site/pages/our-work/case-study/nandos-loyalty/index.js
// @flow
import React from 'react';
import Social from '../../../../components/social';
import Image from '../../../../components/image';
import ScrollTracker from '../../../../components/scroll-tracker';
import {
PageHeading,
Body,
Quote,
Section,
SectionHeading,
SectionBody,
P,
H3,
UL,
} from '../shared';
import WhatToReadNext from '../shared/what-to-read-next';
import ChecklistContactUs from '../../../../slices/checklist-contact-us-slice';
import ListBox from '../../../../components/list-box';
import Card from '../../../../components/card';
// Image imports
import HeaderX1Img from './images/Header@1x.png';
import HeaderX2Img from './images/Header@2x.png';
import HeaderX3Img from './images/Header@3x.png';
import PlasticCardX1Img from './images/PlasticCard@1x.png';
import PlasticCardX2Img from './images/PlasticCard@2x.png';
import RyanX2Img from './images/Ryan@2x.png';
import TapWithPhoneX1Img from './images/TapWithPhone@1x.jpg';
import TapWithPhoneX2Img from './images/TapWithPhone@2x.jpg';
import TapWithPhoneX3Img from './images/TapWithPhone@3x.jpg';
import WalletsX1Img from './images/Wallets@1x.png';
import WalletsX2Img from './images/Wallets@2x.png';
import WalletsX3Img from './images/Wallets@3x.png';
import TestingX1Img from './images/Testing@1x.png';
import TestingX2Img from './images/Testing@2x.png';
import Registration1X1Img from './images/Registration1@1x.png';
import Registration1X2Img from './images/Registration1@2x.png';
import Registration1X3Img from './images/Registration1@3x.png';
import Registration2X1Img from './images/Registration2@1x.png';
import Registration2X2Img from './images/Registration2@2x.png';
import Registration2X3Img from './images/Registration2@3x.png';
import styles from './style.css';
const quoteProps = {
text:
'None of this would be possible without the audacity and vision to deliver a cutting edge customer experience, willingness to collaborate, adopt a test and learn mindset and staying totally focused on the needs of our customers. Red Badger has been a powerful ally from the start and instrumental in delivering a great customer experience with Nando’s.',
author: {
name: 'Ryan Foreman',
title: "Product Manager at Nando's",
image: RyanX2Img,
},
};
const social = {
title:
"Nando's: Delivering a digital reward programme with full-stack modern engineering | Red Badger",
description:
"Here's how Red Badger delivered a pioneering digital-reward programme for Nando's using NFC and full-stack engineering.",
metaImage: HeaderX1Img,
altText: "Nando's digital reward programme story",
url: 'https://red-badger.com/our-work/case-study/nandos-loyalty/',
};
export default function NandosLoyalty() {
return (
<ScrollTracker>
<Social {...social} />
<div className={styles.headerImgWrapper}>
<Image
src={HeaderX1Img}
src2x={HeaderX2Img}
src3x={HeaderX3Img}
className={styles.headerImg}
altText="Nando's digital reward programme story"
/>
</div>
<Body>
<PageHeading>Digital-first rewards programme</PageHeading>
<Section>
<SectionBody>
<P>
<a href="https://www.nandos.co.uk/card/about">The Nando's Rewards programme</a>{' '}
allows lovers of the brand's legendary PERi-PERi to collect ‘chillies’ to earn
free PERi-PERi. Red Badger and the Nando's Loyalty product team reimagined the
customer experience of the Nando's rewards programme - designing and building a
digital-first, mobile wallet enabled loyalty experience enabling customers to earn and
redeem rewards across all digital touchpoints.
