Rewarding the retail customer while generating extra revenue

Date of publication: October 1, 2015

Abstract:

The loyalty programme of Carrefour has been running for several years. It consists of giving loyalty points to card users when their basket has a specific spend value. Carrefour wanted to know until which point you can motivate the customer to spend more, while maximising the feeling of generosity and minimising the promo cost. To help Carrefour with this (i.e. finding the ideal balance between reward and cost), solutions-2 combined big data (individual customer data on a big scale) with research methods. Carrefour allowed solutions-2 to use 2M of its customers, and its promo budget, in a live test environment. They implemented a complex conjoint design, in which market research data was combined with real spend data. It clearly showed that big data + market research are both needed to get the best value out of both.

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