Loyalty Program
Leroy Merlin

Loyalty Program
Leroy Merlin

Loyalty Program
Leroy Merlin

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What was the project about?

Create a Proof of Concept focused on increasing sales recurrence, influencing customer purchasing decisions through the Leroy Merlin Loyalty Program.

Current sales recurrence without the Program

Current sales recurrence without the Program

2,4

/year

Current sales recurrence with the Program

Current sales recurrence with the Program

2,9

/year

2023 sales recurrence goal

2023 sales recurrence goal

4,3

/year

What was my role in the project?

Expectation alignment with the business team

Interpretation and materialization of existing data (research and analytics)

Definition of design strategy

Prioritization

Discovery

Discovery

Discovery

Setting the foundation for the project

Delivery

Delivery

Delivery

Now it's time to start putting rough ideas out of paper and make the project go live

Now it's time to start putting rough ideas out of paper and make the project go live

Ideation

Prototyping

User testing

Handoff to development

Design process in the Leroy Merlin context

This is important to know what steps I can take to stablish my design process

Poor design culture

Design culture at Leroy Merlin is in a intermediate level. It means that it was part of the job to make sure all the departments were aware of the importance of a design process well structered.

Short deadline

Deadline for this POC was 3 months due to resorces available. This had to be perfectly align with the business team to manage expectations.

Outdated research

Although having a research was an excelent starting point, because I didn't have much time I had to take advantage of it the best way possible, interpreting data and bringing some updated insitghs from the team.

Kicking it off

I went out to understand users' perceptions of different loyalty programs. I was able to found data from a survey conducted in 05/21 that still contained valuable insights:

What users dislike about programs

• High spending required for point accumulation - 'only one side wins'

• High prices of products and services to be redeemed for points

• Points expire - "If learned them, they're mine, I use them whenever I want!"

• When point expiration is not clear

• Changes without notice to the program mechanics and participating partners

What users like about programs

• 'Instant' advantages

• Relatively low points required for redemption - 'win-win' relationship

• Variety of stores in one program for point accumulation.

• Versatility in using points across various stores and services

• Long point expiration period

• No cost to join the loyalty program

Answering questions about the Leroy Merlin Program user

How does the user currently interact with the program?

How does the user currently interact with the program?

Analytics (Jan - Jun 2023)

Do they access the loyalty section?

Yes!

High rejection rate, though!

• 36,72% from the Leroy website

• 29,65% from Google paid media

• 11,27% from SMS paid media

Does the user understand how the program works?

Some

Heavy Users: those who already know the dynamics:

"It's like going to the cart, and in the end, you have the option to activate or not." (heavy).

"Since I had used it before, I knew it appeared at the end, but when I activated the voucher, I didn't read to see if it would go to the final screen, I think I would have been lost..." (heavy).

Does the user remember they are part of the loyalty program?

No

"At the same time I thought it was cool, I wondered, 'Why would I use this?!' My shopping profile for this type of store is once a year. So, it'll be just another loyalty program where the points will sit unused, and I'll never use them..."

Problems found

User does not remember being part of the program

Lack of visibility for the program

User does not fully understand how the program works

Point redemption makes the user to leave the purchase flow

User does not understand the
progressive point earning mechanism

The quantity of points x money is not attractive

Possible solutions

Showcase program attractions on the
homepage product page

Discount simulation for non-logged-in users

Display program attractions for products (discounts with coupons and cashback)

Renewing point expiration date through new purchases

Display points about to expire and point quantity
graphically

Display incentive to reach milestones

Different treatment for
different customer classes

Show customized discount based on profile

Display discounts on selected products/ categories

Allow discounts to be activated during the journey

Mapping initiatives

How can I classify initiatives by its importance?

I will begin by basing them on 3 basis:

1- Attractiveness (business)
2- Communication
3- Experience

I created scores that are based on research, analytics, and team perception. They summarize the proposed solutions in specific topics, as you can see in the image.

Priorization

Initiatives classified by importance

How can we address the lack o visibility problem?

Possible chages made to the flow

Applied solution

I decided to make tweaks on the price section of the product page

Implementing the ideal scenario on the Product Page by giving visibility to the program's attractions and enabling progressive redemption of points;

Implementation of a "gamified" scale to give transparency to the user and create an incentive to accumulate more points.

Also, making possible for the user to redeem points without leaving the flow through a pop up (second image).

To be cautious: change as little as possible the product page, as it is a highly sensitive area.

Complex viability but with the most impact to reach our goal.

And then, reviewing the Program Section

Before:

• Lack of clarity on how the program works.

• Violation of the "Recognition rather than recall" heuristic.

• Difficulty in relating the number of points with the redemption of benefits.

Before:

After:

1- Easy redemption of points.

2- More transparency on points and redemption.

3- Points expiration alert.

4- Gamification.

After

Roadmap predictability

Aligned with the technical development team and Project Manager.

Aligned with the technical development team and Project Manager.

Handoff

Having the entire scope defined, it's time to finalize the project by handing over the files to the developers. I did this through documentation that describes the following aspects:

1- Identification of Design System components

2- Construction of organisms (group of components)

3- Component behavior

4 - Specific function of each component

5 - Definition of rules and acceptance criteria

The end!

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