To get customers through its doors, Mitre 10 became the first retail partner to offer in-store Airpoints Dollars redemption across all products.
It was a risky move, but one that’s paying-off.
There are monumental changes happening retail and Mitre 10 joins its retail peers in facing new threats and challenges. Having been in the market for 45 years, Mitre 10 knows it needs to continuously differentiate itself to give customers a reason to shop and keep coming back.
The retailer identified an opportunity to leverage its partnership with Air New Zealand’s Airpoints programme to be the first retail partner to offer in-store Airpoints Dollars redemption across all products.
The proposition became: ‘At Mitre 10, you can earn Airpoints dollars and you can spend them here too.’
When the idea was proposed to store owners, they saw it as an opportunity to grow customer loyalty – and to make sure that happened it surveyed Airpoints customers through research partner Yabble.
- 83 percent thought the idea of using Airpoints in-store was appealing or very appealing
- 81 percent of Airpoints customers said they were likely to use it
- 40 percent said it made them feel more positive about Mitre 10 overall
With customers on-board, it then had to convince Air New Zealand that it was a right strategic move and that the new experience could be carried out seamlessly for Airpoints customers. Mitre 10 and Air New Zealand made significant investments to develop capability to transact points in real-time, securely and reliably, being frictionless for customers. Overall, seven different technology systems across both businesses were impacted. With that investment came a risk as neither party could be certain it would be a commercial success – it relied on customers responding to the offer.
To make sure they did, a marketing campaign was created with three missions. The first to take credit for being the first retailer to launch redemption of Airpoints, the second to make sure customers understood the new offering, and the third to deliver a great in-store experience.
Prior to the initiative’s launch, a pilot run in five stores and proved to be a success.
That success has continued as six months in market, the initiative is delivering, and exceeding, objectives.
It had hoped to achieve a 40 percent prompted awareness of the programme with Airpoints members and the result was 47 percent awareness.
As well as this, it’s objective to achieve a customer satisfaction score greater than 80 percent was surpassed as it reached a customer satisfaction rate of 98 percent.
Its objective to attract additional Airpoints customers to Mitre 10 was also surpassed with many new customers coming to Mitre 10 or those who hadn’t shopped there in the previous 12 months returning.
Another objective was to increase the visitation of customers who redeem by five percent and the result was 12.97 percent. The final objective was to achieve a greater basket size spend with Mitre 10 Airpoints customers. The goal was 10 percent and the result was 29.21 percent.
These results have vindicated the value Mitre 10 being the first in market for this innovation.