Cake campaigns allow retailers and brands to set up acquisition and/or loyalty campaigns with accurate targeting based on previous purchase behavior. Let’s take a closer look at LUKOIL’s campaign.
LUKOIL was one of the very first commercial partners of Cake and has been running successful campaigns since the launch of the Cake app in the beginning of 2020.
With over 5000 fuel stations, LUKOIL is active in more than 20 European countries. In Belgium, LUKOIL has 180 fuel stations.
LUKOIL always guarantees the most competitive prices at the pump, without loyalty cards or complicated points systems.
LUKOIL has 2 types of campaigns running in Belgium.
An acquisition campaign where a discount is granted to new LUKOIL customers. These were defined as Cake users who did not make any payment at LUKOIL in the last 3 months. The cashback discount that these new users receive on their first refueling varies from €1 for a payment over €30 and rises to €4 for a payment over €70.
Additionally, a loyalty campaign is also running permanently.
All Cake users who have already made a payment with LUKOIL in the past will receive a cashback discount of 0.75% on every refueling starting at €30, with a total maximum of €0.75 per refueling. LUKOIL does not have its own loyalty card or system and this allows them to test the effects of a loyalty campaign in a very easy way.
The commercial partner determines the conditions that apply to get a cashback Reward. This depends on their own goals. Based on those conditions the Cake app will automatically screen all anonymized bank transactions. If you as a Cake user, based on your transactions, fall within the target group then you will get to see the Reward offer in the app.
Campaign performance: Acquisition
✅ 4,3% Conversion
Given the targeting set by LUKOIL, about half of the total Cake user base was a potential new customer at the start of the campaign. These users were therefore shown an offer from LUKOIL in their Cake app. Of all users who received the offer in 2021, an average of 4.3% converted to a purchase.
✅ 28 ROAS
Cake works on a no cure no pay basis. As a partner, you only pay for the conversion of new customers who actually use the offer. For LUKOIL this resulted in a ROAS (Return on Ad Spend) of 28. This means that for every €1 invested in the campaign, a turnover of €28,4 is realized.
✅ 10% Market share growth
The acquisition campaign also delivered a clear growth in market share. The market share within the Cake user group increased by more than 10% in one year.
Campaign performance: Loyalty
✅ 33,5% Conversion
Of all users who received the offer in 2021, an average of 33.5% will convert to a purchase.
✅ Increased customer loyalty
The group of loyal LUKOIL customers (at least 7 out of 10 purchases at LUKOIL) is larger among users who received the cashback offer than among those who did not yet receive the offer (15% vs. 9%).
✅ Less churn
Thanks to the loyalty campaign, LUKOIL has also managed to bring its monthly churn to a lower level than that of its competitors. LUKOIL has more customers who revisit within the 90 days than its main competitors.
Thanks to Cake, we now have a better and valuable insight into our customers’ behavior. Moreover, we have a very easy way to attract new customers and thank loyal customers with an additional discount on top of our already low prices.Ivo Hoskens, Deputy Manager LUKOIL Western Europe
In order to boost the running campaigns, LUKOIL decided to also give extra visibility to this campaign in the Belgian fuel stations. From mid-February until the end of April, a co-branding campaign was set up together with Cake; various materials were used, including banners, flyers, pump toppers, displays and windmasters.
For LUKOIL customers, installing the Cake app is an opportunity to enjoy an automatic additional discount with each refueling on top of already advantageous LUKOIL prices. New customers were triggered to discover LUKOIL and Cake through the discount via large banners at the entrance of the 180 LUKOIL stations.
For LUKOIL, it is beneficial to have as many of their customers as possible use the Cake app. After all, this allows for the analysis of user profiles and customer behavior through Cake Insights.
At Lukoil, we are always looking for ways to attract new customers and reward existing customers for their loyalty. Cake offers a unique platform that gives our customers an immediate benefit on top of the low Lukoil prices.Els Ruyssen, Marketing Manager LUKOIL
The campaign had an amplifying effect on the already positive results of the ongoing cashback campaigns.
In the chart below, we see that the customers attracted by the campaign in February, March and April afterwards also refueled significantly more at LUKOIL than at competitors.
Due to success, the campaign was repeated in the summer of 2021.
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