Shell Updates Loyalty Program Strategy
In 2013, Shell, one of the biggest oil and gas companies was not doing so well. Shell’s loyalty program and brand preference had fallen by 6%, while its global CRM program in nine markets was disjointed. At the time more than half of the new members joining Shells loyalty program disengaging within the first 3 months. (Source: Wunderman’s Case Study Download the PDF)
Shell needed to revamp its CRM communications program so that consumers would see the value of the brand and loyalty program and most importantly, buy their gas from Shell.
To better understand their customer base, Shell looked at qualitative and quantitative research alongside membership base data analysis to identify motivations for choosing Shell, frustrations and future opportunities.
3 Top Business Challenges
- Fuel choice had become price commoditized.
- Low customer engagement.
- CRM communications were not engaging.
Updated Loyalty Program Strategy
- Use a CRM strategy to engage members at key moments in their customer journey
- Maximize value members receive by reinforcing the value proposition of earn and get rewarded for what you already do.
The Customer’s Loyalty Journey
Shell’s communication goal was to maximize engagement at key moments and potential stress points along the customer lifecycle. During a 1 year campaign period over 116 million customer contacts were made across 9 global markets to 17 million loyalty program members via DM, email, SMS and mobile app channels.
Right Message to the Right Customer at the Right Time
Impact of Updated Loyalty Program
Shell boosted its brand preference, while that of many rivals decreased, and achieved its best-ever ROI. The program generated record return, driving customers to visit Shell twice as often (vs. previous benchmark), generating £13.5m incremental revenue. A 107% improvement on the previous year, at 124% ROI.
Who is Customer Insight Group?
Customer Insight Group is a Colorado-based loyalty marketing agency leading the way in helping companies engage, keep and grow profitable customer relationships.
A lot of companies are testing different loyalty program strategies, the more promising and successful ones seem to share some common characteristics. Learn the seven lessons from the innovators in the Making Loyalty Pay: 7 Proven Strategies presentation.