What improvements could Coles make to its loyalty program to better engage younger shoppers?

Introduction

To improve Coles' loyalty program engagement with younger shoppers, we need to understand their unique needs and preferences, then tailor our offerings accordingly. I'll analyze the current program, identify pain points, and propose targeted solutions to enhance its appeal to this demographic.

Step 1

Clarifying Questions (5 mins)

• Looking at the loyalty program context, I'm thinking about the current user demographics. Could you share the age breakdown of our current loyalty program members, particularly the percentage of younger shoppers (let's say 18-35) compared to other age groups?

Why it matters: This helps us understand the scale of the opportunity and current engagement levels. Expected answer: Younger shoppers (18-35) make up about 20% of the loyalty program members. Impact on approach: If the percentage is low, we'd focus more on acquisition strategies; if it's higher, we'd emphasize retention and increased engagement.

• Considering user behavior, I'm curious about the primary touchpoints younger shoppers have with Coles. Are they primarily shopping in-store, using the mobile app, or engaging through other channels?

Why it matters: This informs where we should focus our loyalty program improvements. Expected answer: Younger shoppers tend to use the mobile app more frequently but still shop in-store regularly. Impact on approach: A higher mobile app usage would lead us to prioritize digital features and experiences.

• Regarding pain points, I'm wondering about the current redemption rate of loyalty points among younger shoppers. How does it compare to other age groups, and what are the most common rewards redeemed by this demographic?

Why it matters: This highlights potential issues with the current reward structure or redemption process. Expected answer: Younger shoppers have a 20% lower redemption rate compared to other age groups, and they primarily redeem for discounts on groceries. Impact on approach: A low redemption rate might indicate a need for more appealing rewards or an easier redemption process.

• Thinking about company alignment, what are Coles' broader strategic goals for the next 2-3 years, and how does improving engagement with younger shoppers in the loyalty program fit into these objectives?

Why it matters: Ensures our proposed solutions align with overall company direction. Expected answer: Coles aims to increase market share among younger demographics and boost digital engagement across all platforms. Impact on approach: Would focus on digital-first solutions that can scale across Coles' ecosystem.