Examples

Below are examples of how clients benefit from our incentive and loyalty program design expertise, user-friendly RewardTrax® technology, and rich rewards offering. For more information on our Customer/Channel Loyalty, Employee Recognition, and Sales Incentive offerings click here.

 

Customer / Channel Loyalty Programs

  • Situation: This national manufacturer of commercial plumbing products based in the Midwest was looking to build loyalty among their end users, while protecting their distribution channel relationships.
  • Solution: Loyaltyworks developed a program that targeted end-users, while effectively protecting the manufacturer’s strong relationships with their distribution channel partners. To date, the loyalty program has accumulated a database of over 7,500 active participants from across the U.S. and Canada, who can be communicated with and marketed to. This program has become an important tool in helping the manufacturer’s distributor partners sell more product as well. The program is five years old and still growing.
  • Situation: A leading national insurance company based on the East coast wanted to move from a cash program to a non-cash program, toward growing loyalty and sales among independent agency principals and their customer service representatives.
  • Solution: Loyaltyworks developed an innovative agent loyalty program that is now in its fifth year. With more than 1,100 active participants, the program has experienced extremely high engagement and reward redemption levels. It has proven to be effective not only in terms of meeting company objectives, but also has resulted in improved guidelines compliance and in enhanced loyalty among their independent agency customers. Further, the program overall has become a critically important piece of the carrier’s agency partnership strategy, driving tremendous incremental traffic to their agent-focused Web site.
  • Situation: A large distributor of building construction products wanted to reward their builder and contractor customers with a loyalty program. They were in a very price and rebate sensitive market, and so stated their critical need for a compelling unique “currency” that could not be duplicated.
  • Solution: The three-year-old program with Loyaltyworks has become a true competitive differentiator. With all other buying considerations being equal, this distributor successfully has leveraged the program to secure more orders in a competitive, rebate-driven environment. Overall, the distributor has increased sales and bolstered customer loyalty as a result of the program. Loyaltyworks also facilitated a recent participant survey that yielded key learnings to further strengthen the program.
  • Situation: A national leader among independent tire distributors wanted to reduce costs, enhance customer service and improve loyalty by transitioning from the telephone to an online ordering process. However, many of their dealers were hesitant to switch, as they were quite comfortable placing their orders by phone. Many also were simply unaware that the Web site even existed.
  • Solution: With the help of Loyaltyworks, the distributor created a rewards program for their dealers to promote the Web site and encourage online ordering. Dealers earned points toward a wide selection of travel and brand name merchandise for every purchase made through the Web site. Within 15 months, the number of registered users to the dealer’s Web site tripled and online sales multiplied tenfold. Now in its fourth year of the program, the tire distributor continues to enjoy significant cost savings and stronger, more loyal dealer relationships.

Employee Reward & Recognition Programs

  • Situation: One of the nation’s largest owner/operators of apartment communities needed to combat high employee turnover, while reinforcing resident-focused behaviors. Some of the individual properties had used cash or gift cards to reward employees for exemplary performance and tenure. The company acknowledged that it needed a centralized, company-wide program; yet, with well over 1,000 properties and 7,000+ employees, they had never attempted such an undertaking.
  • Solution: After gaining a thorough understanding of the company’s situation and needs, Loyaltyworks designed and developed a company-wide employee reward and recognition program that they currently manage. Each human resources director – at the owner/operator’s 130+ operations centers throughout the country – is given a budget and the freedom to determine in their respective regions how employees earn points. Employee participants range from property managers to landscape technicians.

They accrue points and redeem from a selection of over 7,000 travel and brand name merchandise rewards. Awards are given out at lower point levels, so rewards like books, CDs and DVDs are a huge hit – Over  50% of the participants’ redemptions come from those items. The program’s success also lies in its dedication to relevant reward criteria and Loyaltyworks’ flexible rewards platform, which allows for centralized management and regional control.

