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Smart loyalty initiatives boosting sales and ROI

Customer Retention | CRM | Loyalty Management | Machine Learning

Our client, a leading UK Brand, wanted to assess the impact, in terms of sales uplift and additional yield, of some newly designed loyalty initiatives in the form of personalised product discounts accessible through their website.

CHALLENGE

Isolate the impact of each initiative.

t was very difficult to isolate the impact of each initiative, as at the same time other factors such as baseline price fluctuations, competitor pricing and other promotions were also at play.

We were asked to come up with a robust methodology of how to measure the actual impact of each initiative that would also be easily communicable to the company’s senior stakeholders, proving the immense value and ROI of the new initiatives.

SOLUTION

Built a custom clustering model.

BACK TO TOP

We split the analysis into pre-and post-initiative periods and then built a custom clustering model, that creates homogeneous groups in terms of a customer’s buying behaviour i.e. how often they buy, what type of product, at what value etc. We then analysed the relative divergence in behaviour in those groups, by splitting each homogeneous group in two; those that used the initiative and those that didn’t.

The results were astonishing. We managed to quantify the impact of the initiative across thousands of customers and the sales uplift was proven to be in the region of tens of millions extra revenue per annum.

Our client then used this to build a compelling business case of how this initiative has boosted its sales and has extended the use of our approach to test a series of other promotional campaigns.

Sounds interesting?

Get in touch now and we can schedule a free, one hour, consultation. No strings attached.

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