The Bruster’s “buy 9, get the 10th free” punch-card program was popular with customers because it was simple and the rewards were clear. But for Bruster’s, there was a significant problem. Since the low-tech program didn’t provide information about member behavior or preferences, it didn’t allow for any kind of targeted promotions. Bruster’s partnered with Paytronix to roll out a program that would be a substantial upgrade over the punch-card one and deliver a positive financial impact to the chain.

A primary objective in rolling out a new Bruster’s loyalty program was to acquire data on customer behavior and use it to create targeted offers that would increase visits and spend. Bruster’s ran RFM segmentation campaigns during its shoulder seasons in September and January, and those promotions successfully drove an increase in traffic. The results were impressive:

• Loyalty members spent 10% more than the average ticket, and the top-performing stores saw an increase of 13%.
  
  

• Its first RFM segmentation campaign, which tailored promotions to match how customer segments interact with the brand, saw a 187% ROI.
  
  

• The lapsed-customer promotion alone produced ROIs that reached 263%.