Manufacturer: Building Loyalty
A Customer Loyalty Program Breaks the SPIFF Mold and Increases Sales with Non-Cash Incentives.
The Client and Their Past State
The Client
A national lighting manufacturer
The Audience
Distributors and contractors in the channel.
The Objectives
- To more effectively foster long-term loyalty among distributors and contractors.
- To grow brand awareness within their market.
- To drive business insights and analytics.
- To roll the company’s multiple incentive programs into one umbrella structure
The Challenges
- The Client’s SPIFF and rebate program didn’t differentiate from competitors, and the audience had grown to expect those rewards, leading to a drop in engagement.
- Moreover, the existing program had become unwieldy, outdated, and an administrative burden and needed a total modernization overhaul.
The Client’s Current State and Key Results
Participation Boom
258% increase in participation from the selected audience.
Increased Sales
Customers in the program were responsible for a 32% YoY sales increase.
Above All Others
Customers in the program sold 6 times as much product than non-participating customers.
A Buffer Against a Bad Year
During a downturn for the industry, award-earning participants increased their sales by 67% on average.
Segmented Marketing
80% of participants provided information to be used in future marketing and segmentation efforts.
Scalable
The client was able to roll dispersed programs into one streamlined umbrella program.
Added benefits
With the new program, the client was able to push higher margin products to a captive audience, helping to improve the perception of their brand to the market.
How They Got Here
Program Design
The client had previously been managing their program in-house, leading to an overburdened administrative team with limited to no reporting capabilities. To help the client achieve a more streamlined, engaging program, HMI shifted the program from its traditional mail-in claiming method to an automated process, leveraging communications through the program website, email, and video.
The program targeted 930 principals across distributors, dealers, home centers, and remodelers. Principals in the program earned points for every dollar spent to be awarded once they exceeded a goal based on their previous year’s sales. Upon reaching this goal, principals earned at an accelerated rate. Once the principals had reached their sales goals, they were able to redeem their points for thousands of non-cash rewards. Supported by HMI’s program management team, the program also offered sales tracking and reporting and data & analytics on behaviors and sales.
Strategy & Implementation
‘To help modernize the program, HMI implemented a series of changes to its structure and design. These changes included:
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- Updated UX and branded web experience
- Registration management
- Ability to add and edit content on program site
- Ability to add new program features like training, gamification, and other promotions
- Additional reward options
- Customer service
- Most importantly, HMI offered much-needed data and analytic updates that allowed the program to offer sophisticated insights on participant behaviors.
Assisted by marketing and technology, the program’s rebrand offered…
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- A branded website, designed to fit the client’s needs
- Video marketing and program tutorials
- Full-Color Print Brochures
- An extensive email campaign
- Program letters, written and personalized
- Monthly Reward Statements
