Case Study:
Driving Incremental Sales for In-House Brands Generates ROI of 300%
CLIENT
A large U.S. distributor of off-road and 4x4 aftermarket accessories. It launched its rewards program in 2017.
THE CHALLENGE
To create greater awareness for its in-house brands to better stand out in a competitive marketplace.
KEY RESULTS
Higher incremental sales among program members with over 50% taking advantage of the offers.
ROI over 300% each month.
BACKGROUND
Our client is a national distributor in the automotive aftermarket.
With buyers being exposed to more options than ever before, especially online, our client wanted to raise the profile of its four in-house brands to better stand out in the market and add stickiness to the relationships they were forming with both existing and new customers looking for product.
The distributor already had a tiered growth incentive program for key customers in place. Reward program members earn additional reward points when they buy more in the current month than they did in the same month the previous year.
STRATEGY & IMPLEMENTATION
Lift & Shift created a three-month campaign to drive the incremental sales of our clients four in-house brand products with an accelerated earn rate to motivate customers to purchase more than they did last year. The desired spend stretch was +15%.
RESULTS
Our client quickly and efficiently built sales and market share with downstream customers using Lift & Shift's proprietary Distributor Data Direct platform.
Program loyalty
Over the three months, reward members consistently outspent non-members
Increased customer purchasing
Top quartile members spent 7%-21% more than non-members
High participation
Participation by reward members was consistently high. Approximately 50% of reward members participated in the bonus offer.
Significant ROI
Our client enjoyed a fantastic return on investment using this tactic, with over $300 in brand sales for each $1 invested in the bonus offers.
