This story began when the X5 Group team approached us with a request to improve the loyalty program. At first glance, the task seemed classic: analyze the current customer experience, identify barriers, optimize processes. But already at the first meetings it became clear that this was not just a project about clients. The customer wanted this work to Improving the customer journey help the internal teams of X5 Group build a common dialogue, synchronize processes and come to a single vision of the loyalty program.
The joint project was a great opportunity to see that CX research is not only about studying the customer experience, but also always about the accompanying internal transformations and the customer itself.
HOW IT ALL STARTED Improving the customer journey
We started with a question that seemed obvious, but in fact turned out to be much deeper: what is a loyalty program and why do clients and companies need it?
First, we turned our attention to customers. To understand what they mean by “loyalty,” we conducted research in two different contexts. In cities with a population of over a million, where most of X5 Group’s businesses are represented, Improving the customer journey and in smaller towns, where it is important to convey the value of a single loyalty program to customers. This helped us see differences in perception: for example, for some customers, a loyalty program is an opportunity to save money and receive tangible benefits, while for others, it is an indicator that the company values their loyalty.
We delved into the analysis of a wide range of loyalty programs. We studied not only retail chains, but also ecosystem services from other industries. Such research gave us an important understanding that loyalty is not only about bonuses. It is also a way for a brand to show the client that they are important. We conducted a series of in-depth interviews and organized analytical purchases to see the process through the eyes of clients. australia telegram data We structured all the data we received in a project knowledge base. This was our first step to understanding what “loyalty” means for a client.
RESEARCH METHODS
When it comes to qualitative customer experience research, the amount of data collected is only half the battle. It is important to deeply understand the context and factors that influence customer behavior. In this project, we used a comprehensive approach: in-depth interviews, participant observation, accompanying purchases, and unstructured observations (corporate ethnography). This set of tools allowed us not only to obtain data, but also to see the full picture of the customer journey.
Analytical purchasing, for example, provides a unique opportunity to simultaneously record customer actions and immediately discuss their reasons with them. This way, we can not only understand how people use the loyalty program, but also identify what is important to them in this process. It is important not only to interpret data, the author has explored for a longbut to rely on facts – and these are the methods that allow us to do this effectively.
WHAT WE LEARNED
After the field phase of the research, we collected an impressive database: 150 notes, 99 barriers, 44 insights and 22 drivers. With their help, we began to formulate recommendations for improvement. One of the most interesting findings was that customers perceive loyalty not only as a bonus program, but also as an indicator of the brand’s attitude towards them.
We found that the lack of simple, intuitive steps for the client is one of the main barriers that reduces the effectiveness of the program. For example, the complexity of using points, the lack of a single interface and the variety of conditions in different X5 Group businesses became obstacles to the formation of a stable habit of using the loyalty program.
PROJECT RESULTS
One of the key artifacts of the project was the “Customer Experience Map” (CJM AS IS), which combined all stages of customer interaction with the loyalty program system. The peculiarity of this map is that we used the concept of direct consumption situations. Instead of the traditional long description of the customer’s path, china numbers we identified individual stages of interaction with the loyalty program: from choosing goods to paying at the checkout or using the application.
This map not only recorded the current state of the loyalty program, but became a tool for continuous improvement. It is used at regular X5 Group meetings to discuss and eliminate barriers identified during the study.
RESULTS
The project ended not only with the final presentation, but also with the launch of large-scale transformations in X5 Group. We handed over to the client a complete database, including:
interview recordings;
customer journey map;
bases of barriers and initiatives.
Based on the data and recommendations received, X5 Group has achieved significant success:
The NPS of the X5 Club loyalty program increased by 35 percentage points and reached 42%, making it the leader among loyalty programs in food retail;
The X5 Club loyalty program was twice recognized as the best in food retail according to INFOLine – in 2023 and 2024;
In 2024, X5 Club became the leader among programs with high regional coverage, ahead of Magnit Plus and Card No. 1 of the Lenta network.
These results highlight that the project not only strengthened X5 Group’s position in the market, but also laid the foundation for the further development of the loyalty program as a strategic tool.
