The company is a global group of petrochemical and energy companies with operations in over 70 countries. It has over 47,000 retail service stations and serves over 1 million commercial customers, along with 33 million retail customers, on a daily basis.
THE CHALLENGES
The company had an existing Loyalty program through which their customers accumulated loyalty points each time they purchased fuel or from the retail stores located in their fuel stations. As customers accumulated these reward points, they redeemed them while buying fuel, products from their retail stores or items from affiliate partners.
The marketing team in Poland wanted to run a new digital campaign that would encourage customers to redeem their loyalty points. They planned to periodically send emails and notifications on the company’s mobile application to their loyalty program customers. This pilot program would run for a period of 3 months.
The marketing division did not have insights into how the loyalty program customers would respond to this new marketing campaign. The customers who were part of this Loyalty program were split into 3 categories based on the total points that they had accumulated.
The company needed an analytics partner to analyse the effectiveness of this new marketing campaign, while also defining new customer segments that would help them understand consumer behaviour and redemption patterns. Based on impact of this marketing campaign in Poland, the company planned to roll out similar campaigns in other European countries.
THE SOLUTION
The team from Prescience Decision Solutions identified all the loyalty program customers that would be part of this new marketing campaign. The overall effectiveness of this program would be measured by comparing the lift in redemption pre and post campaign.
To give a more accurate view of customer behaviour, the segmentation of the overall loyalty program customer base was done on the basis of their redemption activity. The following new customer segments were created
- Active loyalty program customers that only redeemed points prior to the new marketing campaign
- Previously active loyalty program customers that redeemed points after the new marketing campaign
- Active loyalty program customers that redeemed points both prior to and after, the new marketing campaign
- Previously inactive loyalty program customers that began redeeming points only after the new marketing campaign
With these newly created customer segments, our team was able to provide comprehensive insights into the redemption patterns after the pilot program was launched. During this analysis, our team also found that the number of loyalty customers that were redeeming points on partner sites was much higher than previously expected. The team also created a Test group and a Control group to perform A/B testing for this campaign.
The different technologies that were used in this project included,
- Microsoft SQL
- Microsoft Power BI
- Microsoft Excel
THE IMPACT
The findings of the detailed campaign analytics proved that the pilot program in Poland was highly successful. With the new categorization of their loyalty program customer base, the company was able to derive new insights into the redemption patterns after the campaign was launched. Based on the results and learnings of this pilot program, the company launched similar marketing campaigns in other European countries.
Prescience Team
