|Blue Nun grows sales through consumer loyalty programme|
|Written by Gemma McKenna|
|Friday, 31 August 2012 12:35|
Blue Nun has grown sales by 4.65% through the use of a shopper loyalty programme rather than resorting to offering discounts.
The brand, which made its name in the 1970s, underwent a £750,000 global relaunch last year, and was keen to attract new consumers and previous fans.
It teamed up with Hive, a company which specialises in FMCG promotions, to see how it could incentivise customers.
It developed codes for labels, which shoppers using reward programme Coinks used to claim 150 points to spend after an email marketing campaign, all of which boosted sales by 4.65%. After surveying customers results showed that 48% hadn’t bought Blue Nun prior to the promotion; 79% purchased more Blue Nun as a result and 68% would continue to buy it once the promotion had ended.
Aside from boosting sales, Blue Nun was able to build its own database from customer responses.
Armin Wagner, sales director at Blue Nun, said: “We’ve gained valuable insight on how our consumers behave and how they can be incentivised. We now have a basis for developing on-going engagement directly with our consumers and valuable learnings to inform and improve future promotions.”
Nick Evans, head of customer insight at Hive, added: “Slashing prices is an easy tactic to fall into – but there are alternative ways for brands to increase sales or encourage trial without deep discounting.
“These types of ‘intelligent promotion’, increasingly being run by leading FMCG grocery brands, are enabling them to target tailored incentives directly to consumers. This lets them build insight on those consumers while achieving their commercial objectives at the same time.”