2020 Bronze Best Customer Retention or Loyalty Programme | DMA

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2020 Bronze Best Customer Retention or Loyalty Programme

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Agency: MRM London

Client: Macmillan Cancer Support

Campaign Name: A vital piece in the cancer puzzle

Campaign Overview

Clawing in more spend

Pets at Home already had a popular loyalty programme, Very Important Pets (VIP), but wanted to enhance rewards for members - and their furry friends.

Strategy

By the end of 2018 the VIP club was already a huge success with 7.5 million members and more than 24.2 million pets: 50% of the total UK figure.

The strategy was not to instigate radical change but scale-up and optimise an already popular and engaging loyalty proposition to achieve meaningful and substantial growth from insight gained.

Customer insight told the team that members wanted to receive even more personalised and relevant information and offers. It also revealed members who accessed multiple categories, channels and services had a higher retention rate.

The focus was on utilising personalisation to create and grow these desirable and profitable behaviours.

Creativity

The VIP CRM programme provides Lifelines points. Customers enjoy highly relevant and personalised communications across mail, email and the app. More than 178,000 permutations of direct mail are possible in the reward mailer alone.

Every element of personalisation is tested and optimised versus control to prove the value to customers:

  • Personalised imagery by pet type
  • Specific breed type and pet name where given
  • Even voucher background colour and size are tested
  • Pet-relevant content, offering education or humour

The VIP app was also relaunched.

Results

CRM has driven more than £34m in incremental sales measured versus control: 5% of group revenue. There has also been a 10% increase in retention, with 1.1 million more members added in a year and 27.1 million pets registered overall.

Web sales increased by 38% year on year. The company has also donated £2m to members’ charities of choice.

The Team

Pets at Home - Jessica Rose, Head of CRM - Karl Atkinson, Head of Business Insights - Martin Squires, Director of Advanced Analytics

Go Inspire - Andy Wood, Chairman - Claire Caffrey, Head of Analysis - Markas Brindza, Senior Marketing Analyst - Jessica Wang, Director of Consultancy - John Corke, Marketing Analyst - Mark Brown, Account Director