Front Foot helped Best & Less uncover a super-high-value customer segment — 2.5x average purchase frequency, 3x average customer value — reframing how the retailer thinks about loyalty as a growth driver.
Front Foot Marketing works as a customer loyalty consultant for retail and consumer businesses across Australia — helping leadership teams turn loyalty data into a clear growth case, not just a rewards program. Here’s how that played out with Best & Less, working alongside Ian Bennett, for Australia’s leading value retailer.
The Challenge: Proving Customer Loyalty Value to the Business
Ian Bennett and Front Foot Marketing helped Best & Less assess and evolve its Customer Loyalty program and approach to loyalty marketing.
The project set out to help the marketing team answer one hard question:
How do we prove Customer Loyalty value to the business?
The Approach: A Customer Loyalty Value Analysis Across 1.3m Customers
We commenced a four stage process of discovery, prioritisation, definition and build, using our Incremental Margin Diagnostic.
The first two stages unearthed the current state approach to data capture and loyalty marketing, identifying the importance and value of all the data variables. In particular, this involved a deep dive analysis of sales data (at a gross margin level), customer cohorts, channel choice combinations, product category purchase behaviour, redemption rates, household structure and location.
The Result: Uncovering a High-Value Loyalty Segment
Whilst the specific results are confidential, a value segmentation quickly revealed a clear story.
In particular, the team discovered a super high value segment — with 2.5x the average customer frequency, and 3x the average customer value (CV).
A significant opportunity to think differently about loyalty programs as a CV driver. It’s all about growing the LOVE.
The next step is defining a new approach to loyalty marketing. This includes embedding a ROI calculation based on incremental gross margin shifts at an individual customer level, alongside test and learn trial activity for the next best potential cohorts.
As with any project, it’s wonderful when the teams click. So, we’re always grateful to work with good people who are open to change and share their kind words:
“Anton and Ian led a very considered approach to our customer loyalty review. Their data-led insights helped to prioritise areas of focus, and clearly articulated the value this would create for the business. Highly recommend.”
— Bridie Schibrowski, Chief Marketing & Digital Officer, Best & Less
If loyalty is more cost centre than growth driver in your business right now, this is exactly the kind of customer loyalty work I do. Get in touch below, or find out more about our Incremental Margin Diagnostic here.