Introduction
To improve SnapScan's loyalty program for increased customer retention and engagement, we need to analyze the current state, identify pain points, and develop innovative solutions. I'll approach this by examining user segments, analyzing pain points, generating solutions, and proposing metrics for success.
Step 1
Clarifying Questions
Why it matters: Understanding the current program helps identify improvement areas. Expected answer: Points-based system with tiered rewards. Impact on approach: Would focus on enhancing tier benefits or point accrual methods.
Why it matters: Helps determine if the loyalty program is driving engagement. Expected answer: Daily active users engage more with the loyalty program. Impact on approach: Would focus on increasing engagement for less frequent users.
Why it matters: Influences whether to focus on acquisition or retention strategies. Expected answer: Mature product with slowing user growth. Impact on approach: Would prioritize retention and increasing share of wallet.
Why it matters: Ensures our solutions align with broader business objectives. Expected answer: Increasing both transaction frequency and average order value. Impact on approach: Would design solutions that encourage both more frequent and higher-value transactions.
Tip
At this point, you can ask interviewer to take a 1-minute break to organize your thoughts before diving into the next step.
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