Loyalty Scheme Analysis

Performed detailed analysis of a town centre loyalty card scheme to provide insights on how to optimise the scheme:

Method:

• I went into the back end of the software and extracted a large data set with over 10,000 individual transactions relating to 2,500 card holders.  To examine this I used a piece of software called WPS that allowed to me write bespoke code to group, analyse and ultimately export the results into Excel where I created a series of charts and tables.

High Level Insights

• Quality of customer contact details analysed for 2,500 loyalty card holders and the number of missing fields quantified, opt-in marketing flags
• Monthly number of new loyalty cards issued was compared to loyalty scheme marketing activity
• Time since last loyalty card transaction analysis showed that found 1/4 of cards had been used within a month and 30% had never been used
• Number of shops the loyalty cards were used revealed that 2/3 of customers had only used the card in one store

Shop Level Insights

• One store had 40% of total card spend and 3 others each had over 15% of the total spend
• This was highly correlated with the number of visits although the average spend varied significantly between outlets
• Variation in voucher redemptions showed that some stores were getting higher redemption rates than others
• 7 of the 9 stores had one or more customers who had 40 or more spend transactions over a 2 year period