Growth Case Study:
Just because customers are spending with you doesn't mean they're yours: How to leverage a customer lifecycle marketing to increase growth

Achieve sustainable incremental growth by converting passive buyers into primary loyal customers.

Mission:

50% of this International B2B and B2C firm's customers were trading with them, but viewing them as their secondary or back-up supplier rather than their primary source. (NB: Identified by combining smart data mining; qualitative and quantitative research.) The mission was to target this group and convert as many to "primary customers - I will only go somewhere else if you don't have it in stock" or "super primary - even if you don't have it, I will wait!" Increase growth through building and deploying effective loyalty programs.

Challenge

Customers have inertia and habits that are no different from any other firm. When we surveyed the buying experience as a secondary or back-up source, they reported it was better than their primary supplier. However, it didn't change their buying habit. Habits can be systemic. For example, there can be rules baked into ERP systems or human-led systems established over a long time, i.e. "John always keeps his weekly orders on this piece of paper in his drawer, with his first, second and third choice sources.") Overcoming this type of inertia is challenging. We had to find ways for our client to alter the customer's behaviours in their processes (break their inertia) so that we can deliver the value they have already fed back works.

Solution

Working with our regional partners and the client, we conceived and rolled out a comprehensive spend-and-earn programme. The campaign launched in 13 countries in 13 languages.

Result

Out of the 30,000 B2B customers targeted under this loyalty programme; 7,500 stated after six months, they had become more loyal to our client's business as a result of the campaign. Average order values increased by 4% during the scheme and average transaction frequency increased by 13%. Overall, 34% of the customers targeted stated they spent more with our client, and the same amount shared they were less likely to lapse trading.

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