Case Study: Evaluating the Impact of a Loyalty Program

The Challenge

A national quick-serve chain wanted to evaluate the benefit of their loyalty and eClub programs. They wanted to know:

• Do members that join the eClub perform better than non-members?
• What is the impact of joining loyalty?

The Solution

With Personica’s Guest Analytics, they modeled the business impact of loyalty members, eClub members, and non-members to create three comparable groups. Guest Analytics collected the data available to each group and analyzed the impact of each on the business.

The Results

The analysis showed slightly lower average check size for eClub members, but their additional visits throughout the year resulted in a larger contribution to the business.

Additionally, the model allowed the client to compare the observed traffic of loyalty members to the model of pre-loyalty sales. The model showed a significant average cumulative lift of $7.48 for the year for loyalty members and a steady decrease in lift from the join date until it flattens out near 200 days later.

Moving forward

The client now targets marketing communication to loyalty members approaching the 200 day mark to extend the tail and drive greater value from the loyalty program.