusion in the program.
  • Segment customers by pet ownership to develop customer profiles.
  • Analyze customer transactional history to drive offer selection and other promotions (such as spend more/save more) by individual.

As an integral part of the TOP DOG loyalty program team, our creatives were able to take part in the strategy development to more fully bring the objectives of the program to life:

  • A unique look for TOP DOG makes customers feel “special” while still fitting within the PETCO brand.
  • A “teaser” mailing served two purposes: to announce the program and to gather data to populate PETCO’S database.
  • The newsletter, a cornerstone benefit and key communication vehicle, has a cost-effective format that allows for versioned messaging by pet category and lasered offers based on customer transactional history.
  • Additional traffic-driving customer touches again appealed to customers’ personal interests through versioned creative and offers.

Results

Some individual mailing results were stellar, and all segments achieved the desired response. Additionally, in the first 17 weeks, the program generated a 3.3% lift in sales, 5.46% lift in margin and 3.9% lift in transactions over the control group. CCG also helped the TOP DOG team gain buy-in from top executives to roll the program out nationally.