BWS: take two

Our research led the business to pause a planned digital vehicle registration notice rollout that would have shifted cost to other channels and left customers worse off.

Summary

BWS introduced Appy Deals, its exclusive discount program to encourage the download and use of their app. The program was hitting volume targets but missing its strategic purpose: capturing first-party customer data.

The app had a large, growing user base and hundreds of millions of dollars in sales, yet nearly three quarters of transactions were completed that captured no customer data.

Research revealed a weak value proposition combined with usage friction pushed staff and customers around the app.

We took the sign-up journey into concept design, testing three onboarding approaches and sizing a business case with an estimated upside in the low millions of dollars a year.

Project Snapshot

Organisation: BWS (Endeavour Group)

My role: Service Designer in a squad with senior UX and product owner, leading the store and staff research, the service blueprint, synthesising into a leadership presentation and report

Timeframe: an onboarding and EDR linking deep dive in August 2025, then store and staff research and synthesis through to November 2025

Methods: In-store observation and interviews, document analysis, RFM segmentation, usage and voice of customer data, competitor analysis, current state journey and blueprint, concept wireframing and user testing

Scale: hundreds of thousands of monthly active users, strong year-on-year order growth, hundreds of millions of dollars in sales to date and a registered database in the millions

The Challenge

The program was growing, but not in the way the business needed. Sign-up was required to power personalisation and improve ranging and retention for customers. Nearly three quarters of transactions were bypassed this step. The program was hitting volume targets while missing the strategic intent.

How might we remove the blockers preventing the adoption and continual use of Appy Deals?

The stakes were clear in the numbers. Over 90% of '“new to app” customers never went on to register. Registration was the whole point, so this was the gap to close.

Approach

The goal was to understand why through a service lens that looks at people, processes, places, products, partners and performance together.

We combined six sources:

  • In-store observation and interviews with team members across six BWS stores in NSW

  • Document analysis of close to 40 earlier research, strategy and launch documents

  • RFM (recency, frequency, monetary) segmentation data

  • Program usage data

  • Customer feedback on Appy Deals

  • Competitor analysis of best practice

Testing the in-store reality against Appy Deals’ own guiding principles would show where the program worked as designed and where it did not.

Behavioural science gave us the diagnostic: BJ Fogg's model, applied through the Honeycomb Strategy, says active engagement needs motivation, ability and a prompt together.

To start fast, the squad condensed what would normally be a four-week discovery into three days. We collated and analysed those documents, which covered customer experience, technical challenges and performance, so we would not repeat issues the business already knew about. We then moved into wireframing and user feedback on the sign-up journey alongside the store research, with a stakeholder workshop planned to ideate on the opportunities.

What we learned

Motivation and ability were failing. While the frontline team was already doing the prompting. Five insights shaped the recommendation.

The current journey showed where the data was leaking

Mapping the in-store journey across three stages: sign-up, checkout and loyalty about half of transactions used the POS button, roughly a quarter used Guest mode and only around one in eight were linked to Everyday Rewards (EDR).

Customers got the discount, and the business got no customer data. Fewer than a third of app users had linked EDR and over 90% of new-to-app customers did not register after a POS button redemption.

Customers were being asked to do too much, too late

Sign-up asked for 5+ steps (download, sign up, find the right barcode, scan, link EDR), and by Hick's Law every extra step loses about 20% of users. Customers at the counter are already preparing to leave.

Poor reception, slow load times of several seconds, older phones and logged-out apps compounded it. Older customers often had no smartphone or refused another app.

Store teams were improvising without support

Team members were good at prompting customers, but had no scripts or training beyond a launch cheat sheet, so each store invented its own spiel.

Targets conflicted with queue pressure and customer goodwill, so staff reached for the POS button, especially during Friday and Saturday peaks. POS prompts were also sometimes wrong, which eroded staff confidence and customer trust.

The “why” was missing

One store manager summed it up: customers whip out the barcode to get the deal and see the app as an unnecessary thing. The app also confused customers about its link to Everyday Rewards, with many assuming their EDR card should already give app pricing.

The discount was the "what", but nothing told customers the “why”, which is that BWS can recognise them and make offers relevant to them.

Sign-up was losing customers before they linked

Inside the app, more than half of customers who started registering dropped off before reaching the link Everyday Rewards button.

The funnel lost people at every step: account creation, optional account details (the biggest single drop) and the handover to Everyday Rewards. Roughly one in seven people who started registering never finished at all.

Two problems sat around the funnel. The app showed several barcodes with unclear roles (Appy Deals, a wallet card and a physical card), so customers did not know which to scan.

Poor in-store connectivity also stopped customers onboarding or linking in store, and the offline fallback was a generic barcode that captured no customer data.

