ProLogic has helped numerous grocery retailers improve their performance through the use of shopper loyalty programs. Below are several examples of retailers who have achieved gains in sales and margins with ProLogic’s loyalty marketing platform. Click on the name of each retailer below to learn more about their success with ProLogic loyalty programs.
SHOP 'n SAVE is an 83-store chain located in the Pittsburgh, PA metro area. They have been operating with the ProLogic loyalty platform since 2002.Business Challenge/Opportunity
Major storms and flooding caused several of SHOP ‘n SAVE’s competitors to close for an extended period of time. The competitors’ customers needed a place to shop while their primary store was closed and began shopping at nearby SHOP ‘n SAVE stores. The challenge was to identify and retain these newly acquired shoppers.Loyalty-Marketing Solution
With the help of ProLogic, SHOP 'n SAVE immediately began identifying new shoppers to their stores in the area of the flooding damage. A comprehensive strategy was developed to communicate to these shoppers with a multi-channel approach. Communication via ProLogic’s in-lane printers was an inexpensive channel and the chain also opted to send direct mail pieces to shoppers’ homes. The efforts helped to drive shopper engagement and profitable shopping behavior among the targeted shopper segment.Promotional Tactic
With the assistance of their on-site ProLogic Account Director, SHOP 'n SAVE set up and executed a series of promotions, including continuities and bounce-back offers, designed to engage the new shoppers.
- Using in-lane printed communications, ProLogic targeted all shoppers that were missing mailing address information with an offer to win a $25 gift certificate just for providing contact information.
- ProLogic also helped the stores identify the locations of new shoppers and then follow up with a mail piece that was sent to the new shoppers as well as the surrounding area that was affected.
- The mail piece offered the targeted households a short-term continuity promotion designed to reward them with increasing cash saving every time they spent $100 in a shopping trip.
- The mail piece also contained a fuel reward offer powered by Prologic and was followed up with several bounce-back offers for each subsequent visit. These “your choice” bounce-back offers allowed the shopper to choose an item that they preferred to receive a deep discount.
The ProLogic Account Director provided an analysis to help SHOP 'n SAVE determine the effectiveness of the new customer engagement initiative. New shopper retention rates; member sales and transactions; Top Shopper household counts; and targeted shopper penetration were measured.
- New shopper retention rates increased significantly compared to the stores previous performance against this metric.
- 16% of the targeted households became and remained Top Shoppers after the promotion period ended.
- The percentage of households with contact information increased from 67% to 82%.
- Total household counts increased by 18.1%; Member Transactions increased by 16.0%; and Member sales were up 12.1%.
- Member household counts increased in each of the targeted zip codes.
SHOP 'n SAVE accomplished its goal of increasing its loyal member count as well as adding new Top Shoppers and improving overall shopper retention. The store continues to see strong year over year growth in sales and improved shopper loyalty metrics.
New York retailer achieves impressive basket size increases with top shoppers
PSK Foodtown Supermarkets, a 13-store chain located in New York City, has grown its revenues and margins in 13 out of 14 years since implementing ProLogic’s loyalty solution in 2002. The chain relies heavily on its Club Card program, with shoppers using the card for over 92% of their purchases.
PSK Foodtown store managers are evaluated based on the growth of top shoppers in each store, and the loyalty program has been highly effective in thwarting competitive openings from big-box discounters and national chains. PSK Foodtown attributes much of its overall success to its loyalty program and believes the program has delivered margin growth far above its costs.
Another Foodtown chain achieving benefits with ProLogic’s loyalty program is Estevez Foodtown, an 8-store chain located in New York and New Jersey. Estevez Foodown has increased top shopper sales consistently, including a 1.5% increase top shopper sales in Q3 2015.
Estevez Foodtown’s loyalty marketing programs have also resulted in consistent increases in average basket size, which increased 3% in 2014. The retailer believes that gaining a better understanding of top shopper behavior with ProLogic’s metrics has really made a positive impact on its business.
Oklahoma retail chain reaches top shoppers with SMS messaging with ProLogic's "Meet and Greet" service
Homeland Stores, a 49-store grocery chain headquartered in Oklahoma City, increased top shoppers by 23% during the first year after launching its loyalty program. Homeland also improved its profitability as sales to top shoppers increased and sales to less profitable shoppers decreased.
Homeland is piloting Prologic’s Top Shopper Meet and Greet program, which sends a SMS text message to the Store Manager whenever a top shopper is in the checkout lane. This service provides the Store Managers and their staff the opportunity get to know their top shoppers and to recognize them as important customers.
