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National Manufacturer Increases Sales, Engages Distributors and Boosts Customer Loyalty

Client Profile:

National manufacturer of a broad range of industrial products used in industrial drying, cleaning, and maintenance work.

Situation:

The manufacturer was selling through distributors in a mature market with a recent influx of low-cost competitors. The company needed a way to differentiate the value of its products and services from the competition, and increase customer loyalty and sales.

Solution:

The company partnered with Loyaltyworks to design a customer loyalty program – the first of its kind in their market. The reward program was announced at their Distributor Meeting, and then rolled out fully to their customers 3 months later.

Results:

In less than five years, almost 8,000 customers have joined the program, most of which actively bank and redeem points for electronics, tools, entertainment, travel, etc.

1. They like the huge variety of rewards that they can purchase immediately even with a limited point balance, including DVDs, small personal electronics, movie tickets, books and other merchandise.
2. They are motivated to save up their points for bigger ticket rewards that they can put on a wish list as aspirational purchases.

Data shows that there has been exponential growth over a 12 month period:

  • Enrollments: 39% increase
  • Points Redeemed: 34% increase
  • Points Awarded: 72% increase

Putting Loyaltyworks Technology into Action

The company promotes the program through a special Web landing page that provides access to program registration and login plus an explanation and schedule of points earned for purchasing their products. The point values of products are also listed on product pages for easy reference when customers are making purchasing decisions.

Point certificates with unique serial numbers are attached to product manuals or inserted in the shipping containers for all purchased merchandise.

The points earned can be redeemed for millions of items in an online reward catalog, including merchandise items, travel options, event tickets and the sponsoring company’s products. In addition, participants can also take advantage of the program’s special concierge service; “Uniquely Yours”. This reward technology offers participants a way to use their points to obtain something beyond the scope of the catalog; meaning if they can’t find an item they want in the catalog, the rewards company will work with the customer to procure it.

Increasing Customer Engagement with the Mobile App

As a result of the success of this program, the company has invested in several incentive program enhancements, most notably the recent launch of a mobile app. This app will provide several convenient ways for participants to remain connected and engaged in the program. The features include:

  • The ability for participants to scan their point award certificates via QR codes right from their phones for immediate, on-the-spot access to points eliminating the need for them to wait to input the information into a computer or tablet.
  • The ability to access their wish list, shop the rewards catalog, and utilize UPC code scanning to search for popular retail items in the catalog.
  • The ability to receive important program communications via push notifications.

The program continues to provide a competitive advantage, one that supports the company’s premium quality branding. There’s no doubt that the program has supported the company’s market leadership in a time of increasing competition, and it has definitely generated good will and increased purchase loyalty from the companies distributors.

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