In this case study, read how Mike Migliore stepped in at a global FMCG sports nutrition retailer to rescue their floundering subscription programme across both their brands and differentiate in a crowded market. Mike redefined the subscription proposition portfolio based on customer engagement and LTV; coordinated marketing teams for launch and ensured technology teams delivered on time, all the while keeping executive leadership and the board informed. 50% of subscribers were previously dormant customers, LTVs increased by 10% on average and retention was on target at 85%.
Context:
The world of sports nutrition is as competitive as sports themselves. Companies constantly innovate their products and marketing strategies to gain a competitive edge and secure their position in this dynamic market. CVG’s client was no exception; within an 18-month period, the retailer had undertaken a re-brand and baselined all prices to exceed those of their competitors, firmly planting themselves at the premium end of the market. As they expected, this reduced sales volume and frequency of purchase, but traditional marketing efforts were not growing sales as quickly as desired.
Challenge:
The executive leadership had committed that subscriptions would launch within the financial year to the board but, by the start of Q2, the business was no closer to defining what role subscriptions would play in reversing their declining sales volumes. Mike was brought onboard to (1) define how subscriptions would generate higher volume and revenues within the new brand identify; (2) upskill data and CRM teams on LTV and lifecycle marketing and (3) oversee the launch.
The work:
The client was working to a three-month timeline, during which a key board meeting would be held.
Customer Analysis – Mike first set out to understand existing customer behaviour, working with the data team to:
Proposition Definition – Mike worked with the team to define a tiered proposition portfolio designed to increase purchase frequency whilst rewarding the most loyal customers.
Customer Strategy – Mike worked with the team to articulate how the business could reverse the decline in sales and maintain premium market positioning by selling a tiered proposition portfolio, implementing outstanding content-driven CRM and more effectively managing the supply chain.
Growth Forecasting and Business Case -- Mike worked with the commercial and data teams to define the value of the new proposition portfolio and customer marketing strategy before aligning the benefit to existing growth targets. Mike also worked with the executive leadership to secure key budget to drive the GTM plan and additional technology development work.
X-Team Design and Management – Mike led the cross-functional team to launch, keeping tight governance on each key member of the team and their respective deliverables.
Results and KPIs
Mike’s expertise in customer value management and strategic vision breathed new life into the FMCG sports nutrition retailer's subscription program. Through data-driven insights and customer-centric initiatives, Mike not only reversed the program's decline but also transformed it into a thriving revenue generator. This case study serves as a testament to the power of strategic customer value management in driving business success and building long-lasting customer loyalty.
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