BWS Appy Deals:
The Next Phase

Delivered recommendations and actionable insights to support BWS’ App Loyalty Program Growth Strategy.

Business Impact

Business modelling estimates implementing recommendations could generate

~85k

Additional Customers

~$13m

Annual Incremental Revenue

1.2x

More Shops
(Member vs Guest Average Order Value)

Background

BWS introduced Appy Deals to encourage the download and use of the BWS App. Customers could redeem discounts and Everyday Rewards (EDR) exclusively through the app. The program would also help tailor BWS’ offers based on customer’s purchases.

Users Types

Guest: No Account

Member: Account | No EDR Linked

Power User: Account | Link EDR card

Ideal!

Data revealed customers who signed up and linked 🔗 their Everyday Rewards accounts had:

🛒🛒🛒 Higher Average Order Value

🛍️🛍️🛍️  Shopped more often

How might we convert more Guests into Power Users?

Problem

The Appy Deals program was performing well with sales and users growing 📈 steadily.

Membership sign-ups however were comparatively low 📉.

Why was this happening?

Challenges

New product team
–
New research restrictions
–
Tight timelines

Approach

Hitting two birds (quickly)

I facilitated a series document analysis session with core team members that: (1) condensed a 4 week exercise into 3 days and (2) Ensured collective understanding of the product.

The product team hit the ground running with a clear, evidence-based focus on the onboarding experience and I conducted activities to fill knowledge gaps.

–

Staff interviews were completed in-store allowing contextual customer observations sessions to be run simultaneously

–

Competitor analysis and best practices research highlighting key opportunity areas with actionable recommendations that informed the growth strategy roadmap

Numbers

Of users who start the sign-up process on the app, data revealed:

do not successfully complete the process

15%

drop off before linking their EDR account

55%

Key Themes

A confluence of issues across customer understanding, technical and in-store challenges contributed to the slow growth of Appy Deals membership.

Unclear and Underwhelming Value Proposition

The program had led with the “what”
‘Download this app for discounts’

Without a compelling “why”
‘We can recommend the wines you love, remind you when your favourite whisky is on special, reward your loyalty’

“People just whip out the barcode to get the deal... it’s just like a piece of paper to them. It’s not giving them anything. ‘I’ll get this unnecessary thing (app) so that I can get this money off.”
— Staff Member

Technical and Operational Realities

The program had been designed around an ideal experience for a particular customer – digitally confident, smartphone in hand

–

Phone reception and wi-fi issues in-store were widely reported

Staff Pressures

Staff prioritised maintaining customer satisfaction over program compliance

–

Resentment at managing initial program launch backlash from customers and poor head office support

–

Some staff believed that the inter-store competition rewarding staff for improving program adoption was biased by store demographics

Framework

Honeycomb Strategy’s Loyalty Framework* explains that active engagement with a loyalty program requires all 3 elements.

Analysing the Appy Deals experience through this framework identifies key area of focus to set the program up for success.

❌

Unclear Value Proposition

Want to do it

Able to do it

❌

Technical & Operational Realities

Reminder/ trigger

❌

Staff Pressures

* Based on BJ Fogg’s Model for behaviour change to understand why people take action

Key Opportunities

The Loyalty Framework guided product workstreams and contributed to defining opportunity areas for the strategy roadmap.

Motivation

Fix the Fundamentals

Start with the app sign up and linking user experience

Converting users who start but don’t complete account creation could see millions in potential in annual incremental revenue

Ability

Broaden Inclusion

Start with the customers reality, not our ideal state

Areas to explore included sign up at checkout, physical cards and digital wallet. Enabling two way linking take advantage of the customer’s existing EDR relationship

Prompt

Empower the Frontline

Store teams are our direct bridge to the customer

They build relationships with regulars in turn driving loyalty and need support is enabling, not punitive targets

Data revealed that registered members shopped more often and had a higher average order value.

Getting more customers to become members is not just about refining or adding new features.

Successful growth is an ecosystem requiring constant attention.

The first steps for improvement focused on removing friction, clarifying value and reinforcing new habits that re-establish customers trust to ensure accessing Appy Deals is easy and rewarding.

Business modelling estimates implenting recommendations could bring in up to 85k additional customers generating up to $13m in incremental revenue annually.