How Asda Achieved a 500% Increase in Click-through Engagement with its Rewards  Programme –  Harvey Hennah, CRM Manager, Asda

How Asda Achieved a 500% Increase in Click-through Engagement with its Rewards  Programme –  Harvey Hennah, CRM Manager, Asda

Reading time: 5 minutes approximately

Rewards in Retail

In the retail industry, loyalty schemes are quite ubiquitous. How many brands can truly say that their offers are personalised and make customers feel rewarded or understood? Probably not as many as one might think. In fact, a lot of customers feel almost misunderstood. However, some offers they receive make them feel like they’re getting true value. What goes into designing such customer-centric offers?

Source: Asda

Harvey Hennah, CRM Manager, Asda, one of Britain’s leading retailers, emphasises the pivotal role of CRM in helping businesses understand their customers and make them feel genuinely rewarded and understood leading to higher customer engagement and retention. In this article, he shares how they leveraged data to enhance the value of Asda’s rewards programme acquisition. 

Data-driven Rewards Programme Sees Click-through Engagement Skyrocket 5x

Source: Moveable Ink & Massive Rocket
The Objective: Accurate targeting for Asda’s rewards programme

In a bid to enhance customer engagement and maximise the value of the rewards programme, Asda aimed to identify and target specific customers within their grocery database who exhibited the potential to become extra rewards customers. Recognising the mutually beneficial nature of this relationship, Asda sought to leverage Data Science to profile and target the right audience.

The Process: Identifying ideal candidates for the extra rewards programme

To achieve this objective, Asda implemented a meticulous process. They began by profiling their database and identifying customers who seemed to be the ideal candidates for the extra rewards programme. The team then constructed a data model that scrutinised customers’ shopping behaviour over the last 90 days, imposing strict criteria for inclusion. The model factored in minimum and maximum values for customer spending, ensuring that targeted customers were within normal parameters.

Source: Moveable Ink

The model delved into customers’ purchases, aligning them with missions and star products, the primary mechanics driving rewards. It calculated the cumulative value earned by customers across their recent transactions, forming the basis for the main creative message. This personalised approach aimed to convey the tangible benefits customers had accrued over a defined period.

The Outcome: Heightened engagement and tangible and sustained financial impact

Comparing this dynamic acquisition campaign to previous static activities, Asda witnessed a remarkable 500% increase in click-through engagement. To validate the impact, a control group was implemented, revealing a 26% uplift in average order value among those who received the communication. Additionally, the campaign boasted a 137% increase in conversion rates.

Beyond immediate financial gains, a customer lifetime value (CLTV) analysis conducted within a 30-day attribution window post-campaign revealed that customers who received the acquisition communication were 31% more valuable than those in the control group. This comprehensive approach demonstrated not only heightened engagement but also tangible and sustained financial impacts, showcasing the transformative power of strategic data utilisation in customer targeting.

Next Steps: Automating and streamlining all data models within CRM

Harvey acknowledges the dual nature of data, recognising it as both a powerful ally and a potential challenge. Asda’s current focus is on diligently automating and streamlining all data models within the CRM team’s purview. The aim is to transition from the current ad hoc approach to a more efficient and self-serving model for targeted campaigns. This strategic shift is anticipated to not only alleviate the strain on data resources but also empower the CRM team to gain real-time insights into customer responses, challenges, and preferences. The end goal is to utilise these automated data models to promptly address customer pain points as they emerge.

Maximising the Value of a Rewards Programme

Similar to the approach adopted by Asda, here is how marketers can enhance customer engagement and maximize the value of a rewards programme:

Source: www.which.co.uk/news/article/asda-rolls-out-loyalty-reward-scheme-nationwide-should-you-sign-up-aAuci4x5FYC6
Personalised Rewards

Tailor rewards based on individual customer preferences, purchase history, and behaviour to create a more personalised and meaningful experience. For example, analyse customer purchase history to identify frequently bought items or preferred product categories. Create personalised reward tiers or exclusive discounts on items that align with individual customer preferences. This enhances customer satisfaction by delivering rewards that resonate with their unique tastes and preferences.