</P>
</SectionBody>
</Section>
<div className={styles.coloumnContent}>
<Section>
<Image
src={TapWithPhoneX1Img}
src2x={TapWithPhoneX2Img}
src3x={TapWithPhoneX3Img}
className={styles.bodyImage}
altText="Mobile and Restaurant POS - Nando's digital reward programme"
/>
</Section>
<Section>
<Card>
<ListBox
className={styles.listBox}
title="HEADLINES"
items={[
{
label:
"Introduced first NFC-enabled mobile loyalty card in the UK built upon entirely bespoke infrastructure to enable the loyalty scheme across Nando's digital ecosystem",
},
{
label:
'Created a new digital channel for both customer acquisition and engagement',
},
{
label:
'Designed and built an end-to-end digital loyalty experience validated for customer desirability and business viability',
},
]}
itemClassName={styles.listBox__item}
/>
</Card>
</Section>
</div>
<Section>
<SectionHeading
subHeading="The Challenge"
heading="Poor experiences spoil the taste of free PERi-PERi"
/>
<SectionBody>
<P>
Back in 2018, Nando's came up with a hypothesis that transforming the existing
Nando's reward programme into a digital-first journey would eradicate a number of
problems customers were experiencing.
</P>
</SectionBody>
</Section>
<Section>
<div className={styles.coloumnContentTall}>
<Section>
<Image
src={PlasticCardX1Img}
src2x={PlasticCardX2Img}
className={styles.bodyImage}
altText="Nando's loyalty card - review and challenge"
/>
</Section>
<Section>
<div>
<P>
The original Nando's rewards programme offering relied on a plastic card.
Handing the card to staff at point of sale in the restaurant would allow customers
to collect chillies, which add up to rewards that can be redeemed for free food
(scientifically proven to taste even better than regular Nando's).
</P>
<P>
There were multiple issues with this setup. Customers had to keep the card in
their wallet and have it every time they visited. Cards were easily lost and time
consuming to replace. Customers would often start collecting towards a reward, but
then abandon their card, only to register a new one and start over again, no
closer to their free PERi-PERi. On top of that, the programme released more
plastic into the world, which wasn't aligned with Nando's environmental
efforts such as their commitment to{' '}
<a
target="_blank"
rel="noopener noreferrer"
href="https://www.nandos.co.uk/carbonneutral#"
>
reduce direct emissions to zero by 2030.
</a>
</P>
<P>The plastic card had to evolve with the times.</P>
</div>
</Section>
</div>
</Section>
<Section>
<SectionHeading
subHeading="Doing the right thing"
heading="Reimagining a loyalty programme"
/>
<SectionBody>
<P>
<strong>
Nando's believed solving the plastic card problem would unlock a host of other
benefits for both customers and business alike:
</strong>
</P>
<UL>
<li>
<strong>Increased engagement from current customers</strong>: Eliminate current pain
points with the scheme such as lost or forgotten cards, lack of understanding of the
value of the scheme, and incomplete registrations.
</li>
<li>
<strong>Open up new customer segments</strong>: Attract digital natives - who expect
to engage with brands in a digital way.
</li>
<li>
<strong>Business efficiency and cost reduction</strong>: Reduce administration of
the scheme and create a unified customer data ecosystem.
</li>
</UL>
<P>
The team identified a number of options for digitally enabled loyalty, the best of
which was to launch the Nando's card for customers' mobile wallets through
Apple's Wallet app and GPay. Now instead of the plastic card, customers simply
touch their phone at the till and the transaction will automatically use the
customer's Nando's account, earning Chillies and unlocking rewards when
ordering in restaurants or online.
</P>
</SectionBody>
</Section>
<div className={styles.bannerWrapper}>
<Image
src={WalletsX1Img}
src2x={WalletsX2Img}
src3x={WalletsX3Img}
className={styles.banner}
altText="Nando's card in Apple Wallet and Google Pay"
/>
</div>
<Section>
<SectionBody>
<P>
The challenge for the team was designing an experience that seamlessly connected
physical and digital spaces, ensuring all the customer touchpoints work in sync and
making the immense technical complexity feel entirely effortless.
