Revitalizing Loyalty Program & Customer Engagement

This loyalty program transformation helped a major retailer grow revenue from AED 4.5M to 189M. Through deep data analysis, we restructured the program to boost customer retention, personalization, and digital engagement. Enhanced customer segmentation, personalized marketing, and digital engagement, driving higher retention and sales mix from loyalty members.

Challenge: The company’s loyalty program, a significant pre-COVID investment, had seen a drastic decline in engagement and revenue. Loyalty members’ contribution to sales was not maximized, and customer retention strategies lacked personalization.

Approach: Leveraging deep data analysis, the loyalty program restructured to optimize revenue and customer lifetime value. This included:

Conducting data-driven segmentation to personalize marketing strategies.

Developing targeted campaigns for new enrollments, first-time spenders, and high-value customers.

Enhancing in-store messaging and email communications for better engagement.

Introducing new loyalty-based incentives and experiential rewards to drive higher conversions.

Collaborating with IT and external vendors to develop an app for the loyalty program, ensuring seamless integration with the CRM.

Impact:

Revenue from loyalty members grew from 4.5 million AED in 2021 to 189~ million AED in 2024.

Sales mix from loyalty members increased from 46% in 2022 → 52% in 2023 → 58% in 2024.

Transaction mix grew from 28% in 2022 → 31% in 2023 → 48% in 2024.

Enrollment conversion increased from 13% in 2021 → 21% in 2024.

Strengthened customer engagement through segmented marketing strategies, shopping frequency & CRM automation.