Campaign Summary

KappAhl developed a fully-mobile loyalty program based on consumer insights. The program provided discounts, fashion guides, and inspirational content that drove sales and

Strategy

Objective and Context:

Life & Style by KappAhl is a loyalty program, designed for inspirational, targeted communication. By using mobile as primary communication platform, KappAhl efficiently generated direct responses and calls-to-action for sales both in-store and online.

Target Audience:

A comprehensive survey was carried out among KappAhl’s customers to determine their preferences for a members’ club concept. The brand also conducted an analysis of the digital behavior and smartphone penetration in their target group of women aged 45 to 55. The survey revealed that customers wanted rewards, fashion-focused and inspirational content, and good bargains. Customers also indicated they preferred mobile as the primary platform for communication, and had a clear reluctance to plastic cards and paper coupons.

With a relatively small CRM team running campaigns on all markets, the need for a sophisticated and integrated technical solution for efficient campaigning and analysis was vital.

Creative Strategy:

The insight behind the creative concept was that KappAhl’s target group wanted to be smart and fashionable. They wanted to use modern technology and receive true value offers, as well as to be guided along shopping journeys and feel “fashion safe.”

The primary platform for the loyalty program was an app, but members without a smartphone could also access the basic features such as point-of-sale identification and bonus check distribution, through SMS and online.

When opening the app for the first time, a scratching game with bonus rewards appeared, as lottery tickets were relevant to the target group.

The launch campaign was supported by local TV commercials and mobile advertisements, but the most efficient channels were owned media: KappAhl’s SMS opt-in database and the sales staff in-store.

Execution

Overall Campaign Execution:

This was a completely mobile loyalty program that used an app as the primary channel. All key functions, including scan-able coupons, were accessible through SMS and mobile web, as KappAhl did not want to exclude any part of its target group. Being an inclusive brand is one of KappAhl's brand values. The budget for the concept, design and build of the mobile services was around $600,000 USD.

Mobile Execution:

This was a completely mobile loyalty program, with advanced push, geo-targeting, and scan-able capabilities.

Results (including context, evaluation, and market impact)

Context:

Loyalty programs for retail brands are often traditional and not subject for innovation. In Scandinavia, this was the first-ever cardless and fully mobile reward program with sophisticated targeting.

Results:

• The number of members in Life & Style by KappAhl after six months exceeded one million. The population of Norway is 5.1 million.
• After launch, the app went straight to number one in AppStore’s Lifestyle category, and reached third in the overall top list.
• The activation rate, defined as the percentage of users logging on after downloading the app, was 92 percent after launching in February, 2015.
• Offers in the inspiration section in the app converted to online sales 41 percent better than the equivalent offer in KappAhl’s traditional emails.

Market Impact:

The success of Life & Style by KappAhl proved that the consumers wanted relevant, targeted offers and inspiration through their channel of choice, mobile. It has made an impact on the CRM industry as a whole, and several brands are following KappAhl's lead.