FreshDirect: A Geo-targeted Loyalty Drives New Customer Growth

The Gen3 Approach

Using its extensive publisher knowledge, Gen3 proposed that Fresh Direct partner with Augeo, a card-linking publisher with an audience of 35 million cardholders that redeem cashback points for every purchase made with a participating brand. Augeo also has geotargeting capabilities that fit well with Fresh Direct’s geographic restrictions and also accepts commissions on net new orders only.

Gen3 set up the loyalty campaign, negotiated the budget, and monitored the spending. The agency ran a three-month test that targeted both new customers and lapsed customers with a cashback reward for each purchase.

To determine the incrementality with this test and the effect of the cash back with each purchase, a control group of 5% of eligible customers was not served the cashback reward, while all others were shown the 5% cashback rate.