THE CLIENT: A leading national discount retailer teamed with Cardlytics for some expert help in navigating the treacherous landscape of the American retailing sector during the closing months of 2010.
THE STRATEGY: With its market share threatened by the increasingly competitive promotional environment and margins slowly being eaten away by rising commodity prices, the national retailer sought Cardlytics' help as it launched two new strategic initiatives:
In order to align results with goals, Cardlytics decided to optimize campaign performance by testing various offers on specific customer segments.
THE RESULTS:
Recent Customers Bank customers who had made a purchase at the retailer in the past 60 days were presented with one of two offers ('10% cash back' or '20% cash back') Lapsed Customers Bank customers who had not made a purchase at the retailer in the past 60 days were presented with one of two offers ('10% cash back' or '20% cash back')
THE CONCLUSION: Due to the tremendously higher ROI numbers, the '10% cash back' offers were chosen for both recent and lapsed customers going forward.
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September - December 2010
Recent Customers: 10% cash back and 20% cash back Lapsed Customers: 10% cash back and 20% cash back
Redemption Rate: 10% cash back: 3.5% 20% cash back: 3.9% ROI 10% cash back: 5.0X 20% cash back: 3.3X