The loyalty market had been in flux since August 2016. A prevalence of new Airpoints Reward partners included Mercury Energy and Tower; Countdown‘s OneCard joined forces with AA Smartfuel; New World Clubcard went nationwide; and to top it off, Genesis had signed on to replace Contact with Fly Buys.
Contact was breaking up with Fly Buys after 16 years and taking away rewards from hundreds of thousands of customers. Asking customers to make a conscious switching decision to AA Smartfuel was going to be challenging.
In a category with little differentiation, high churn and increasing fatigue from an overuse of retail or loyalty offers, the challenge was to convince people that the simple ‘No Brainer’ campaign with AA Smartfuel rewards was so good, it hardly warranted second thought.
An orchestrated campaign utilising personalised customer offers and a simple above the line message achieved the objectives. Launching first with a social and PR strategy followed quickly by an intensive media and one-to-one campaign that aimed to own share of voice with Contact customers.
The big idea was to share an offer with Kiwis that was so good and so easy to take up, that it hardly warranted a seconds thought- it was a no brainer.
Within 3 months churn had been reduced to its lowest rate ever. This reduced churn was seen for the Contact customers previously earning Fly Buys and for the entire Contact residential customer book, equating to the mitigation of several million in potential annual profit loss. Compare this to a leading competitor whose churn was up.
In addition, the campaign achieved its 12-month AA Smartfuel Plan sign-up goal within this 3-month period and attracted 210% more new customers than for the previous corresponding period.