Distributor: Creating More Top Customers
A multifaceted distributor, Dakota Supply Group, uses a points program to move the middle and gain wallet share of their customers.
The Client and Their Past State
The Client
Dakota Supply Group, a large, multidisciplinary distributor of electrical, HVAC, plumbing, and water works.
The Audience
Key contractors of small- to mid-sized accounts.
The Objectives
- Move the middle so contractors purchase from them instead of competitors
- Gain wallet share of their mid-tier customers.
The Challenges
To boost competitive advantage against their competitors.
The Client’s Current State and Key Results
Becoming Top Performers
2.6% of accounts that participated contributed 34% of client’s sales
Highly Engaged
Sales of participating accounts increased by 25% compared to those who did not participate.
Growing Sales
Overall sales increased 29% from the previous year
High Return
Those who hit the goal showed a projected ROI of 1101%
How They Got Here
Marketing
Program Design
To achieve Dakota Supply Group’s objective, a seamless goal-based points program was designed for their key contractors to engage with. Participants were offered the opportunity to earn points for purchases toward their goals.
Goals were based on the average purchasing behavior of each individual participant over the past three years.
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- Participants earned 1 point per $1 on all purchases made up to the stated goal and 4 points per $1 on purchases made over the annual goal.
- Points were awarded monthly and stored in an unusable state until the participant hit their goal, which was reset annually.
- This way, if a contractor never hits their goal, the client is saved by not needing to award points.
Strategy & Implementation
eCommerce Promotion
To increase utilization of their eCommerce platform, participants who made purchases on the client’s website would earn an additional two points per dollar.
Award Opportunities
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- Electronics
- Recreation & Leisure
- Tools & Hardware
- Lawn & Garden
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