Connecting stores and shoppers with the Bright​Loyalty Platform

Putting OXXO back in the driver’s seat of their loyalty strategy

<strong>Connecting stores and shoppers </strong>with&nbsp;the Bright​Loyalty Platform
<strong>Connecting stores and shoppers </strong>with&nbsp;the Bright​Loyalty Platform

With over 20,000 stores, there is an OXXO on nearly every street corner in Mexico. Convenience stores such as this continue to be one of the most attractive retail channels in the country, with double-digit growth in current value terms for the fifth year in a row.  OXXO’s Antidatti coffee loyalty programme has run for years, but OXXO has encountered challenges in measuring its profitability. On April 1st 2019, we launched OXXO Premia as a pilot to put OXXO back in the driver’s seat of its loyalty strategy and execution.

Top of mind among all Mexicans

OXXO is the largest convenience store in Mexico and covers almost all 32 states of the country. Its widespread street presence means that Mexicans even refer to it when giving directions, causing the retailer to be top of mind. In the competitive Mexican market, food retailers are highly committed to offering consumers more products, services, promotions and exclusive products to maintain their attraction. Mexican convenience stores are driving even faster improvements in shopper experience too: instead of focusing only on selling grocery products, OXXO offers in-store payment services and even distributes its own debit card. However, 7-Eleven is a strong competitor in the northeast and central regions; Super City has an important presence in the north and central regions; and Circle K is strong in the central region and some southern states.

<strong>Top of mind</strong> among all Mexicans
Improvement in&nbsp;<strong>shopper lifetime value</strong>

Improvement in shopper lifetime value

OXXO’s Andatti coffee loyalty programme has run nationwide for years, but OXXO had difficulty in measuring its profitability and in leveraging the programme as a way to communicate to customers directly. OXXO therefore contacted BrandLoyalty to deliver a loyalty solution that would enable it to create relevant promotion mechanics for consumers across all segments; find a value proposition with a strong business case for suppliers; and create more profitable programmes. ​

Designed to control and act on results 

Our goal was to enable OXXO to create campaigns, create and edit shopper profiles, manage content, and experiment with mechanics during campaigns, all via a self-service portal. First, we created a point-of-sale integration to make the real-time transactional data available. In parallel to this, we created an interface with OXXO's head office to empower its staff to execute campaign operations at a store level. At the same time, we made sure that results could be viewed and analysed real-time in those departments – such as marketing – that needed this access. ​We also ensured that reporting could be done through a real-time dashboard with segmented data and key numbers, such as the number of transactions and swipes per card per month. Finally, we created a custom-made mobile app for consumers focusing on long-term loyalty and social gifting for added community impact. By using the app, OXXO consumers can join the campaign, browse offers, view their progress, redeem rewards, and even give gifts to friends and family. OXXO named this complete solution ‘OXXO Premia’.  

Designed to control and<strong> act on results&nbsp;</strong>
Welcomed with<strong> open arms</strong>

Welcomed with open arms


OXXO Premia was launched as a pilot on April 1st, 2019 in 400 stores across two regions in Mexico (Pachuca and Los Mochis). The app gained more than 11,000 users within the first week. Consumer feedback was very positive, and participants loved the user experience. Even users outside Pachuca and Los Mochis have been actively requesting OXXO to extend OXXO Premia to their regions. 

Nudging shoppers to become active participants

The OXXO Premia self-service portal is part of IceMobile’s newest solution: the Bright Loyalty Platform. This is a cloud-based platform that has been set up to integrate seamlessly with our clients' own environments. It's now the beating heart that powers all of our digital loyalty campaigns. For instance, one of the goals in OXXO's marketing strategy was to improve shopper segmentation to target its customers more effectively in future campaigns. Thanks to the new OXXO Premia self-service portal on our Bright Loyalty Platform, the retailers's previously incomplete, polluted shopper data has been transformed into up-to-date and enhanced shopper profiles to which Premia members themselves contribute. With virtual member cards and sign-up incentives for the OXXO Premia app, the retailer has been able to identify and segment shopper profiles. What's more, OXXO has now managed to turn many of these shoppers into active participants by using effective 1-to-1 communication, loyalty accelerators, collection multipliers and incentives for early redemptions via the app.  ​

Nudging shoppers to become<strong> active participants </strong>

Benefits far beyond loyalty

The Bright Loyalty Platform has already provided OXXO with the insights and tools to improve its CRM and programme ROI at a campaign, category, supplier and SKU level – but that is far from all. It has also improved the retailer's daily operational performance, due to a welcome and useful solution for fraud. Fraud is a common problem for retailers in Mexico, with high loss rates due to theft from both employees and shoppers. Reporting through a real-time dashboard with segmented data and key numbers has made it possible for OXXO’s head office and store managers to recognise and act on fraud at an early stage by automatically blocking member cards and setting up limits.    

OXXO was so satisfied with these results that it decided to extend the pilot in order to try out new mechanics and – most importantly – integrate our Bright Loyalty Platform with its main app to offer loyalty on a national scale. Both companies are now working hard and closely together on this integration so as to create the optimal solution and to make sure the app will soon be made available for all shoppers and OXXO stores in Mexico. 

About OXXO

With over 20,000 stores covering almost all the 32 states of the country, OXXO is not only the largest player in Mexico, it's also the largest chain of convenience stores in Latin America. OXXO offers additional products and services, and even distributes its own debit card.

 

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