Shtuki: the chain of gift stores has launched a loyalty program with inCust

Shtuki:  the store of original and unusual gifts. For 10 years, they have been experts in the world of gifts that created a chain of stores in Kyiv and an online store that serves all of Ukraine.

Business Needs: 

• Launch the loyalty program
• Automate database updates
• Build an efficient channel for communication with customers
• Segment customers
• Optimize business processes based on the profitability of different segments
• Build complete analytics, including analytics for stores, customer base growth, special offers, days of the week, and sales
• Establish cross-marketing activity with other businesses
• Connect bonus points redemption mechanisms with social networks

It was necessary to differentiate Shtuki from other gift shops. There are a lot of competitors on this market and the only way to survive is to build a special relationship with the brand.

Solution:

inCust CLM is used as cloud service (SaaS)

Modules used:

• Loyalty and rewards
• Coupons and Certificates
• Kiosk
• E-shop
• Information and Communications
• Customer database

Results:

• The project was launched with the necessary integrations in one week and without exceeding the allocated budget
• Nine points of sale were connected to inCust
• InCust service was integrated with the following systems, which were used by the company in various business processes

Stages of the launch process: 

1. Replaced the outdated discount program with the revamped loyalty program based on bonus points, increasing the profit. The customer database was collected and the business started to talk to customers.
2. Integration with shops and the online store. Integration with the e-commerce platform was very quick, since it was a ready-made module. 
3. Active work with the customers using omnichannel mailings (SMS, push-messages in a mobile app). Issue of temporary bonus points as a birthday gift.
4. Active use of coupons and certificates. Personal and special offers made to different segments of customers. Different game mechanicі (lottery) to attract shopping mall visitors to the Shtuki stores with the help of promoters.
5. Cross-marketing campaigns have been launched with partners (e.g. CoffeeLat coffee shop chain) using inCust platform capabilities.
6. Targeting on social networks to conduct promotions with existing customers (in some cases, the conversion reached 5%). The use of inCust Kiosk as a tool for self-redemption of coupons by customers.

Features Implemented: 

• a modern loyalty program with compound rules for different customer segments; 
• a unified procedure for engaging customers through the website and stores; 
• integration with POS and accounting systems, online store, and plastic cards; 
• automated omnichannel notifications in customers’ language; 
• Birthday greetings;
• use of the inCust mobile app for customers.

We had a need to build an efficient loyalty program for our “Shtuki” retail chain and its online gift store. Previously, there existed a loyalty program, but, unfortunately, it was outdated. This loyalty program had very limited functionality, it was built on cumulative discounts and transition between membership levels was not automated. All these processes were done by hand, which made staff fraud possible. Also, it was difficult to collect analytic data, with help of which we could build our strategy. These were our requests. The loyalty program gradually went into red, and it was impossible to enhance it due to limited functionality. Therefore, we realized that we need to improve a loyalty program with updated mechanics. And there were two options: we could make a loyalty program ourselves (in 1C accounting system), or we could use a third-party solution. We checked the price and figured out that making the program would be very expensive because for developing each new function (new rule or report), we would have to pay developers and add those functions all the time; doing this would cost us a lot of money. As a result, we chose inCust. The service provides a wide range of functionality and everything that we needed was already there. There was also an excellent response to our new requests: if it was necessary to come up with something new, implement or add, then this was quickly implemented. Also, we received instant support and help from the manager and, in general, the whole team, in all our requests. The important factor was the low cost: you only pay the subscription fee and for the ability to build very deep analytics on our request. How we implemented the solution: first, we made the test version for one store, then we started to scale it to the whole retail chain, and in the end, we added the e-shop. The main problem was the perception and understanding by the staff (salespeople) of the mechanics of the program. With the help of the inCust specialist and me (the employee of the Shtuki company), we constantly conducted training, actively answered all questions, and tried to make some processes easier for salespeople to understand. We are very pleased with our cooperation and the loyalty program.

Elizaveta Omelchenko Head of Marketing Operations „Shtuki“ gift shops