Intermarché
Developing a strategic concept for a loyalty program for the Intermarché supermarket chain using the Opening Report methodology.
Redefining Loyalty: A Strategic Blueprint for Intermarché’s Customer Loyalty
Intermarché is a French chain of grocery and industrial supermarkets run by independent entrepreneurs, the Musketeers (Musketeers Group). Currently, Intermarché stores have outlets in four European countries. There are 230 points of sales in Poland.
For the European grocery industry, 2023 was a challenging year. Inflation led consumers to tighten their belts, leading to a drop in volume and significant downtrading. As a result, industry growth was significantly below food price inflation. Food price inflation in Europe was 12.8 percent in 2023,1 while grocery sales grew at a rate of only 8.6 percent.2 Discounters and private labels benefited from this market environment and were yet again the winners of the year.
The private label share increased substantially by 1.8 percentage points, to 38.0 percent of sales in 2023 from 36.2 in 2022. Discounters gained another 0.8 percentage points in market share on average, and at least 1.0 percentage point in Belgium, Germany, Poland, Sweden, and the United Kingdom. The overall market share of supermarkets remained stable at 37.2 percent in Europe. Supermarkets in Italy, the Netherlands, Portugal, and Spain found strategies to succeed despite high price pressure and even achieved market share increases of 0.5 to 0.8 percentage points.
The initial challenge was to conduct an in-depth analysis of the current state, prepare the necessary factual base, and draw key conclusions to determine the direction for developing the loyalty program. Our starting point was the business objectives that the program was intended to address. After extensive analysis by our data science team, we demonstrated the validity of the loyalty program, including its positive impact on sales, margin growth, and cost reduction.
Market Analysis for Highly Competitive and Low Margin Retail Market
We began by studying consumer expectations, focusing on preferred benefits. We analyzed trends in loyalty programs not only in Poland but globally, reviewing nearly 80 retail programs worldwide. We examined loyalty program communications across 48 different chains in 8 markets and identified key differentiators among the leaders. We also conducted an analysis of Intermarché's activities in relation to market conditions and consumer expectations.
Customer Data Analysis with Organizational Readiness Check
In-depth data analysis was a crucial and extensive part of the project. This allowed us to prepare effectively for implementation and avoid potential pitfalls. We explored various fields such as store segmentation, customer behavior analysis, and RFM analysis. Based on this data, we developed appropriate mechanics designed to appeal to as much of the customer base as possible. At this stage, estimating the business model was essential to ensure the project's profitability. Additionally, analyzing the organization's technological capabilities and team competencies helped us map out the technical requirements and secure the necessary resources for effective implementation in the shortest possible time.
Delivering Insights and Recommendations for Effective Loyalty Program
Building an effective loyalty program revolves around three key areas: recruitment (customer base), engagement (understanding customer behavior), and activity (driving sales growth). We provided a recommendation for the program's mechanics, complete with detailed justifications for their selection. Additionally, we offered the client examples of creative program executions.
Workshop on New Loyalty Implementations
To estimate possible performance scenarios and establish initial recruitment KPIs, we used transactional data and market benchmarks to approximate the program's potential. The successful realization of the program depends on consistent, methodical operational work. We conducted a series of workshops to educate the client on the importance of staff involvement in the recruitment process and the benefits of actively managing the program.
“Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.”
Digital Director Lagardère Travel Retail
I highly recommend Loyalty Point as a strategic business partner. Whether analyzing industry dynamics or addressing complex challenges, their team consistently delivers practical and well-founded solutions.
Senior Marketing Manager
Vision Express
Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.
Digital Director
Lagardère Travel Retail
We are very pleased with the results of our cooperation. We especially appreciate the multitasking nature of the team - despite implementing several projects at the same time, complex promotional mechanisms were always ready on time.
Head of Loyalty & CRM
Decathlon
Loyalty Point consistently supports us in navigating various challenges, offering constant, professional and reliable support and tailored solutions that align perfectly with our business needs and capabilities.
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E-commerce, Marketing and Omnichannel Director
Rainbow
Using a proven methodology, we analyzed Intermarché's target audience and verified key assumptions. We also audited the existing discount loyalty program offered by the brand. By leveraging transactional data and simulating customer profiles, we significantly enhanced the underlying mechanism of the loyalty program. The result is a set of specific recommendations for the future direction of loyalty development, taking into account the unique characteristics and values of the Intermarché brand.
“Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.”
Digital Director Lagardère Travel Retail
I highly recommend Loyalty Point as a strategic business partner. Whether analyzing industry dynamics or addressing complex challenges, their team consistently delivers practical and well-founded solutions.
Senior Marketing Manager
Vision Express
Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.
Digital Director
Lagardère Travel Retail
We are very pleased with the results of our cooperation. We especially appreciate the multitasking nature of the team - despite implementing several projects at the same time, complex promotional mechanisms were always ready on time.
Head of Loyalty & CRM
Decathlon
Loyalty Point consistently supports us in navigating various challenges, offering constant, professional and reliable support and tailored solutions that align perfectly with our business needs and capabilities.
E-commerce, Marketing and Omnichannel Director
Rainbow
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