Welcome to the final part of our three-part blog series, “A Retail Success Story.” In the previous two posts, we delved into how we helped our partners uncover previously hidden insights in their data and the obstacles we faced along the way. Now, we’ll be discussing what the analytic process led to: the development, operationalisation and growth of a new loyalty program.
Having followed KPIs (Key Performance Indicators) from offline (brick-and-mortar) stores for a few months, our partners started to notice a few things about their customers:
- each outlet had a group of regular customers that visited a few times per week.
- a regular customer in one outlet would also visit multiple outlets within the Himalayan Java ecosystem.
- some food and bakery items on offer at Himalayan Java sold as much as, if not more than, the coffee items.
While Himalayan Java had been operating a stamp-card based loyalty program for quite some time, the program, was implemented only in select outlets, was applicable only in the outlet it was first acquired from, and covered only coffee-based items from the menu.
The insight: the existing loyalty program needed an upgrade to better serve a changed customer dynamic.
The question: what might a new loyalty program look like?
Since we already had a good idea of customer purchase patterns, within a few weeks, we were able to come up with suggestions and within months, our partners rolled out a new loyalty program as a part of their mobile application.
Going by the numbers, within less than 8 months of operations, monthly gross sales from the app have grown by a factor of 71.4% since its launch in Q2 2022, and the 3 month retention rate is at 34.5%, a good margin above the average app user retention over 3 months, typically at 27.2%.
With data to support their decisions, our partners were able to upgrade their loyalty program quickly and effectively. As we continue to help Himalayan Java connect the dots between their data into decisions, who knows what else we might discover?
Thank you for reading through this three part series. I hope by now you’ve gained a good idea of why its important to understand, measure and interpret your KPIs, and what that might lead to for your business. If you too would like to partner with us to connect the dots between data and decisions, checkout the Vitals service.
Keep Data. Decisions. Repeat-ing