Case study

Butcombe

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Using Customer Insight to Shape A More Effective Loyalty Scheme

The Challenge

Butcombe Group wanted to better understand how its loyalty scheme was performing and whether it was delivering genuine value to customers. While membership numbers and usage data could show what customers were doing, the team wanted to understand why. The team also wanted feedback on the scheme’s identity, including its name and design, to ensure it reflected customer expectations and strengthened the overall proposition.

Our Approach

KAM conducted two in-venue focus groups with a mix of loyalty scheme users and non-users who regularly visit Butcombe pubs. Hosting the sessions in-pub allowed us to capture honest, in-the-moment reactions and encourage rich discussion around loyalty, value and customer expectations.

The groups explored perceptions of the existing scheme, the relative importance of different rewards and benefits, barriers to engagement, and how customers compare loyalty offers across hospitality and retail brands. Participants were also asked to review the scheme’s name, branding and visual identity, providing valuable feedback on how the proposition is communicated.

Outcome

The research gave Butcombe a clear understanding of what customers truly want from a loyalty scheme and, importantly, what is currently preventing greater engagement. The findings challenged the assumption that larger discounts are the key to driving loyalty. Instead, customers consistently prioritised simplicity, ease of use, quick rewards and clear value over complex mechanics and long earning journeys.

The research also provided valuable feedback on the loyalty scheme’s branding, naming and positioning, helping the team understand how customers perceive the proposition and what would make it feel more relevant and compelling. Most importantly, the project gave Butcombe a customer-led framework for the future evolution of the scheme. By understanding what drives sign-up, engagement and repeat usage, the team can confidently develop a loyalty proposition that strengthens customer relationships, increases visit frequency and delivers greater long-term value for both customers and the business.

“The stand out elements from our work with KAM has been the collaboration -with the whole KAM team. Thought the entire process KAM have been extremely proactive and customer centric and not afraid to challenge assumptions to get a greater result.

Beyond the research we have had advice and guidance is given along the way – it hasn’t just ended with the consumer insight being delivered, KAM have helped us share our offer and enabled us to make use of the research to maximise our impact.”

Cat Mosley – Chief Experience Officer

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