Strategic Communication

Implement targeted and timely communication to keep customers informed about exclusive offers, promotions, and personalised rewards, fostering a sense of exclusivity. For instance, segment customers based on their engagement history and preferences. Send targeted emails or push notifications with exclusive offers tailored to each customer segment. This increases the likelihood of customer interaction and participation in the rewards programme by delivering relevant and timely communications.

Multi-Channel Engagement
Source: www.asdamediapartnership.com/digital-media/engagement-package

Utilise various channels, such as email, mobile apps, and social media, to engage customers consistently and provide seamless interactions with the rewards programme. For example, integrating the rewards programme into a brand’s mobile app. Send push notifications to app users, alerting them about new rewards or time-sensitive offers. This enhances the user experience by providing a convenient and accessible platform for customers to engage with the rewards programme. 

Data Analytics

Leverage customer data to understand behaviours, preferences, and patterns, allowing for targeted promotions, personalised offers, and continuous programme optimisation. For example, analyse data to identify peak shopping times and popular product categories. Launch targeted promotions or limited-time offers during peak hours or on popular products. This maximises programme engagement by aligning promotions with customer behaviours and preferences, leading to increased participation and satisfaction.  

Feedback Mechanisms

Establish feedback loops to gather insights directly from customers, understanding their satisfaction levels, preferences, and suggestions for programme enhancements, ensuring continuous improvement. Implementing a post-purchase survey to gather customer feedback, for instance. Encourage customers to provide feedback on their rewards programme experience and preferences through surveys. Feedback loops enable continuous improvement by directly incorporating customer suggestions, enhancing the overall effectiveness and appeal of the rewards programme.  

About Asda

Source: newdigitalage.co/general/havas-london-and-spark-foundry-collaborate-on-gamified-ad-campaign-for-asda-rewards/

Founded in the 1960s in Yorkshire, Asda is one of Britain’s leading retailers. Dedicated Asda staff serve customers from its network of stores and online services, including supercentres, superstores, supermarkets, Living stores, petrol filling stations and depots across the UK. More than 18 million people shop with Asda every week and 98% of UK homes are served by www.asda.com.

Harvey’s Career Journey

Harvey, a seasoned marketing professional, embarked on his career journey after completing his university education. His initial experiences in various marketing roles paved the way for a pivotal opportunity at Sky Betting and Gaming, a prominent online gambling and sportsbook company in the UK. During his tenure, Harvey delved into CRM, discovering the immense potential of data within this field. The dynamic environment at Sky Betting and Gaming shaped his understanding of the fundamental concepts of CRM that became the guiding principles throughout his career. 

Harvey’s professional trajectory also included roles with Moda in Pelle, Hairburst LTD and Jaywing that solidified his expertise in CRM. In his current role at Asda, Harvey assumes a leadership position in the CRM domain, overseeing the acquisition and onboarding phase of the customer lifecycle. His responsibilities extend to shaping the onboarding journey for new registrations and strategically acquiring customers for various business units, such as the rewards programme and George, Asda’s retail brand specialising in fashion, home, and outdoor products.

Harvey’s dedication to customer-centric strategies underscores his commitment to fostering meaningful and mutually beneficial relationships throughout his accomplished career.

Final Thoughts

When asked about the key takeaways from his experience, this is what Harvey said:

In marketing, data isn’t just a cliche; it’s the essence of every action. While the idea of one-to-one personalisation is often discussed, only a few brands genuinely embody it. As CRM marketers, striving for this level of understanding should be our daily pursuit—the gold standard. It’s about placing data at the core of everything we do, something absolutely non-negotiable in marketing. Data is not just a component; it’s the foundation of impactful, progressive conversations that lead to tangible outcomes. In essence, success will surely follow when data is the driving force in marketing. 

How to get started? 

Get in touch if you would like to know more

Get in touch →

Vandana Jayakumar
Vandana Jayakumar

Journalist & Marketing Technology Editor at Massive Rocket. Massive Rocket helps companies use data to understand their customers, build beautiful experiences and automate communications across channels to generate predictable growth.

Related Posts