A beautiful lapsed goldmine
RSVP Customer Retention Silver
Farmers Trading Company
Ben Goodale, Lou Kivell, Amy Morrison, Drew Ayers, Mari Pettersson, Justin Biddle
Catherine Webster, Deb Summers, Rahul Abhyankar
Farmers has spent the last year conducting a huge review of every aspect of their ten year old Beauty Club, from developing a dynamic new segmentation model to widening the rewards offering to include women’s clothing, footwear and accessories.
Segmenting the Beauty Club base showed that out of a total base of 590,000 members, only 296,000 had used their card in the last 12 months. Given that Beauty Club members now spend an average of $324 in the Beauty department annually, every ‘active’ member is a goldmine.
The ‘inactive’ members presented the perfect reactivation opportunity. But understanding the drivers that would convince them to re-engage with a Club they hadn’t thought about in over a year was the challenge.
Several tests were conducted over November and February to a select number of inactive Beauty Club members, utlising multiple pack variations to test response motivators and understand what would make them reactivate (and perhaps understand why they lapsed in the first place).
The November campaign delivered an average response rate of just over 10%, exceeding the set objectives. Applying the insights gleaned from that campaign achieved an average response rate in February of 20% - double the objectives and almost four times that of the standard reactivation rate of 5.5%.
Excitingly, customers kept on shopping after the 4 week offer period, spending an average of over $200 each over the 3 months following. The reactivation campaign catapulted respondents in the segmentation model from ‘lapsed’ to ‘Gold’ Beauty Club members.