CONSUMER SERVICES
Team BigCity - November 28, 2024
Overview
When it comes to car servicing and maintenance drivers have little knowledge or preference when it comes to which engine oil to select for their vehicle. Generally, they trust their local mechanic or workshop to select which engine oil is best to prolong the life and efficiency of their car and aren’t even part of the decision-making process.
Solution
As part of Valvoline’s overall strategy to support mechanics, drive sales and build long-term customer loyalty through the channel, we created the Valvoline Bana Lakhpati. A points-based program to drive product advocacy and awareness by rewarding mechanics and independent workshop owners who promoted and purchased Valvoline products.
The program allowed both mechanics and workshop owners to earn points by scanning coupons on Valvoline products and invoices. Allowing participants to collect points directly via a tailor-made WhatsApp platform where points could then be redeemed against a variety of rewards including cash incentives (NEFT, UPI, Paytm wallet, or Amazon Pay GV), electronics, and other products.
A tiered approach was also incorporated into the program to encourage a higher level of participation. Rewarding higher and more frequent participants with larger rewards and more significant prizes including becoming a “Lakhpati” (someone who has earned at least ₹100,000).
Impact
By creating a customized loyalty program for Valvoline retailers along with a detailed reporting panel for the management, we were able to unlock and harness transaction data to drive far greater product advocacy and awareness through the channel resulting in much higher increased and prolonged sales PAN India. Significantly increasing engagement and on-going participation with independent mechanics and workshop owners.
Our platform is designed to handle both, giving clients full flexibility. Our core B2B/Trade Loyalty programs are long-term strategies, often sustained for an average program tenure of 4 years, focused on building retention and maximizing partner lifetime value. However, we also execute short-term, tactical campaigns—or 'short-burst schemes'—such as scratch cards, lucky draws, and high-sales contests, to drive immediate spikes in sales or achieve quarterly targets.
Success is measured through a set of critical Key Performance Indicators (KPIs) tracked in real-time. These metrics cover two key areas:
1. Financial Outcomes: Tracking Sales Uplift (incremental revenue generated), Customer Lifetime Value (CLV), and Average Order Value (AOV) to ensure financial profitability.
2. Behavioural Metrics: Measuring Customer Retention Rate (or churn reduction), program Enrolment and Participation Rates, and the Frequency of Purchases to confirm that the program is successfully changing partner behaviour.
For well-designed and executed B2B loyalty programs, a strong return is primarily driven by:
• Retention: Significantly reducing customer or partner churn, as retaining a client is far more cost-effective than acquiring a new one.
• Incremental Sales: Ensuring that rewards are paid out only for performance that exceeds existing sales baselines, making the program self-funding based on growth.
• Wallet Share: Incentivizing channel partners to prioritize and sell a greater share of your products over a competitor's.
Our expertise spans a comprehensive range of sectors that rely on robust channel partner and trade networks for success. We routinely power campaigns for major brands in Automotive, FMCG, Retail, Consumer Durables, Building Materials (including cement, paint, and sanitaryware), Electrical Equipment (like lighting and switchgear), Oil & Lubricants, and Pharmaceuticals, Financial Services, Telecommunications, and Technology sectors. Essentially, any business that leverages a network of dealers, distributors, retailers, or third-party influencers—such as mechanics, architects, or contractors—to drive product sales can utilize our fully customized B2B loyalty solutions.
A promotech company specializing in tactical and loyalty campaigns, offering Retailer Programs, Influencer Programs, Distributor Programs, and Sales loyalty Programs. We leverage rewards, engagement-based technology, and loyalty strategies backed by AI and insights.
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