  • Situation: To fend off the fierce competition in attracting and retaining quality health care professionals, this South-eastern U.S. hospital needed an innovative way to promote loyalty among their 1,400 full-time employees. They previously had used traditional jewelry awards to recognize their employees’ years of service to the organization.
  • Solution: Loyaltyworks revived the legacy program by significantly enhancing the award value proposition. We’re also working with the client to add flexibility to the reward structure by allowing managers to award points on-the-spot to employees for going “above and beyond” in exhibiting cultural values or demonstrating excellent performance. Employee feedback has shown that they love the choice of thousands of reward options, and response across the board has continued to stay high.
  • Situation: A division of a leading global manufacturer of technology products and services needed an employee rewards program that would cost-effectively drive incremental sales, while positioning themselves as a proactive supplier to their customers.
  • Solution: Loyaltyworks collaborated with the manufacturer to develop an incentive program that awards employees with points (towards travel and merchandise) for incremental products and services sold. Program participants include 1,400 of the company’s service technicians who install and maintain electrical equipment. While on-site, the technicians are encouraged to look for additional appropriate products and services company could provide for the customer. When the technician submits a job that meets specified criteria, he/she earns points. Every job submitted is subjected to a three-part authorization process facilitated through the program’s Web site. Participants can earn additional points by completing training modules through the site as well. The program has been running successfully for more than two years, and plans are underway to roll it out to two more divisions in the company.

Sales Incentive Programs & Promotions

  • Situation: An international manufacturer, selling to the electrical wholesale industry and with U.S. operations based in the Midwest, turned to Loyaltyworks to help them increase sales over a five-week stretch of their fiscal 4th quarter.
  • Solution: Loyaltyworks developed and implemented an extremely successful promotion – based on achievement of performance plateaus – that resulted in a 25% increase in 4th quarter product sales; all the while maintaining margin on that revenue. The promotion drove increases across the manufacturer’s customer base. Larger customers increased pallet purchases by as much as 50%.
  • Situation: To fend off the fierce competition in attracting and retaining quality health care professionals, this South-eastern U.S. hospital needed an innovative way to promote loyalty among their 1,400 full-time employees. They previously had used traditional jewelry awards to recognize their employees’ years of service to the organization.
  • Solution: Loyaltyworks revived the legacy program by significantly enhancing the award value proposition. We’re also working with the client to add flexibility to the reward structure by allowing managers to award points on-the-spot to employees for going “above and beyond” in exhibiting cultural values or demonstrating excellent performance. Employee feedback has shown that they love the choice of thousands of reward options, and response across the board has continued to stay high.
  • Situation: An electric utility giant wanted to convince small-to-mid-size restaurants to choose electric cooking equipment over gas. Despite many past attempts – including cash rebates to the restaurants – their customers consistently chose gas-powered cooking equipment over electrical appliances.
  • Solution: Loyaltyworks recommended a new strategy targeting equipment distributor sales representatives who influenced the restaurants’ purchasing decisions. Distributor salespeople earned points for selling and installing electrical cooking equipment in new and existing restaurants. Points were redeemable for a range of top quality merchandise and travel rewards. Within six months, the utility company had doubled its annual sales goal and saw a 290% return on investment. Thanks to the program, they also spent less than half of their previous incentive budget (which led to an 80% cost reduction), and initiated the installation of thousands of new electrical cooking units.
  • Situation: Stiff competition led to flat sales for this Northeast-based wholesaler of plumbing, hydronics and other products. While they had enjoyed some success with a group travel incentive for their top customers, they were looking for a more cost-effective and comprehensive promotion to support their goal – achieving a 9% increase in their residential plumbing division.
  • Solution: Instead of just targeting top tier customers, Loyaltyworks worked with the wholesaler to focus on a select group of small-to-mid-size contractor customers in a level-based rewards promotion. For a three-month period, participating customers earned points for purchasing from among fourteen named product lines. After the promotion concluded, the customers redeemed their accumulated points for a selection of travel and merchandise rewards. The results exceeded expectations. Sales of the specified product lines increased 14% over the previous year, and the wholesaler enjoyed greater than a 4-to-1 return on investment.
  • Situation: Cash rewards have been the norm for banks involved in dealer finance. This Midwest bank needed to engender loyalty from finance managers, but wanted no part of a cash play.
  • Solution: Loyaltyworks helped them create their own points currency in a loyalty program targeting F&I managers. The program has seen enrollment top 2,000 participants over the course of five years, and has proven to improve dealer loyalty: Year in and out, the average individual participant has been awarded an increasing amount of program points. Participants also appear to be engaged, as seen through their high redemption levels. In fact, more than 80% of target participants have redeemed points for rewards, with increasing interest in rewards at lower point levels, such as books, DVDs and music. The program continues to meet – and exceed – the bank’s success measures, and continues to give them a competitive advantage in the marketplace.
  • Situation: A large regional food service distributor found that they had unused vendor promotional funds at the end of the year. The client wanted to take advantage by using those funds and promoting their vendors. The promotion could create an opportunity not only to drive incremental revenue but also to give vendors more mind share end of year.
  • Solution: To help the distributor achieve their objectives, Loyaltyworks created a Web-based, vendor-funded promotion, where customers were awarded points for their purchase of eligible products. Participants included customers as well as the client’s marketing associates and sales managers. The promotion Web site included: An online activation process to help clean up customer data; program rules & updates; and a complete rewards shopping experience for promotion participants. Participants had access to a range of online & printed communications on the program and eligible products. Results showed that the promotion directly increased sales among program participants and improved the distributor’s relationships with many of their customers.

