Published: August 20, 2024 | Reading Time: 5 mins
Categories: Case Study, Insights, Loyalty
This case study documents how Kognitiv partnered with a leading specialty retail chain of home decor and furnishings to transform their loyalty program, achieving industry-leading results and significant improvements in customer engagement and spending.
| Metric | Result |
|---|---|
| Consumer Ranking | #1 Home Décor Retail loyalty program post-relaunch |
| Member AOV vs Non-Members | 34% higher |
| Annual Redemption Increase | 81% increase |
| Spend Growth in New Program | 47% growth |
| Program Enrollment (Year 1) | Exceeded goals by 11% |
| Sales Attribution to Loyalty | 91% of sales |
Our client is a leading specialty retail chain of home decor and furnishings with over 400 stores across the United States, offering a wide range of stylish and affordable products for every room in the home, including furniture, wall decor, lighting, gifts, and seasonal items.
The retailer's existing rewards program fell short of delivering the personalized experience they desired. The current program offered limited benefits and incentives and struggled to effectively foster customer loyalty and stimulate increased spending among its members. With long purchase cycles, the brand wanted to keep consumers engaged and reduce churn while growing its customer base.
Kognitiv implemented a comprehensive three-phase approach to transform the retailer's loyalty program:
During a comprehensive 5-month consulting engagement, Kognitiv assessed current program performance, implemented predictive customer lifecycle tracking, and conducted detailed behavioral segmentation. A thorough customer experience audit, competitive assessments, and market research provided insights into customer expectations and opportunities for program evolution.
Key Activities:
Kognitiv identified gaps and opportunities in the existing customer journeys to incentivize and engage customers. Leveraging insights found, we generated ideal customer experiences across channels personalized to the different customer profiles to drive desired customer behavior and keep customers excited and engaged in the program.
Key Activities:
With Kognitiv Inspire, this client successfully relaunched its loyalty program, driving significant improvements in customer engagement and spending while securing its position as a leader in the home décor retail space. We supported a comprehensive program redesign with diverse rewards and incentives, launching ideal customer experiences in the market and ensuring a seamless transition to the new program.
Key Activities:
#1 Home Décor Retail loyalty program ranked by consumers post-relaunch
Program enrollment exceeded goals by 11% in the first year post-relaunch
91% of sales are attributed to the loyalty program
81% increase in redemption from members annually
Kognitiv is redefining loyalty with its AI-native outcome-based technology. Our award-winning loyalty software and a suite of cross-channel intelligence and personalization products enable brands to deliver hyper-personalized experiences, predict and optimize customer engagement in real time, and achieve measurable results.
It's time to move beyond transactions and earn customers' lifetime loyalty. Discover how reimagining your loyalty strategy and customer engagement with AI can foster deeper connections and drive long-term success.
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