Loyalty programs in the food sector

region
Europe
industry
FMCG
22%
Increase in average order value
20%
Increase in purchase frequency
16%
Increase in the number of new loyalty program members

Challenge

A beverage company noticed that consumers were buying their products less frequently and often choosing other brands, attracted by promotions. So they decided to create a new loyalty program.

Action

  1. Segmentation of contacts based on their preferences
    Consumers were divided into dynamic segments such as:
    • carbonated beverage lovers
    • parents buying beverages with less sugar
    • people choosing limited edition products
  2. Preparation of a loyalty program
    The beverage manufacturer created a loyalty program. Consumers could collect points and exchange them for prizes and discount coupons for their favorite products. People with higher loyalty thresholds (e.g., “gold customers”) received additional, exclusive benefits.
  3. Sending personalized messages
    The company launched a series of automated notifications about the loyalty program, with advertisements for products tailored to each segment and individual customer preferences.
  4. Personalized discount coupons
    Program members received personalized messages with discount coupons for products they regularly purchased.
  5. Emails reminding customers to redeem their points
    Regular emails informed customers about their accumulated points and reminded them of the minimum number of points required to redeem specific rewards.

Results

  • The average order value increased by 22%. Consumers selected more products in order to accumulate a specific number of points faster and redeem them for rewards.
  • The frequency of consumer purchases increased by 20% because the program encouraged them to visit the chain's stores regularly.
  • The number of new loyalty program members increased by 16% within a year of implementation.
  • Consumer retention increased by 15%.
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