Rewarding the retail customer while generating extra revenue: A perfect example of how market research methodologies can give big data a boost for optimum usage

Nicole Huyghe and Bart Vandenreijt


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Introduction

Part of the loyalty program of Carrefour consists of giving loyalty points to card users when their basket has a specific spend value. Carrefour wanted to know until which point can you motivate the customer to spend more while maximising the feeling of generosity and minimizing the promo cost. To help Carrefour with this, i.e. finding the ideal balance between reward and cost, solutions-2 combined big data (individual customer data on a big scale) with research methods. Carrefour allowed use of data from 2M of its customers, as well as its promo budget, in a live test environment. They implemented a complex conjoint design, in which MR principles and data were combined with real spend data. It clearly showed that big data and MR are both needed to get the best customer insights.

Background and business context