Case Study:
Manufacturer Builds Direct Channel to Influence End User Buying Decisions
CLIENT
Manufacturer selling through wholesale distribution.
THE CHALLENGE
Distributors tend to be very protective about their relationships with end users. How can a manufacturer access sales information about their downstream customers when the proprietary data is held by the distributors?
KEY RESULTS
Unit sales growth of 55% through existing accounts and a significant increase in the number of accounts.
Total unit sales were more than 4X higher vs. existing accounts only.
BACKGROUND
For manufacturers in many industries, getting product to market relies heavily on the use of wholesale distributors. The distributors tend to be very protective about their relationships with their end users, resulting in the manufacturers having limited details about who actually buys what, for how much and how often.
This lack of downstream customer data makes the opportunity to run a loyalty program difficult for a manufacturer when the only option is for the end user to submit proof of purchase. This usually results in low program participation.
SOLUTION
Lift & Shift created Distributor Data Direct™ (DDD), where we operate as a black box for sensitive sales information. We act as a secure third party data center, working with the manufacturer and their distributors to aggregate purchaser data and oversee reward earning, while keeping the customer details separate. The result? The manufacturer is able to build a direct channel to influence end-user buying decisions while adding value to its distributor network.
STRATEGY & IMPLEMENTATION
This producer of automotive packaged goods, sells through wholesale distributors. The loyalty campaign targeted two important stakeholder groups:
- retailers who stock their products
- distributor sales teams to help grow accounts in under-developed territories
Eligible reward transactions from each distributor were vetted and approved by Lift & Shift using the manufacturer’s qualification criteria. This enabled the distributor’s customers to benefit from the reward program, driving sales for the manufacturer but without the distributor having to disclose their sensitive customer contact details.
The program featured performance-based incentives, including 5X the points for sales growth exceeding 10% to existing accounts, as well as 4,000 bonus points for opening a new account with a minimum purchase.
PROGRAM BENEFITS
- The manufacturer could directly impact end-user purchase decisions while still maintaining an arms-length distance from sensitive distributor data
- Growth-based offers were an effective tactic for targeting new or under-developed accounts
- Working in collaboration with the distributor's sales team, incentives for new account openings provided a pathway to substantial overall sales growth.
RESULTS
These tactics contributed to unit sales growth of 55% through existing accounts and a substantial increase in the number of accounts. Our client saw total unit sales that were more than 4X higher vs. existing accounts only.
Adding value to the manufacturer/distributor relationship is an often-overlooked benefit of a manufacturer’s rewards program.
Contact us and we’ll show you how our Distributor Data Direct program can benefit your business.