Umbrella Programs

  • Situation: Before several large competitors began moving into their region, this supplier of construction equipment worked with Loyaltyworks to develop a points-based loyalty program to reward their key customers. Within six months of program launch, sales among the 600+ participating customers increased by 40%. Impressed with those results, the company set out to enroll as many of their customers in the program as possible. To accomplish this, they needed the support of their employees.
  • Solution: Loyaltyworks designed and implemented a five-month promotion that rewarded the supplier’s salespeople for generating customer enrollments into the loyalty program. Salespeople earned points for every customer they signed up. In short order, the number of enrolled customers jumped 215% to more than 2,000. Based on the success of the promotion, and their channel loyalty program developed and managed through Loyaltyworks, the supplier launched a recognition and rewards program for all of their full-time employees. Feedback on the employee program was so positive that it became a recognized part of the company’s culture.
  • Situation: After years of using cash incentives to reward their employees, this national manufacturer wanted a more efficient, cost-effective and engaging way to acknowledge their employees and promote loyalty.
  • Solution: After developing a successful dealer incentive program, Loyaltyworks was asked not only to develop and manage the manufacturer’s employee recognition program, but also to tie both programs to a common points currency on a single platform. This move has allowed the company to manage all of their incentive and loyalty initiatives through one source, and Loyaltyworks has helped them breathe new life into their employee program. While the employee program’s core structure remained essentially the same, excitement surrounding the program has increased significantly as employees have become more engaged… motivated in part by their new selection of over 7,000 travel and brand name merchandise rewards. The manufacturer also has enjoyed a significant cost savings by transitioning from a cash program to a non-cash rewards program.
  • Situation: Loyaltyworks helped this large Midwestern plumbing, electrical and HVAC equipment distributor increase sales and establish a significant competitive differentiation with a loyalty rewards program for their builder and contractor customers. Based on this success, the distributor wanted to use the same unique non-cash “currency” to recognize and reward their employees
  • Solution: Leveraging the core platform used for the loyalty program initiative, Loyaltyworks collaborated with the distributor to implement a recognition program for their employees. Managers have the freedom and flexibility to award their employees points on-the-spot for demonstrating behaviors that support the distributor’s business objectives. The ability to manage both incentive initiatives on the same platform saves the distributor time and money and both programs are thriving.
  • Situation: A leading national manufacturer of building products based in the Northeast had been running a customer incentive program, using travel certificates as rewards. The program proved too mistake-ridden and burdensome, as it involved a manual process of data reconciliation and certificate issuance.
  • Solution: The company turned to Loyaltyworks, which re-designed and re-launched the once-ailing program into an amazingly successful one, where participants must buy products from multiple divisions to qualify for travel and merchandise rewards. Compared to the old program, the new one offered a much more compelling overall reward mix. Loyaltyworks also streamlined the reward process, making the participant’s experience more enjoyable. Key to the program’s success has been Loyaltyworks’ ability to tie all participating divisions under a single points program through the company’s flexible, scaleable RewardTrax® platform.