Loyalty Program Solution:
Creating personalized & connected customer experiences for higher customer retention

Header_Schöffel-1
Salesforce Logo - Salesforce Sales Cloud CRM beratung und implementierung agentur SUNZINET

Schöffel Loyalty Program Project

According to R. Markey (HBR, 2020), companies with strong loyalty marketing programs can grow revenues 2.5 times faster than their competitors and generate 100-400% higher returns. This research highlights the high opportunity costs of undervaluing existing customers.  

Schöffel therefore took the chance not to overlook this potential and sought to strengthen customer loyalty, enhance sales, and position itself as a trusted brand.  We successfully collaborated with Schöffel to implement a loyalty program using Salesforce, enhancing customer engagement and retention.

Solution Objectives

Foster stronger customer relationships

The primary objectives behind developing the loyalty program solution for Schöffel were to:

  • Improve data and knowledge about customers.
  • Enhance brand positioning and establish Schöffel as a trusted brand.
  • Modernize the company’s image and increase revenue.
  • Utilize cross-selling potential and boost customer loyalty.
  • Increase customer lifetime value.

With the information above, we aimed to develop a system that offers personalized rewards and exclusive benefits based on user engagement and their position in the customer lifecycle journey.

The goal of this program was to foster stronger customer relationships. This initiative not only boosts repeat purchases but also provides valuable customer insights for more targeted marketing efforts.

Figures in different colors with a question mark as sign for fragmented knowledge.

The Challenge

Siloed data made it hard to see customer relationships across the full lifecycle

They recognized the following challenges that were hindering the implementation of the loyalty program development: 

  1. Lack of valid end-customer reporting capabilities: Without detailed reporting, the company struggled to gain insights into customer behavior and preferences, limiting their ability to make informed decisions. 
  2. Fragmented knowledge about end customers: Incomplete customer knowledge led to missed opportunities for personalized engagement and effective targeting. 
  3. Absence of customer data in the marketing cloud: With customer data limited to newsletter subscribers, Schöffel could not leverage comprehensive marketing strategies. 
  4. Inability to segment customer communication: The lack of segmented communication hindered cross-selling opportunities, reducing potential revenue streams. 
  5. Disjointed information across various systems: The need to consolidate information in the Sales Cloud created inefficiencies and slowed down decision-making processes. 

These challenges collectively prevented Schöffel from fully understanding and engaging their customers, thereby impeding their ability to grow and strengthen their market position. 

Our Approach

To tackle these challenges, SUNZINET GmbH employed a comprehensive approach: 

  • Employees having a discussion as symbol for Goal Setting & Value Mapping

    In initial workshops, measurable goals were defined to align the loyalty program with Schöffel’s business strategy. Key goals included improving customer knowledge, enhancing brand positioning, increasing digital sales, and strengthening customer loyalty.

  • Workshop symbolizing the development of a KPI concept

    A detailed KPI concept was created to assess the program’s success data-driven. Example KPIs included end-customer reporting for product development, increasing owned digital share, and reducing return rates.

  • Person working on a computer as symbol for developing a MVP

    To achieve a quick go-live, a Minimum Viable Product (MVP) was developed, which allowed end customers to earn and redeem points with purchases. This MVP served as the foundation for a more comprehensive loyalty platform. The loyalty logic was implemented within the Sales Cloud and connected with the Marketing Cloud to leverage Salesforce solutions fully. Salescloud was used as the central system for the logic of the loyalty program. 

