Supported a programme with over 300M+ members in introducing redeemable loyalty points
Challenge
With over 300+ million global members, a global apparel brand had one of the world's largest loyalty programmes. However, it was not economically optimised, which meant that the programme lacked robust and effective mechanisms for measuring ROI. As a result, it was difficult to identify which areas to invest their loyalty budget in order to get the best financial returns.
Furthermore, the programme was fragmented due to differences in points allocations, redemptions, terms, and marketing between countries. This negatively affected the customer experience, as members found that they couldn't earn or redeem outside their home country of membership.
Solutions
Tecsa helped the global apparel brand optimise the economics of redemption as the programmes globally transitioned from tier points and status rewards to spendable points. The client loyalty team was supported in designing the financial envelope and business case for points redemption based on global benchmarks and the specifics of their business.
Loyalty financial reporting was established to enable regional offices to provide statements compatible with GAAP. Additionally, accurate forecasting of breakage and redemption was provided, supporting reporting and management.
Country and global financial models linked to client data warehouses were developed to account for detailed segment-level behavior while remaining easy to refresh and update.
Furthermore, a partnership strategy was developed to enhance value for the brand and programme members.
Results
ENHANCED REPORTING & REDEMPTION MECHANISMS
Drive the global apparel brand’s programme success due to increased accuracy and visibility of costs and benefits for the programme.
ADVANCED SCENARIO TESTING
Empowers the global apparel brand’s membership team to better engage with local businesses and innovate the customer proposition.
Consultants & Partners Involved In This Case
At Tecsa, we carefully select the best talent from our diverse team of global experts to match the unique complexity and challenges of each project
ANTHONY MORRIS
BRENDAN O’DONOVAN
KATIE LEE
ANTHONY MORRIS
Anthony has extensive experience in loyalty programme design and data-driven business transformation. He has helped shape some of the world’s largest loyalty programmes and has a worked globally with a wide range of retailers and consumer-facing businesses.
His expertise in analytics and CRM was gained at leading organisations including Dixons Carphone where he pioneered the use of decision sciences and AI to optimise all aspects of the customer proposition.
Anthony started his career at Booz Allen working with a variety of clients on strategic and operational issues, specializing in due diligence and turnaround of FMCGs for private equity clients.
Anthony featured in dataIQ’s 100 most influential people in data.
BRENDAN O’DONOVAN
Brendan brings deep expertise in customer strategy and innovation, with a focus on data and analytics driven businesses spanning retail, CPG, financial services, travel and recruitment.
After starting his career in a leading strategy consultancy, Brendan joined Loyalty Management Group (Nectar) in 2005, delivering key improvements in member acquisition and reward liability management. Post acquisition, as VP of Strategy for AIMIA’s EMEA region, he helped to build new loyalty coalitions, grow the ISS retail analytics business, and launch several consumer-facing apps. Most recently, he has led the modernisation of digital marketing and customer analytics capability for a FTSE 250 business serving over 15m customers across 33 countries.
KATIE LEE
Katie is Chief Financial Officer the Tecsa Group Limited.
She is a Chartered Accountant who has held a number of finance roles in the private sector across Retail and Healthcare.
Following her studies at Oxford University, Katie started her career by qualifying as a Chartered Accountant in the audit department of PricewaterhouseCoopers.
Katie has diverse experience in finance roles and has experience in mergers and acquisitions, finance system integration and private equity buy out along with a strong technical understanding.
