Key CCG Services
Faced with increasing market pressure, this specialty retailer launched its preferred customer loyalty program to bolster customer loyalty and capture more share of wallet. The multi-tier loyalty program included a combination of soft and hard benefits to entice higher spending.
The new Pier 1 rewards program was well received by customers and increased sales for the retailer. Pleased but not satisfied by the preferred customer loyalty program’s success, the team at Pier 1 reached out to the retail customer loyalty experts at CCG to make the program even more engaging to shoppers — and more profitable for the retailer.
Solution: Target Customer Loyalty to Improve Pier 1 Rewards Program
As experts in statistical techniques that maximize customer reach, CCG’s customer loyalty pros leveraged their proprietary Statistical Loyalty Program Optimization™ model that quantifies the reach and desirability of existing and potential loyalty program benefits.
Our evaluation showed:
- The existing preferred customer loyalty program was too discount oriented, lacked excitement and had little differentiation between program reward levels.
- Customer benefits and rewards were not relevant or frequent enough to influence customer behavior.
- Since Pier 1 was evaluating customer status only once a year, the retailer was losing the momentum needed to entice customers to progressive shopping thresholds.
Going from Good to Great
Following a detailed analysis, CCG’s customer loyalty experts recommended that Pier 1 incorporate the following tactics to target customer loyalty, increase customer engagement and boost sales:
Revitalized Customer Loyalty Program Yields Powerful Results
Buoyed by a fresh approach, the Pier 1 customer loyalty rewards program saw a significant increase in customer spending. In fact, results showed a much stronger response to the loyalty program’s revised spending levels and reward program benefits than the retailer anticipated:
Shopping frequency increased to an average of six times per year
Spending per transaction increased to an average $142
Annual spending increased from $692 to $841
Shareholder value increased by 135%
Key CCG Services
Loyalty program development, refinement & management
Strategic CRM consulting
Statistical Loyalty Program Optimization™
Qualitative & quantitative customer research
Modeling, including predictive, look-alike & regressive modeling (e.g., decision trees)
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.