Caribou Coffee Case Study

Paytronix’s scoring tool significantly improves incremental sales impact for Caribou Perks promotions

Revamping Underperforming Promotions

Caribou Coffee had operated a points-based loyalty program for a few years. When a new manager took over the promotional planning and discounting strategies, she wanted to create a more data-oriented planning process with a focus on driving incremental visits and sales. She worked closely with Paytronix to build promotional strategies that leveraged historical data to refine targeting and improve results.

Test, Learn, Optimize, Repeat

Paytronix’s Data Insights team was integral in helping Caribou obtain the right data to analyze each promotion’s results so they could adjust subsequent promotions. Check-level data was used in a scalable way to target members and encourage behavior change, which opened up new possibilities moving forward.

Removing Dilutive Discounts to Get Better Results

To protect sales, Caribou pushed for offers that were smarter but not richer. As they developed a strategy, they found they could drive effective traffic results with offers that utilized smart targeting. Caribou had historically used many buy-one, get-one-free offers, but those were found to be dilutive and upside down on ROI. By adjusting targeting based on likelihood to visit, an impressive impact on incremental sales and visits has been seen.

“The Paytronix Data Insights team helped us design a target-and-control strategy that allowed us to build our playbook while documenting promotional results. We then use our playbook to accurately forecast what a promotion could do, making sure we hit our business goals. This has been hugely valuable to our business strategy. Over the past couple of years, Paytronix has been a great partner in helping us meet our business objectives and we’ve seen it positively affect our revenue. We look forward to continuing our work together and driving results.”

Caroline Larson, Director of CRM & Loyalty Caribou Coffee

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