How to win back customer and prepare for the challenges? How to build brand loyalty? ☛ See presentation from our webinar | More: https://pwc.to/36AoCaA

1. Bringing your
customers back into
the stores with
winning loyalty driven
solutions

2. PwC x Antavo
• Partner at PwC
• Head of Revenue
Management CEE
• Loyalty Strategies Leader
Joint PwC x Antavo webinar
2
• VP Strategy & Insight
at Antavo
• Performance Analytics
• Loyalty Program Design
• Strategy & Operations Team
PwC CEE
• Retail & Consumer sector
• Retail formats & innovations
Maciej
Kroenke
Jörn
Roegler
Adam
Rusiecki

3. PwC x Antavo
Situation as the dust settles
– from old habits to the new normal
Occasions
& needs
Products,
channels,
vendors
From offline to online
From impulse to planned
From experimentation to necessity
From social to individual
Shift between channels
Decreased number of shopping
occasions
Increased price sensitivity
Shift between categories
Leading multi-brand
fashion retailer saw 40%
sales drop in mainstream
brands while, at the same
time growing its economy
banner by 60-70%
Leading global sports
retailer saw a sudden shift
in sales from team to
performance sports (-60%
to + 240%)

4. PwC x Antavo
New challenges & threats emerge
4
Must act to:
1. Retain new Clients
2. Satisfy loyals at
risk of churn
Must act to:
1. Bring Customers
back to stores
2. Quickly improve
topline
Large online grocery
retailer saw exponential
growth in orders but with
dangerously falling
retention and sudden
churn of loyal customers
New challenges for some…
• inflow of new, ad hoc, nomadic Clients resulting
in heavy traffic
• results in significant strain on operations
and service quality
• that in turn negatively impacts loyal customers
…and a sudden threat to others
• client outflow (due to locked stores, non-aligned channel or
offer structure)
• reduced basket size (due to increased price sensitivity)

5. PwC x Antavo
Retailers likely to react with aggressive and expensive actions
5
Approach likely to be
challenging from the
financial health perspective
Aggressive use of increasingly expensive channels aimed at
Customer acquisition
Channel
Aggressive promotional policy (both in frequency
and depth) aimed at Customer conversion
Tactics

6. PwC x Antavo
Loyalty driven solutions can serve commercial objectives
in a more efficient way
6
• Creates engagement that in turn
drives traffic
• Allows to win customers back
at almost no expense
• New clients are obtained less
expensively
• Perceived value exceeds actual
costs
• Benefit redemption is delayed
& linked to additional purchases
• Becomes an additional touchpoint
• Improves accuracy of all
commercial actions thanks
to gathered data
…influences customers’
behavior…
Are less expensive than
currently used discounts…
…and allow for conducting
targeted activities
Delivers more effective spend
Allows for better cashflow management

7. PwC x Antavo
Objective
• Drive urgency
• Ignite engagement
Objective
• Develop habits
Objective
• Share of wallet -
Increase frequency
& basket size
Objective
• Reenroll
• Defend top
customers
Objective
• Build awareness,
call for action
• Reach & Advocacy
Recruit Convert Engage Activate Win-back
MVP functionalities for rapid launch!
Designing a loyalty driven ecosystem follows customer lifecycle
7
Tactics
• Dedicated welcome
promo
• Employees as
ambassadors
• Incentivize advocacy
Tactics
• Instant rewards
• Easy reward ramp-up
curve
• Limited access or
„stretch” driven promo
(FOMO)
Tactics
• Targeted offering
• Self-gamification
(challenges)
• Targeted content
• Bundles + NBO
• CX measures and fun
factors
Tactics
• Personalization
(e.g. shopping list
reminders)
• Inspiration
& guidance
• Social sharing
Tactics
• Point expiry
• Top-tier benefits
• Dedicated promos
(inspiration + once in
a lifetime occasion)

8. PwC x Antavo
Agile Development
Predictive Decisioning
Engine
Rapid Test Execution
Strong technological fundamentals are key
8
Improvement
Capabilities
Foundations
for Performance
Scalability Security Reliability
Focus on technology
that drives the
customer experience
Marketing
Automation
Unified
Data
Frontend
Layer
Loyalty
Engine

9. PwC x Antavo
Traditional Loyalty programmes Customer activation & engagement hubs
Shifting role of loyalty driven solutions
9
• Generic - point and card based
• limited functionalities with complicated
redemption rules
• managed as a separate marketing activity
with little commercial focus
• Personalized – mobile app based
• merge multiple functionalities
(get inspired, shop, share)
• managed as a marketing
& technology centre of excellence

10. PwC x Antavo
Impact on communication
Impact on revenue management
Impact on service delivery
Impact on store format
Forward looking solutions with impact on the whole
commercial strategy
10
Customer
activation
&
engagement
hub
• free, fully controlled touchpoint
• environment for continued improvement
in targeting
• space for innovation testing & early
adoption
• digital delivery of store services
• shift from servicing transactions
to customer support and consultative
sales
• dedicated services & check-out
options
• custom in-store merchandising
(aligned with dedicated campaign)
• customized pricing & promo
• channel for stock management
• positive spillover to general
revenue management
(high quality data & insight)

11. PwC x Antavo
Care for awareness
Understand your
client and develop the
program as you go
Start simple
Base the logic
on existing habits
Acting fast and delivering simple solutions…
11
Trivial but key reason for clients not entering is low awareness – not only of
benefits but also of the solution’s existence
Customers need to be able to easily understand the rules – progression and
rewards have to be clear
Constant focus on client behavior analytics will guide further development
Base the mechanics on existing behavior and extra bonuses for bravery
(purchase of new product, generating content for you)
Leading QSR
restaurant chain
decided to launch its
loyalty solution without
any tiering for the first
12 months – this was a
conscious decision to
first understand
members and then
start differentiating

12. PwC x Antavo
…and making good on promises as key to success
12
Frequency based
or value based logic
Encourage customers
to redeem
Conscious rewarding
Fun factor and
gamification are
crucial
Should be focused on boosting either frequency or ticket value – combining the
two in one mechanics may result in cannibalization
Be conscious of what you offer – it does not have to be the star product –
Consider rewards which won’t reduce your margin, e.g. partnerships, events
Customers who redeem are more satisfied – redemption is a simple way of
creating value – if redemption generates significant costs and you try to
complicate the process it is a warning sign
Anything that gamifies the experience of using the app keeps customers engaged
and interested – fun features have to be grounded in existing customers’ habits
Highest perceived
value is often from
limited offers &
products not
discounts, costing little
to nothing
>50% of majority
of programmes
ROI comes from
customers redeeming
rewards – even when
accounting for the cost
of these rewards

13. PwC x Antavo
Retailers who do not invest in loyalty driven solutions risk
• Knowing less about customers and loosing valuable insights in rapidly evolving environment
• Having to rely on less effective channels for activation & engagement
• Having lower effectiveness across mass oriented commercial levers
The time for retailers to act is now
13
• Customers are open to loyalty programs and retailers’ apps
• Acceptance of direct communication channels has significantly increased
• Personalisation and activation related to stage of a lifecycle is crucial in „war on traffic”
• Technology is here and is ready to enable the transformation
with an increasing number of retailers entering or redesigning their offering

14. Don’t hesitate to get in touch
Maciej Kroenke
maciej.kroenke@pwc.com
+48 502 380 595
Jörn Roegler
jorn.roegler@antavo.com
+44 7736 202226
Adam Rusiecki
adam.rusiecki@pwc.com
+48 519 507 372
For more insights visit:
pwc.pl
antavo.com