Case Study: How Coke Zone’s customer loyalty scheme became the top grocery brand site in the UK

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Back in 2008, Coca-Cola was faced with a declining market share in the UK teen market. This case study reveals how the drinks giant linked on-pack point codes to an engaging Coke Zone rewards website, boosting customer loyalty and becoming the most visited UK grocery brand site in the process.

Since the scheme went live, its email offers mailshot enjoys an open rate of 49 percent and a click through rate of 71 percent. The Coke Zone site garners dwell time averages 9 minutes, and prize draw entries total 116,497. Coke Zone is now consistently the UK's no.1 Food & Drink brand website. Currently the site gets over 38 million Facebook fans and over 400,000 Twitter followers.

More on this case study:
Brand: Coca Cola | Media: interactive digital marketing | Country: UK | Sector: FMCG Drinks | Objective: engage the youth market | Agency: Carlson Marketing | Format: Multi-Channel Marketing

Digital Marketing Case Study | Coke Zone's holiday video

Coca-Cola’s historic brand equity has allowed them to build a massive customer base. Communication with their customers on an individual basis to build loyalty, however had been tricky. In the United Kingdom, Coca Cola was particularly challenged in managing a points-based loyalty program that used paper coupons and an inefficient points bank.

Capturing these customers in a CRM database was crucial for Coca Cola to tap into key insights and keep their customers engaged

Additionally, it was losing critical market share among teens. A loyalty based reward programme was needed for teenagers and young adults; in 2008 Coke Zone was launched with a £5m campaign that included online, TV, and in-store activity.

Through using on-pack points codes, Coke consumers, after registering, could redeem these points for merchandise, prize draws entry, and ‘money can’t buy’ experiences. Participants continuously shared their purchase behaviors and actively engaged with the brand while demonstrating sustainable loyalty while building marketing ROI

Goals/Objectives

Through the reward programme, Coke Zone aimed to capture customer insights, encourage customer engagement and integrate with global CRM efforts.

• Boost consumption of Coca-Cola products among young adults and teenagers this programme aimed to drive customer retention with the use of personalised content.

• Reach the notoriously hard-to-impress teen market, Coke Zone’s goal was to drive customers to the website, where they would become engaged and stay engaged, all while encouraging consumers to make repeat purchases.

Strategy

Web and mobile communications channels feed a global insight database, delivering personalised interaction, behaviour-triggered message prompts, segmented email and SMS communication.

Coke Zone is a multi-channel communications campaign created on web and mobile communications channels feeds into Coca-Cola’s global CRM database, delivering behaviour-triggered message prompts, segmented emails and SMS communications.

The UK campaign was introduced with a 10-second tag running at the end of all Coca-Cola, Diet Coke and Coca-Cola Zero spots on terrestrial channels in peak time, as well on digital channels including Sky One. The six-week campaign was supplemented with a nationwide outdoor billboard push. This push was focused on raising awareness and encouraging young adults to register with Coke Zone.

Once registered, points could be redeemed for a items such as two-for-one Blockbuster film rentals, Coca-Cola branded items, or used to enter competitions to win bigger prizes, such as a £1000 shopping spree at ASOS.com, Samsung laptop, and a year's worth of downloads from iTunes.

A series of targeted emails were designed to drive further consumer interaction. Emails were triggered by events such as birthdays, reactivations and referrals which supplemented the monthly e-newsletter. Due to its good demonstration of a long term strategy with commitment to channel development Coke Zone received the 2008 NMA award for best use of email.

During the holiday season of 2008, Coke Zone launched a campaign designed to increased the brand’s Twitter followers and acquire new Coke Zone members. The campaign featured Tweets with personal Christmas messages appearing on the iconic Piccadilly Circus sign in London.

In January 2009 Coca-Cola refreshed the website to make it easier to navigate and more engaging. The Coke Zone website saw another re-vamping in 2011 with goals of stepping up Coke Zone's mobile and social-media activity.

The Results

Coca-Cola now has an always-on relationship portal for consumers, combining revenue-driving loyalty, brand immersion and relationship marketing.

Strong enrolment among the key hard-to-reach audience of teens and young adults

The email newsletter receives above industry average open and click-through rates (29% and 6% respectively) with loyalty communication offers rising to an open rate of 49 percent and a click through rate of 71 percent.

Monthly site statistics show that dwell time averages 9 minutes, and prize draw entries total 116,497. The website claimed the highest unique visitor numbers of any grocery brand website every month from October-to-December 2008, according Nielsen figures. Coke Zone is now consistently the UK's no.1 Food & Drink brand website.

Upon launch, the website claimed the highest unique visitor numbers of any grocery brand website every month from October-to-December 2008, according Nielsen figures.

Currently have over 38 million Facebook fans and over 400,000 twitter followers.

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