Nearly half of baskets and revenue came through the POS button, even though customers with a linked Everyday Rewards account spent more per order and ordered more often than guests.

Future state

Hypothesis: If we can collect a single piece of contact data at the POS, we can follow up with motivated customers, lift registered monthly active users and grow a database that powers personalisation.

The ideal experience is customers choosing Appy Deals over Everyday Rewards as their default for best value, finding it convenient, fast and simple, and loving it enough to come back.

Four principles guided the recommendations:

Start with the customer's reality, not our ideal state: meet people where they are, using physical cards, digital wallet integration, two-way linking with Everyday Rewards, and registering or redeeming outside the app.

Make it simpler, with more ways to join: fewer steps, plus options such as adding an Appy Deals card to a phone wallet and scanning it like a rewards card.

Give customers a reason to return: personalisation and exclusive value beyond price. Industry research found roughly a third of Australians want exclusive access and almost a quarter want personalised recommendations.

Empower the people who deliver the experience: clarity, tools and agency for store teams, with support that enables rather than targets that feel punitive.

We framed these as how-might-we questions for the business, such as how might we make Appy Deals accessible to more users, and how might we show customers we know them and are more than just a number.

Onboarding concepts and in-store opportunities

We took the sign-up and linking journey into concept design, focusing on the user experience rather than the interface so stakeholders could react to the flow.

The research also pointed to three opportunities beyond the app.

First, onboarding and linking before the store visit, through timely nudges such as push notifications.

Second, a digital wallet card, which gives access without costly reception upgrades and fits how many younger customers prefer to redeem.

Third, the option to sign up, link and redeem at the POS, a model customers already know from other retailers. All of these need further analysis, stakeholder input and user testing before release.

Outcomes

We gave the business five priorities and a way to measure them. Increasing registered monthly active users is not only about adding features, because success depends on an ecosystem that needs constant attention.

  1. Fix the fundamentals: app speed and reliability, and accurate POS prompts.

  2. Add clarity: benefits beyond price, a clear reason for the mechanic and clear partnership definitions with Everyday Rewards.

  3. Empower the frontline: consistent training, updated scripts and tech that works.

  4. Broaden inclusion: access for customers who do not use the app, including a physical or digital wallet card and an offline barcode.

  5. Give reasons to return: personalisation and exclusive value beyond price.

Success metrics: more registered and EDR-linked monthly active users, more new registrations, fewer Guest mode and repeat POS button transactions, a larger database, a higher Appy Deals share of promotional sales, and better voice of customer and NPS scores. FY26 targets included reducing the Guest mode share and lifting the share of EDR-linked Appy Deals transactions.

Sizing the business case

We sized the opportunity so the business could weigh it, using FY25 app data. Roughly one in seven people who start registering do not complete it, which is tens of thousands of customers a year.

If all of them converted from guest to member, the upside could reach low double-digit millions in annual revenue. Our modelled scenarios assume small gains in completion and estimate low-to-mid single-digit millions from fixing registration, plus hundreds of thousands to about two million dollars from easier Everyday Rewards linking. These are estimates that testing needs to validate.

Next steps and scaling

We tied each finding to the three FY26 focus areas so the work could slot into existing plans.

  1. Grow customers: run an Appy Deals plus EDR points multiplier, expand product breadth and improve the onboarding experience for older segments.

  2. Understand customers: integrate the EDR linking journey into app sign-up, automate the data feed and clarify privacy messaging.

  3. Engage customers: add a digital wallet barcode, speed up the app, and build a unified training toolkit and a Connected Community support model for store teams.

The frontline feedback loops (voice of customer and Appy Deals tracking) stay in place so each change can be tested against the metrics above.

Delivery sat across four groups. The squad brought designs and features to life in the app, the CRO team made sure decisions were driven by data and testing, marketing brought the BWS brand to life in the new experience, and eCommerce owned the business outcome.

The plan ran from the playback through research, wireframing and user feedback, build and delivery, with an onboarding and linking campaign planned for February (to be confirmed).

Reflection

The biggest lesson was that high volume can hide a strategic failure. The headline numbers looked healthy, and it took frontline observation to show that most of the growth was not capturing the data the program existed for.

What I took from it:

  • Go to the frontline. Store teams revealed workarounds that no dashboard showed.

  • Pair stories with numbers. Quotes explained the behaviour and usage data sized it.

  • Design for how customers really shop, not how we want them to shop.

  • Lead with the "why". A discount alone gave customers no reason to register.

[Add a challenge you faced and how you worked through it, such as aligning stakeholders or contractual limits on linking with Everyday Rewards.]