Loyalty Playbook for Cactus Luxembourg
Transforming customer loyalty through SAP's integrated Loyalty Management and SAP Engagement Cloud ecosystem
Discover the Solution
Strategic Imperative
The Window of Opportunity
Cactus Luxembourg stands at a critical juncture. With 293,000 loyalty cardholders and a strong physical network, the company must modernise its customer engagement before competitors further erode market share. Despite market leadership, customer perception trails competitors like Delhaize, particularly regarding personalised promotions and healthy lifestyle savings.
A significant gap exists between back-office ERP transformation and front-office customer experience. Without a modern loyalty foundation and marketing automation, Cactus cannot deliver behaviour-based offers, flexible reward structures, or unify data across stores, proximity shops, and digital services. The window for action is closing: market leadership is at risk without immediate enhancement of customer engagement capabilities.
Critical Challenges Facing Cactus
Non-Personalised Loyalty
Basic points system lacks flexible reward structures, tiered benefits, and partner integrations that modern customers expect
Disconnected Systems
ERP modernisation progresses, but marketing capabilities remain siloed from transactional data
Competitive Pressure
Public perception that Delhaize offers superior value on healthy items and personalised experiences
Time-Sensitive Window
Market leadership position at risk without immediate action to enhance customer engagement
Solution Architecture
The Integrated SAP Ecosystem:
SAP Loyalty + Engagement Cloud
Flexible Loyalty
Adaptable rewards and incentives for customers
Tiered Benefits
Structured levels of rewards for engagement
Real-time Triggers
Instantly responding to customer actions
Predictive Segmentation
Grouping customers based on future behaviour
Omnichannel Orchestration
Coordinating interactions across all channels seamlessly
AI-powered Recommendations
Intelligent product suggestions

SAP Loyalty Management provides flexible reward structures, tiered memberships, and partner coalitions. SAP Engagement Cloud transforms this data into personalised experiences through native post-ERP integration.
The ecosystem delivers 1:1 recommendations and automated triggers across all channels. Combining loyalty mechanics with predictive AI, Cactus transforms from basic points to a personalised ecosystem driving lifetime value.
From Legacy Limitations to Modern Marketing
Legacy Constraints
Manual processes, fragmented data, disconnected in-store and online experiences
Integrated SAP ecosystem
flexible loyalty foundation with intelligent marketing automation for unified omnichannel experiences

Legacy infrastructure prevents real-time customer engagement. The current setup lacks flexible loyalty mechanics and marketing automation for triggers, segmentation, and omnichannel orchestration.
Use Case 1
AI-Driven Healthy Living Personalisation
Before: Generic Mass Communication
Cactus sends identical weekly flyers to all 293,000 members regardless of dietary habits or health preferences, failing to compete with specialised discounts from competitors.
After: Intelligent Personalisation
SAP Loyalty Management creates targeted reward tiers for health-conscious shoppers with bonus points on Nutri-Score A and B items.
SAP Engagement Cloud leverages post-ERP transaction data to identify fresh produce buyers and automatically trigger personalised offers. This integrated approach transforms brand perception from expensive to personalised, countering competitive threats.
Expected Impact
25-35%
Increase in health category purchases
15-20%
Improvement in brand perception vs Delhaize
40%
Higher engagement on personalized offers vs mass promotions
Use Case 2
Predictive Churn Prevention for Proximity Shoppers
Challenge
A frequent shopper at a Cactus Shoppi gas station or proximity store begins visiting less often, but the legacy system provides no visibility or automated response until the customer has already churned to competitors.
Solution
SAP Loyalty Management tracks member tier status and lifetime value, while the SAP Engagement Cloud AI engine monitors individual purchase frequency continuously. When a high-value shopper shows declining engagement signals, the system automatically triggers a 'We Miss You' campaign featuring tier-specific benefits and dynamic discounts on their most-purchased convenience items, protecting revenue before migration occurs.
