HOW HAPPINESS CREATES ROI

Renault

Question: What do you give your customers to encourage them to part with another £15,000+?

Answer: Develop a loyalty programme to deliver an improved ownership experience for the customer and love for the brand. Or in other words, use happiness to generate a positive ROI.

9% - Increase in repurchase rates between 2011-2013
21% - Increased customer engagement with the brand

THE SOLUTION

Our insight was that the ownership cycle of a Renault driver was an emotional journey best understood as a curve – “the happiness curve”. The early stages are dominated by mixed emotions – joy of purchase tempered by anxiety over delivery delay. The final stages are a conflict between the temptation of something new versus a fondness of the old.

With that in mind, we shifted the programme from ‘selling and telling’ to building relationships, mapping our comms according to how far each individual driver had progressed along the curve. Our aim was to increase the value-exchange and relevance at key moments of impact. For example, we aimed to start the curve as high as possible, sending the new owner packs that maximized the joy of purchase. Then towards the end of the lifecycle our aim was to soften the inevitable curve decay. And by using personalisation we treated Renault drivers as individuals throughout, maximizing the value-exchange.

THE RESPONSE

The quality and quantity of data-capture improved as the programme progressed. There was an increase in revenue from after-sales and accessories. There was an increase of 21% in customer engagement with the brand, and a 9% increase in re-purchase rates between 2011-2013.