</P>
</SectionBody>
</Section>
<Section>
<SectionHeading
subHeading="Do the thing right"
heading="Striving for the best customer experience"
/>
<SectionBody>
<H3>8-week test & learn discovery</H3>
<P>
The initiative kicked off with an 8-week discovery period. A cross-functional team
used a Lean approach to conduct customer research, competitor analysis and business
stakeholder interviews. We experimented with 7-10 technical solutions to digitally
enable loyalty, from linking credit card data to using a phone number to verify
identity and even biometric authentication.
</P>
<H3>Incremental value to the customers</H3>
<P>
The team settled on a mobile-wallet enabled scheme as the most viable and desirable
solution. The plan was to adopt an incremental approach to deliver value to
Nando's customers following a Lean methodology of rapid test & learn phases
with customers.
</P>
<P>
In the Alpha stage, we took a road trip to guerrilla-test our riskiest customer
assumptions and validate the technical viability of a new-to-market hardware solution.
Through this process we came up with many iterations of the journey and visuals to
identify what worked best for the customer.
</P>
</SectionBody>
</Section>
<Section>
<SectionBody>
<Image
src={TestingX1Img}
src2x={TestingX2Img}
className={styles.bodyImage}
altText="Group testing the Nando's digital reward programme"
/>
</SectionBody>
</Section>
<Section>
<SectionBody>
<P>
On the back of what we found out, we refined the experience and in the Beta phase,
rolled out the solution to Nando's most loyal customers. Once everything worked
to their satisfaction, we gradually expanded the new experience to include all
customer segments. This let the team release the new experience as early as possible
to get fast feedback, but without having to cater to every edge case and with a
limited impact if anything didn't work quite right at first try.
</P>
<H3>The fullest of full-stack software engineering</H3>
<P>
The team was the first in the UK to introduce a loyalty scheme into Apple's
Wallet app using NFC to tap the pass in the restaurant. This took full-stack effort
like no other, spanning web and mobile customer journeys, web services, transactional
email, Apple and Google wallet API infrastructure, down to integrating the tills with
a new hardware device enabling the NFC transactions for passes in mobile wallets.
</P>
<P>
Brand new and not available publicly in the UK and Ireland at the time, the NFC
loyalty technology was a first for Nando's. We worked closely with Apple to
implement the new service, and helped find a hardware supplier for the NFC readers
supporting it. In the end, it even took a custom device driver to make the user
journey as smooth as possible.
</P>
</SectionBody>
</Section>
<Section>
<SectionHeading subHeading="The results" heading="A future-proof digital solution" />
<SectionBody>
<P>
In addition to the foundation services to earn Chillies and redeem rewards, the team
delivered a brand new registration flow and an industry-first mobile NFC loyalty card,
as well as redesigned messaging of the scheme. We brought in new agile ways of working
and embedded a test & learn approach with customers and internal stakeholders.
</P>
</SectionBody>
</Section>
<div className={styles.bannerWrapper}>
<Image
src={Registration1X1Img}
src2x={Registration1X2Img}
src3x={Registration1X3Img}
className={styles.banner}
altText="Registration flow - card linking and adding a pass"
/>
<Image
src={Registration2X1Img}
src2x={Registration2X2Img}
src3x={Registration2X3Img}
className={styles.banner}
altText="Registration flow - confirmation and using a pass"
/>
</div>
<Section>
<SectionBody>
<P>The results speak for themselves:</P>
<Card>
<ListBox
className={styles.listBox}
title="Impact"
items={[
{
label:
'Within 3 months, over 300,000 customers had added the card to their mobile wallet',
},
{
label:
'Loyalty registrations doubled compared to the same period of the previous year',
},
{
label:
'The percentage of orders earning loyalty went from 33% to 66% and reward redemption jumped from 6% to 18% of orders',
},
{
label: 'Removed £200k of annual plastic card production cost from the business',
},
]}
itemClassName={styles.listBox__item}
/>
</Card>
</SectionBody>
</Section>
<Section>
<SectionBody>
<Quote {...quoteProps} />
</SectionBody>
</Section>
</Body>
<WhatToReadNext currentPage="prideCaseStudy" linkKeys={['pagoFx']} />
<ChecklistContactUs />
</ScrollTracker>
);
}