Expected Impact
60-70%
reduction in high-value customer churn
3-5x
ROI on retention campaigns
25%
increase in proximity store visit frequency
Use Case 3
Integrated In-Store Digital Experience
Current State
Previously, in-store staff had no information about a loyalty member's preferences or recent online browsing history, leading to missed opportunities for high-touch service and personalised recommendations.
Future State
Integrating the SAP Loyalty Management and SAP Engagement Cloud ecosystem with the InStore App provides staff with:
01
Real-Time Customer Insights
Loyalty tier status, points balance, and purchase history at fingertips
02
Personalised Recommendations
AI-powered product suggestions based on omnichannel profile
03
Tier-Specific Benefits
Exclusive offers and rewards matched to customer status
04
Seamless Experience
Bridge between digital and physical shopping worlds
05
Increased Basket Size
Cross-sell success through informed staff interactions
06
Enhanced Loyalty
High-touch service drives repeat visits and engagement
Projected Impact
30-40%
Increase
in average basket size
85%
Staff Satisfaction
with customer insight tools
20%
Improvement
in cross-sell success rate
Customer Journeys
Customer Journeys That Drive Results
New Resident Welcome Journey
Luxembourg attracts 12,000+ new residents annually. Enroll arrivals with starter bonus points and multilingual welcome series (French/German/English) introducing local sourcing, delivery zones, and Green Points sustainability. First-purchase incentive on fresh produce counters Delhaize's health advantage.
Lapsed High-Value Reactivation
293,000 cardholders with dormant accounts leak revenue to competitors. Flag members with no purchase in 45 days and expiring points. Analyze post-ERP history to identify shopper type, then trigger personalized win-back offers addressing defection reasons: price perception, availability, or convenience gaps.
Cross-Format Shopping Incentive
Most customers shop only one format (hypermarket, Shoppi, or Match). Create bonus point campaigns for cross-format purchases. Identify hypermarket-only shoppers and promote nearby Shoppi for convenience needs, or Match for budget segments, increasing wallet share against format-specific competitors.
Healthy Lifestyle Conversion
Delhaize leads in health perception. Create 'Nutri-Score Champions' tier with accelerated points on A/B-rated and bio-certified items. Identify conventional produce buyers and trigger educational content about organic selection, followed by targeted discounts. Quarterly health challenges reposition Cactus as wellness partner.
Journey Performance Benchmarks
45-55%
Open Rates
on triggered journeys (vs 15-20% batch campaigns)
8-12x
Higher Conversion
on personalised offers
35%
CAC Reduction
through referrals
60%
Revenue Uplift
by automated journeys within 12 months
Success Stories
Proven Results Across Leading Retailers
Salling Group
Denmark's largest retailer
  • 25% revenue growth in 5 weeks
  • 35% increase from automated recommendations
  • 30% improvement in email open rates
Fressnapf
Leading Pet retailer
  • 15% increase in e-commerce sales through automation
  • 100% increase in CTR for automated journeys
  • Unified database enabling lifecycle personalisation
AO
Leading Electrical retailer
  • 45% of revenue driven through automation
  • 150% increase in newsletter engagement
  • 14% growth in opt-in database
ALDO
Global footwear brand
  • Unified e-commerce and point-of-sale systems
  • Improved product discovery and availability
  • Increased loyalty and smoother shopping experiences
Summary Objectives
Key Metrics
Driving Results: Key Industry Insights
Industry benchmarks underscore the tangible benefits of investing in advanced loyalty and engagement strategies, directly aligning with Cactus Luxembourg's objectives for growth and enhanced customer relationships.
80%
Purchase Likelihood
Consumers are significantly more likely to make a purchase when brands offer personalised experiences, directly impacting conversion rates and basket size.
15%
Increased Spending
On average, loyalty program members spend considerably more per year compared to non-members, driving higher lifetime value and revenue growth.
25%
Profit Growth
Even a modest 5% increase in customer retention can lead to a substantial boost in company profits, demonstrating the critical value of loyalty in a competitive market.