Outperforming market trends by driving incremental sales through accelerated rewards.
The Big Picture
Coming out of a sluggish economy more than 30 years ago, a nationally ranked electrical distributor wanted significant growth and brand recognition within the industry. After analyzing their business, as well as industry benchmarks and sales data, we collaborated to develop a program structure to drive incremental sales through accelerating reward opportunities to keep customers engaged. This program started pre-internet and evolved into a digital era over a 20 year timespan.
Using industry specific data, we built a custom solution focused on our understanding of the participants.
We segmented their 100,000-customer audience into three groups and then assigned the top 20% individual growth goals based on their segment and past purchases. We kicked off the program with a fast start sweepstakes to engage customers quickly.
Using projected sales growth, our client secured vendor funding to help pay for the program. With the evergreen program structure, participants created a sustained growth pattern year over year.
Individual branch locations received regular program communications and activity reports. Those purchasing over goal had accelerated reward opportunities. we offered a wide variety of award redemption options to keep top performers engaged in the outcome each year. including multiple travel programs and an option to buy-in.
Over a span of more than a decade, revenue growth for enrolled customers outperformed non-enrolled and industrytrends in up, flat and down markets. ROI was more than 200% and our client realized significant market share growth. Extraordinary vendor participation substantially paid for program costs and those vendors also increased their own customer count.
By creating an evergreen program that continued year after year, we were able to establish a base line purchase level for each customer and then assign a growth goal each year afterward. This created sustained growth over the life of the program for each customer wanting to achieve the top tier travel award each time it was offered.