Target Master Boosts Piggly Wiggly’s Customer-Loyalty Programs

To better compete in the highly competitive retail grocery marketplace, Piggly Wiggly Carolina needed to know more about customers in its customer-loyalty programs. Target Master, ACI Worldwide’s multifaceted target marketing solution, helped the grocery-store chain track customers’ response to the programs.

Our Customer
Piggly Wiggly Carolina Corp., based in Charleston, South Carolina, has 110 full-service grocery stories throughout Georgia and South Carolina.

• Weekly store columes range from $75,000 to $400,000; total sales exceeded $700 million in 1998

• Piggly Wiggly Carolina’s Pig’s Favorite Customer Loyalty cards are used by nearly 70 percent of customers (750,000 customers) in 80 percent of their transactions

• 900 U.S. fanchises are operated by Piggly Wiggly, the parent company

The Challenge
Piggly Wiggly Carolina has long used in-store promotions to help boost sales. But the company had no reliable way to determine these programs’ effectiveness or to gather information about customers’ shopping habits. The company needed a system to monitor response and sales lift from the stores’ promotions such as Baby Club, Kids Club, Travel Club and private-label rebates.

The Solution
To address its customer-loyalty program needs, Piggly Wiggly chose Target Master, a product that allows retailers to implement effective, multifaceted marketing programs.

Target Master’s powerful data mart collects the customer, product and purchase information necessary to implement personalized customer-loyalty programs. The application retains information from individual orders, customer demographics and product hierarchy.

This information is then combined and updated daily, giving retailers up-to-date and comprehensive information about customers and their buying patterns. Retailers can use this information to perform market basket analysis (the ability to review customers’ orders), personalize customer-reward programs and review sales performance for the entire chain or for individual stores.

“Target Master’s data storage is in an open architecture environment,” says Jimmy Brown, director of loyalty marketing for Piggly Wiggly Carolina. “Piggly Wiggly Carolina can directly query data to meet any data reporting not available with Target Master’s reporting system.”

With Target Master, retailers can:

• analyze sales, customer and product movement at any point on the organizational hierarchy from the entire chain to individual stores.

• analyze customer segmentation to more easily cross-sell and up-sell services and products, identity lost customers and gauge the performance of marketing programs.

• create and implement target marketing campaigns while measuring marketing efforts and customer response.

• create multilevel electronic sweepstakes programs that allows automatic entry based upon their visits, product purchases or spending habits.

The Results
Piggly Wiggly Carolina has successfully monitored the results of its promotions using Target Master. For example, the company:

• implemented a customer campaign that retained 44 percent of its lost customer base after five months and returned 500 percent of the campaign’s cost.

• saw a 35 percent increase in overall sales to Baby Club members.

• measured a 27 percent increase in spending by Kids Club families.

• increased its sales to private-label customers by 17 percent by implementing a targeted marketing campaign.

In addition to using Target Master, Piggly Wiggly Carolina has converted its Greenbax trading-stamp program from paper to an online interactive points program through its use of ACI’s WinPoints and XpresShop software. WinPoints, part of the WINPAY24 suite, tracks point accumulation and redemption of customers’ Pig’s Favorite Customer cards.

XpresShop, a customer self-service kiosk, invites shoppers to scan their Pig’s Favorite Customer cards to review points balances and redeem points for rewards such as gift catalogues, in-store discounts and free movie tickets. WinPoints and XpresShop helped increase loyalty card use by 48 percent and, in some cases, boosted per-store sales 8 percent.

Who To Contact
Contact us for more information about Target Master. If you are already an ACI Worldwide customer, contact your local sales representative to learn more.