Case Study
Revitalisation of the loyalty program of a global coffee chain
About the Client
- A leading American multinational chain of coffeehouses and roastery reserves
Business Need
- The company wanted RocSearch to conduct an in-depth research on the OPEX reduction strategies on a global scale
- The client also asked the team to focus on the cost reduction strategies
- It had concerns regarding the effectiveness of its loyalty programme and whether the rewards were successful in increasing customer engagement
Approach and Methodology
- The team developed a business understanding of the existing loyalty programme by interacting with the stakeholders
- We also analysed the behaviour of customers through exploratory analysis
- We designed a solution, comprising hybrid clustering for customer segmentation
- We conducted market basket analysis to understand the product association for customers
- The team created dashboards that offered the client stakeholders actionable insights through better analysis of customer behaviour
- The programme was rolled out in phases to assess the impact of the change
Business Outcomes
- Tailored campaign offers (different from loyalty rewards) were created for specific customer segments
- A detailed cross-sell suggestion matrix was developed for each customer segment
- The findings helped the client generate savings in excess of $1mn on freebies and increased marketing ROI by 22.7%
