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Case Study

British Gas reshapes customer loyalty

  • Vision to differentiate in highly-regulated industry

  • Developed unique rewards program

  • Provide members with offers only available to British Gas customers via a fully digital solution

"Pega is the brain that drives our rewards program. Pega is great at tailoring offers – empowering us to deliver something meaningful to each individual customer and deliver a truly great customer experience."

Jo Allen Business Lead, Next-Generation Decisioning, British Gas

The Business Issue

British Gas has been engaged in a multiphase process to improve customer engagement. As a provider of a highly-regulated public utility, the organization is always looking for ways to differentiate itself from its competitors.

British Gas faced an additional challenge in early 2017 when the Office of Gas and Electricity Markets proposed price caps. The company quickly took action, announcing that it would launch a new customer rewards program in five months.

The Solution

With the help of Pega Marketing and the Customer Decision Hub, British Gas developed a new loyalty program focused on customer experience. The organization chose Pega because of its ability to tailor meaningful offers to customers, and delivering it completely digitally – providing a great, simple experience via personalized email and microsites.

British Gas delivers a minimum of three loyalty offers per customer, per month. The offer shown is based on both the value of the customer and the projected ROI – which are both calculated by Pega. In addition, they also use Pega’s Dynamic Offer Management to automatically control inventory shut off when offers have sold through.

The Results

British Gas has seen an unprecedented response to its new rewards program – smashing their target on member enrollment. Notably, their first push email resulted in the company’s highest click through rate (CTR) on record.

Other results include:

  • Increase in retention
  • Increase in Net Promoter Score (NPS)
  • Increase in holdings for loyalty members

Related Resources

Learn more about how British Gas develops intelligent customer conversations.

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Tags

Challenge: Customer Lifetime Value Industry: Utilities Product Area: Customer Decision Hub Product Area: Marketing