Case Study:
Data-Driven Offers Based On Historical Sales Deliver Impressive Results
CLIENT
Wholesale distributor and installer in the home building industry.
THE CHALLENGE
Our client was having challenges with soft quarterly sales. They were looking for ways to drive incremental sales across their customer groups.
KEY RESULTS
Segmenting program participants into groups based on sales volume ensured attainable targets for all. The campaign generated
75:1 ROI.
Background
Our client reached out for help growing their customer loyalty. They already had a rewards program in place, but it was not producing the expected results and was demanding on internal staffing resources. They were having challenges with softening sales and were looking for ways to engage their customers to meet or exceed sales targets.
The distributor chose Lift & Shift for our experienced full-service channel rewards and incentive solutions. They particularly liked our data and analytics expertise and how it could help them identify unrealized sales opportunities and increase the lifetime value of their customers.
Solution
Lift & Shift recommended a performance-based reward program with the ability to add in tactical initiatives based on data-driven insights. An effective way to drive profits is through a data-driven offer, based on the historical purchase behavior of participants in a reward program.
For their initial data-driven campaign, Lift & Shift analyzed our client’s historical sales data and launched a targeted two-month initiative offering members 2X points for achieving stretch sales goals based on their individual purchasing patterns. This personalized approach made the goals both appealing and attainable. The campaign was promoted through dedicated emails, personalized assets in their monthly account summaries, and dynamic content on the rewards website—delivering clear, business-driving objectives to each participant.
Lift & Shift Services Used
Results
The campaign exceeded all client expectations as we saw participants in each segment achieve and exceed their growth targets. There was no risk to the client with this promotion as the bonus points were only realised if thresholds were achieved.
Sales Pay for Program Costs
The program drove over $2.5 million in customer sales growth vs reward costs of only $10,000.
Strong Impact
ROI - Total Sales
Program ROI of over $75 in additional Gross Profit for every $1 in rewards earned by participating customers.
Success repeated: Our client has continued to utilize data-driven insights to design and plan subsequent campaigns, yielding equally outstanding results.