How Nextyn Delivered Consumer Insights to Optimize Loyalty Programs & Increase Repeat Purchases

Executive Summary

A leading retail chain was experiencing a decline in repeat purchases and low engagement in its customer loyalty program. The company needed to:

• Understand why customers were lapsing and switching to competitors.
• Evaluate the effectiveness of its current loyalty program.
• Identify incentives that would increase repeat purchases and brand loyalty.

To address these challenges, the retailer partnered with Nextyn’s Research & Consulting team. Over a three-month engagement, Nextyn executed:

• B2C surveys targeting existing, lapsed, and competitor customers.
• Data-driven segmentation to assess different buyer personas.
• Analysis of loyalty program engagement & effectiveness.
• Strategic recommendations to optimize rewards, personalization, and customer experience.

Outcome: The retailer increased customer retention by 40% and boosted average order value (AOV) by 22%.

Client Profile & Challenges

Client Profile:

• Industry: Retail & E-Commerce
• Project Focus: Customer Loyalty & Repeat Purchase Behavior
• Target Audience: Existing customers, lapsed buyers, competitor shoppers

Challenges Faced by the Retail Chain:

• Declining Customer Retention & Repeat Purchases: Shoppers were switching to competitors with more attractive loyalty benefits.
• Low Engagement in the Loyalty Program: Customers did not find the current rewards compelling.
• Lack of Personalization in Marketing & Promotions: The retailer’s discounts & offers were too generic.
• Limited Insights on Why Customers Churned: No structured mechanism to gather feedback from lapsed customers.

Without data-driven consumer insights, the retailer risked losing market share, failing to retain high-value customers, and running ineffective loyalty programs.

Nextyn’s Solution

B2C Customer Behavior & Loyalty Program Survey Execution

Nextyn designed and executed a multi-segmented consumer survey targeting:

• Active loyalty members to understand satisfaction levels & program usage.
• Lapsed customers to identify pain points and reasons for churn.
• Competitor shoppers to benchmark what attracted them to alternative brands.

Survey topics included:

• Purchase frequency & factors influencing brand loyalty.
• Preferred rewards & incentive structures.
• Satisfaction with personalization in marketing & promotions.
• Factors influencing store vs. online shopping preferences.

Customer Segmentation & Buying Behavior Analysis

• Segmented customers into high-value buyers, occasional shoppers, and lapsed customers.
• Analyzed generational & regional differences in loyalty engagement.
• Mapped spending habits to identify cross-selling opportunities.

Loyalty Program Optimization Strategy

• Assessed competitors’ loyalty structures (cashback vs. points vs. exclusive perks).
• Developed a tiered loyalty system rewarding high-value customers more effectively.
• Recommended gamification features to improve customer engagement.

Personalization & Customer Engagement Enhancements

• Developed AI-driven personalized promotions based on past purchase behavior.
• Suggested targeted email & SMS campaigns to re-engage lapsed customers.
• Introduced experiential rewards (exclusive events, VIP access) to increase emotional connection to the brand.

Impact & Results

• 40% Increase in Customer Retention: Data-driven loyalty improvements kept more customers engaged.
• 22% Growth in Average Order Value (AOV): Personalized incentives led to higher spending per transaction.
• 3x Increase in Loyalty Program Engagement: New reward structures motivated customers to earn & redeem points.
• Higher ROI on Marketing Spend: Targeted outreach to lapsed customers reduced churn and increased return visits.

By leveraging Nextyn’s B2C survey expertise & consumer behavior analysis, the retail chain successfully optimized its loyalty program and increased repeat purchases.

Why Nextyn?

• Deep Expertise in Retail Consumer Insights & Loyalty Research
• Ability to Execute Targeted Surveys for Customer Segmentation
• Data-Driven Strategies for Personalization & Customer Retention
• Proven Success in Retail Loyalty Program Optimization

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