Bluepeak Logistics: Will the Loyalty Programme Pay for Itself?
Marketing
hard35 min0 submissionsStripe
Scenario
Bluepeak Logistics operates in logistics across Southeast Asia with about 226,609 active customers, who buy 13.7 times a year at an average basket of $2544. Gross margin is 44%.
Marketing proposes a points programme returning 6.5% of spend as future credit. The business case assumes a 6.1% lift in purchase frequency among members.
Analysis of the base shows 64% of customers already buy above the category average and would very likely enrol on day one.
Supporting data
base
- average basket
- 2544
- active customers
- 226609
- gross margin pct
- 44
- purchases per year
- 13.7
proposal
- reward rate pct
- 6.5
- assumed frequency uplift pct
- 6.1
base composition
- already above average frequency pct
- 64
Your task
Advise the CMO. Your answer should provide:
- Analysis — programme cost, incremental margin, and the net position. Show your working.
- Risks — including who you are paying and what for.
- Recommendation — launch, redesign or decline, with the break-even uplift.
State any assumptions you make.
Ready to move forward? Up next: Driftwood Hotels: Every Channel Claims the Same SaleNext question
How you'll be graded
80 points, 60% to pass.
- recommendation20
- market analysis20
- risk assessment15
- financial analysis25
Hint
Reveal suggested structure
Reward cost applies to all spend; incremental margin applies only to changed behaviour. Break-even uplift = reward rate / gross margin.