When faced with closing a store and potentially losing loyal customers, Homeland set up special incentives for its members to shop at other nearby Homeland stores. Sixteen weeks after the store closed, Homeland has successfully maintained 75% of the store’s sales and 50% of its shoppers.
single store owner loves the targeting capabilities and hands-on service from prologic
Sentry Delafield is a single-store operator in Delafield, WI. Owner Michelle Harrington states that ProLogic’s shopper loyalty program enables Sentry to develop more personalized relationships with the 15,000 shoppers that visit weekly. As a store owner, Michelle appreciates being able to track her customers’ buying habits, as well as the ability to create customized offers for her top shoppers.
Our partnership with ProLogic has allowed Delafield Sentry the opportunity to deepen our relationship with our customers that has been mutually beneficial to both. The program allows us to customize how we want to reward our customers. ProLogic was extremely professional and provided great customer service throughout the process. The program has been extremely successful and best of all, our customers love the program! Michelle Harrington
Kentucky retailer takes their loyalty program to the next level with ProLogic
ProLogic’s newest customer is Remke Markets, an 11-store chain serving customers in Cincinnati and northern Kentucky. Previously, Remke had an in-house loyalty program but is now benefiting from improved reporting and promotions capability using the ProLogic platform. Remke’s executive team was very pleased with ProLogic’s performance in managing a smooth transition to the new loyalty program.
Retailer leverages the power of data and email to reward their best customers
Valu Market, a 6-store chain in Kentucky, has achieved strong adoption of its loyalty program by its shoppers. The retailer recently completed an email promotion which offered top shoppers the ability to earn free items with increased purchases. The campaign accomplished its goals with strong participation and redemption, further strengthening Valu Market’s relationships with its top shoppers.
Lowes Foods is a 75-store, Winston-Salem, NC-based chain with stores in the Carolinas and Virginia. with the ProLogic loyalty platform since 2002.Business Challenge/Opportunity
Faced with increased competitive pressure from large regional chains such as Publix and Kroger-owned Harris Teeter, Lowes is challenged with identifying and retaining their most loyal shoppers to keep their business with Lowes and away from the competition.Loyalty-Marketing Solution
With the help of ProLogic shopper data, Lowes understands that more than 50% of their store sales come from the top 10% of their shopper base. Therefore maintaining the shoppers that fall into this segment is critical when facing competitive pressure. A decision was made to implement a proactive strategy to identify and target these top shoppers in advance of an anticipated competitive store grand opening.Promotional Tactic
With the assistance of their on-site ProLogic Account Director, Lowes set up and executed a targeted promotion to provide Top Shoppers with a “surprise and delight” gift as they checked out at any competitor-impacted store. The ProLogic Account Director pulled a list of Top Shoppers and created a promotion that issued an in-lane printed message when one of the targeted shoppers scanned their Lowes Fresh Rewards card at checkout. The printed message was an alert to the cashier that this shopper was to be awarded with a holiday poinsettia potted flower. When cashiers saw this message, they knew to politely engage the shopper while the on-duty Store Manager brought a fresh poinsettia flower to present to the shopper. This allowed the Manager to personally thank the shopper for his/her loyal patronage and wish them a happy holiday season.Promotion Analysis/Measures
After the promotion ended, The ProLogic Account Director provided an analysis to help Lowes determine the effectiveness of the “surprise & delight” tactic. In doing so, the retention rates and spending of the shoppers that were targeted for this promotion were compared to those from a representative control group of shoppers from non-participating Lowes stores. Following were the key findings of this analysis:
- Shoppers who received the poinsettia gift had a lower defection rate (those with no shopping in the 12 weeks post-promotion) than the control.
- Shoppers who received the poinsettia gift had a more favorable variance of downward vs. upward migration. While 37.6% of the control shoppers moved down to a lower loyal level during the post-promotion period, this figure was only 31.5% for the targeted shoppers.
- While post-promotion period spending (January – March) for both the control and the target shoppers decreased from the base (holiday-period), the decline was significantly less among the targeted shoppers (-1.2% vs. -6.4%).
The overall result yielded a positive ROI and helped Lowes retain more of their Top Shoppers in face of a competitor opening.
japanese grocers are reaping the benefits of ProLogic's robust rewards platform
Japan Green Stamps operated a loyalty program for retailers in Japan similar to the S&H Green Stamps program used in the US. The program grew to over 22,000 stores and was originally based on paper stamps. More recently, Japan Green Stamps has moved to digital forms of distributing and redeeming Green Stamps.
Japan Green Stamps licensed ProLogic’s technology in 2010 to further modernize their system and deliver the benefits of ProLogic’s solution. The first store in Japan using the ProLogic solution was launched in 2012. Since that time, Japan Green Stamps has installed 148 stores with the ProLogic solution and expects to exceed 200 stores in 2016. Customers like the convenience of using their loyalty card to collect points, while retailers like the ability to use points as an incentive for shoppers to purchase items in their stores.