Analyzing Customer Loyalty by Segment

July 1, 2021

Analyzing Customer Loyalty by Segment

Discover how retailers are using TruRating to improve their business with better customer insights.

75%

Response Rate

Loyalty

Segementation

Value

Key Driver for Loyalty

How do customer loyalty segments impact behaviour?

The Challenge

While the grocery sector has long been awash with data on product performance and customer purchasing behaviour, customer feedback on the overall in-store experience and their individual perceptions has been difficult to track and action due to low engagement with traditional tools like ticket-based receipt surveys. While loyalty cards are able to track customers’ visits and shopping missions and can be used to create manageable customer segments they don’t always provide an answer on why certain customers aren’t more loyal or how decisions on assortment, price or promotions are impacting overall perceptions that then explain the behavior.

How We Helped

Much like most grocery chains, Longo’s segment their customer base on the recency, frequency and value of each customer’s spend and visits over a set number of weeks. By matching these loyalty segments to the responses captured at the point of payment and then aggregating at the segment level we were able to profile responses and spot differences by segment in a way that still protected each responders rights to anonymity and privacy. We reviewed customer perceptions across the key areas of customer service, product quality, overall experience and value. This revealed that while all customer segments received the same great levels of customer service and similar views on the quality of the product range the biggest differences between segments were with their perceptions of the value from their basket. The analysis showed that the biggest opportunity to drive increased loyalty from the least committed customers was to focus on improving their value perception.

Educating and altering customers’ value perception

The Impact

While it is easy at first to consider value perception as being just about price it is incredibly important to Longo’s to not sacrifice on their product quality promise to customers or the partnerships they foster with their suppliers and manufacturers. Longo’s is committed to meeting the needs of their full customer base and views their private label program and freshly prepared foods as a way to deliver something unique and of high quality to its guests. Understanding the role of these programs and their promotion by staff in educating and altering customers’ value perception and thereby growing lifetime loyalty is the next step in this ongoing journey.

75%

Response Rate

Loyalty

Segementation

Value

Key Driver for Loyalty

“Having a view of our entire customer base (not just loyalty members) is truly a revelation – only TruRating provides that.”

“The granular nature of the data that TruRating provides is hugely valuable for anyone trying to understand what’s driving specific behaviors in your stores.”

“Having a view of our entire customer base (not just loyalty members) is truly a revelation – only TruRating provides that.”

“The granular nature of the data that TruRating provides is hugely valuable for anyone trying to understand what’s driving specific behaviors in your stores.”

Bio

Longo’s has built its name as a grocer that delivers a high quality customer experience with a premium product range focussed on fresh and local produce. The brand has long been associated with innovation and excellence and as one of the leaders in the busy North American grocery industry. When Longo’s engaged TruRating, they wanted to gain a better understanding of their customers, with a particular interest in the key drivers behind increasing lifetime loyalty and meeting the needs of their full customer base.

Name

Longo’s

Region

Canada

Company Size

Medium

Industry

Grocer

Website

www.longos.com

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