Case study: Rabbit Rewards
Carrot Rewards was the former brand name of the loyalty programme of Rabbit Card, a transit smart card in Bangkok. The Rabbit Card is used for paying fares on the BTS Bangkok Skytrain and for everyday retail spend in Bangkok.
Carrot Rewards was launched in 2012. It allowed members to earn points from Skytrain rides and retail spend and redeem them for coupons and special merchandise offers.
While membership was high, management believed there was an opportunity to further improve programme engagement especially in everyday retail spend portion of the programme.
Loyalty Advantage was engaged in 2014 to:
conduct a detailed analysis of programme dynamics and suggest opportunities for improvement; and
propose a framework for developing greater customisation and targeting of direct offers to their customer base.
Loyalty Advantage began with a detailed fact-finding and data analysis process including:
over 15 interviews and workshops with marketing, operations and technology at Carrot Rewards and Rabbit Card to understand current processes and perceived opportunities for improvement;
reviewing customer- and merchant-level data from programme inception, including demographics, transactions, coupon requests and usage, redemption and promotions;
developing and deploying (through an external firm) a qualitative and quantitative customer research survey targeting the most engaged and least engaged customer demographics to understand key behavioural differences between these populations; and
examining current and future points liability and analysis of financial implications of changing points expiry rules.
Using the results of this initial analysis phase, we:
evaluated alternative business models for Carrot Rewards on ease of execution and potential financial returns;
proposed detailed programme design changes including earning mechanics, rationalisation of partner promotions, and reorganisation of marketing and operations teams to improve performance and manage costs; and
developed a three-year change implementation prioritisation roadmap for maximum effectiveness.
The Loyalty Advantage programme improvement recommendations have largely been adopted over the last 2 years, including:
a rebrand from Carrot Rewards to Rabbit Rewards; and
the creation of a dedicated data analytics and marketing automation division to better use programme data to drive activity and engagement.