DIA: Digitising loyalty in the retail industry

Starting point

Constant loss of physical coupons that ultimately discouraged participation in DIA’s loyalty program.

Solution

Promote the digitalisation of the program by encouraging the download of the mobile app as a means of storing transactions.

What we did

Strategy
Creativity
Performance
Media

In the retail industry, and specifically the food branch, the emergence of new competitors is an everyday occurrence. We often see different companies using countless price strategies to draw customers and retain them.

In turn, a saturation of messages offering deals and discounts has led to an information overload that is impossible for consumers to absorb. On top of this “bombardment,” companies are making efforts to draw clients to their own loyalty programs, offering even more deals and discounts. This makes their differential advantages unclear.

Within this context, DIA Spain’s loyalty program, ClubDIA, has 18 million subscribed users who shop at the over 3,000 stores located around the country and through the online platform dia.es. ClubDIA members receive discounts through a code printed on their purchase receipt, with information on the rewards they have obtained for their next purchase. This forced consumers to keep their physical purchase receipts to enjoy discounts on future purchases. The latest studies DIA conducted with its clients, as well as the Customer Service reports from social media that Good Rebels drew up, indicated that one of the most noteworthy points of improvement was that customers constantly lost their physical coupons and could not enjoy their customer discounts.

“This transformation mainly aimed to improve the user experience and adapt to its customers’ new consumption habits”.

Based on this exercise in actively listening to its customers, DIA made the decision to boost its ClubDIA App and bring all members of its loyalty program out of a physical and into a digital setting. This transformation mainly aimed to improve the user experience and adapt to its customers’ new consumption habits.

Customer membership and digital transformation drive

In order to reach and resolve the challenge raised by DIA, in addition to attracting new 100% digital customers, we activated a paid-media campaign on social media. We placed our focus on Facebook and Instagram, as these platforms provided us with sufficiently profound segmentation capacity and a user mass large enough to consider them when conducting membership drives. With this drive, we sought to increase downloads of the ClubDIA application to phones by redirecting users directly to the App Store or Google Play (depending on their device) in a simple and straightforward fashion.

An increase in app installations with a 52% reduction in cost per download.

To make this possible, SDK (software development kits) had to be installed beforehand. These are required for single-click direct-download campaigns on social media. The kits are code fragments that must be included in the ClubDIA app, providing total traceability of download conversion. This provided us with additional information on how the campaign was playing out, so we could make decisions to optimise it. Moreover, this is the only way to be certain that users impacted by the campaign ads are truly downloading the app.

Once the SDKs to measure results were installed, it was time to define the audience we were targeting with our ads on different platforms. Based on consumer data provided by DIA, we prepared different segments based on interest clusters, demographics (age and gender), and especially the mobile device they used. One of the aspects we considered in the base situation was specifically targeting users with Android operating-system devices, given the small mass of users who used this system with the app.

The campaign worked on two objectives at the same time: On one hand, the designs and the Unique Selling Proposition that drew new members to the loyalty club. On the other, sharing the main advantage for current members: centralising all their coupons and discounts in one same device with personalised notifications, thus making them easier to use.

Success translates to repetition

The new service offered by the app provided the customer with added value, which was a central idea of the campaign message’s focus. Moreover, the defined strategy led to over 15,000 downloads in one month, with a total of 3,081,869 users reached and a 2.67 impact frequency. The cost of installation was 52% lower than industry estimates provided in relevance reports for the period during which the campaign was conducted.

We rated our success in terms of Return of Assets (ROAS), considering the economic valuation DIA made of each download (new or transformed customers). By optimising the campaigns, we obtained a great deal of valuable insights, such as age ranges more inclined to download, gender, devices and creatives with the best performance. Thanks to all this work, social media campaigns bore the best results in the digital setting and DIA decided to conduct more campaigns in following months. The majority of the budget earmarked for other channels was diverted into these campaigns.

In short, thanks to an audience study with personalised messages for each cluster, almost daily optimisation work for each campaign and an exhaustive study of results, we obtained both qualitative and quantitative results that far exceeded the client’s expectations.

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