STEW LEONARD’S
Stocking Up on Loyalty: How Stew Leonard’s Took Their Personal Touch Online for Loyal Customers
Achieving Double-Digit Growth in Customers and Sales While Keeping True to Their Mission
The Challenge
The grocery industry was an early adopter of loyalty programs; however, Stew Leonard’s fell behind with its outdated punch card system for only free coffee or ice cream. Their program limited the ability for expansive and sustainable customer engagement which didn’t allow this regional player to separate itself and compete against the top brand chains in the area.
The Strategy
To modernize the program and give Stew Leonard’s a competitive advantage in their market, we added enhanced rewards, launched a fully integrated app, and introduced push notifications for surprise-and-delight rewards. The app serves as a central hub for members to track rewards across locations while providing the brand with improved visibility into analytics. Future promotions and program updates will be tailored and released based on the brand’s initiatives.
The Solution
Build a Loyalty App: Starting from scratch, we set out to develop a simple yet scalable loyalty app to enable future program enhancements. Its intuitive design quickly drove member adoption and provided the brand with the leverage to engage customers and drive incremental spending by sharing daily deals, surprise rewards, and personalized updates.
Full Integration: The app design kept the customer experience at the forefront, seamlessly integrating with the brand’s website, POS, online ordering, security systems, and even third-party delivery services.
Expand Reward Options: The reward issuance ratio of the original program limited the brand’s ability to attract new Members, stand out from national grocers, and initiate revenue growth opportunities. With the scalability and flexibility of the new Loyalty app, the brand continues to introduce more rewards to increase transaction sizes and grow the Member base. The new program will allow Stew Leonard’s to pull the levers needed as their competitive landscape changes through the years.
Integrate Online Ordering: To stay competitive post-Covid, the app added online ordering, meeting evolving grocery shopping preferences.
The Results
Since the program changes in 2021, Stew Leonard’s has achieved double-digit growth year-over-year across Member transactions, total sales, and frequency —resulting in a 75% overall increase. Typical acquisition trends are quickly followed by frequency dips, but Stew Leonard’s New Members are loyal to the brand and program, and not just in for the quick deals. This expanding audience sets the stage for sustained growth as the program continues to evolve.
and Frequency
Growth
Jeff Smith
Job Title
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Achieving Sustained Growth While Driving
Deeper Customer Loyalty.