  • Two colleagues working on computer as symbol for Integration of Vue.js and Salesforce API

    The loyalty program was integrated into the shop using a Vue.js component for the front end, connected to the Salesforce API. This setup allows for: 

    • Independent Development: The use of Vue.js allows for flexible and modular development, making it easier to update and maintain the loyalty program without disrupting other parts of the system. 
    • Real-Time Information Exchange: The connection to the Salesforce API ensures that customer data and interactions are updated in real time, providing accurate and timely information for both customers and the company.
    • Seamless Connectivity: The integration ensures that all components of the loyalty program work together smoothly, enhancing the overall user experience and operational efficiency.
Employees having a discussion as symbol for Goal Setting & Value Mapping
Workshop symbolizing the development of a KPI concept
Person working on a computer as symbol for developing a MVP
Two colleagues working on computer as symbol for Integration of Vue.js and Salesforce API
Computer with e-mails as symbol image for Email Assets in the Loyalty Program

Deep-Dive: Email Assets for the Loyalty Program

As part of the comprehensive loyalty program, we integrated various types of mailings to enhance customer engagement and provide continuous value to Schöffel's customers. The loyalty program now includes: 

  • Tiered Mailings: Emails that provide customers with updates on their current loyalty status and the benefits available at their tier level. 
  • Points Mailings: Emails that inform customers about their current points balance and how they can redeem points for rewards. 
  • Welcome Mailings: Emails to new members of the loyalty program, outlining the benefits and how to start earning and redeeming points. 
  • Benefit-Focused Mailings: Emails that highlight the exclusive rewards and perks available to loyalty program members. 
  • Preference Center: An email preference centre where customers can customize their email preferences and choose the types of communications they wish to receive. 
  • Email Engagement: Continuous monitoring of email engagement to ensure communications are effective and relevant. This includes tracking open rates, click-through rates, and customer feedback to optimize future mailings. 

This multi-faceted approach to email integration ensures that customers are consistently informed and engaged with the loyalty program, leading to higher participation and satisfaction. 

Our Results

Schöffel now creates personalized and connected customer experiences for higher customer retention

The loyalty program has already shown initial successes and benefits for Schöffel: 

  • A Big Number of Orders Had Points Redemption:  
    This demonstrates the program's effectiveness in encouraging repeat purchases and increasing overall revenue. 
  • Efficient Reporting to Make Informed Decisions:  
    The system enables easy and quick reporting, enhancing operational efficiency. This means Schöffel can swiftly analyze performance and make informed decisions. 
  • The Technology Landscape of Schöffel Now Allows Targeted Marketing:  
    Segmented customer communication allows for more effective and personalized marketing efforts. This leads to improved customer satisfaction and loyalty, further strengthening Schöffel's market position. 
Different areas of the Loyalty Program: Accumulate, Exchange, Purchase, Growth

KPIs that are under our watch

In addition to the initial success indicators, we are closely monitoring several important Key Performance Indicator (KPIs) to measure the ongoing impact of the loyalty program: 

  • Higher Shopping Cart Value: Tracking the increase in average order value as customers redeem points and take advantage of loyalty rewards. 
  • Increased Number of Orders: Monitoring the rise in order frequency, indicating greater customer engagement and repeat purchases. 
  • Reduction of Returns: Evaluating the decrease in return rates, reflecting improved customer satisfaction and purchase confidence. 

These KPIs provide a comprehensive view of the program's effectiveness and its contribution to Schöffel's revenue. They also allow us to review the Loyalty Program Solution and optimize it for accelerated growth. 

In a Nutshell

While the program is in its early stages (silent go-live), it has already shown promise in encouraging customer engagement and forging stronger brand connections. 

The synchronized data in the Sales Cloud empowers Schöffel to make insightful, data-driven decisions and craft personalized marketing strategies.  The innovative use of Salesforce solutions and a strategic approach to loyalty program implementation stand out as key successes of this project.

The MVP not only establishes a scalable platform but also paves the way for future growth and deeper customer relationships.

Bring your business to the next level with a loyalty program solution!

Let's talk in person! Simply fill out the form and we'll get back to you within 24 hours on working days. 

In the first call, we will get to know you and your challenges and identify your next steps towards digital growth.

Lukas Kamm - CRM & Digital Marketing - SUNZINET

Lukas Kamm

Business Development

kamm.lukas@sunzinet.com

+49 221 / 355 009 0