Reward program participants grew sales 5 times more than non-reward earners
Lift & Shift launched a reward program for a client in the home & building services industry in January 2018. Their first annual program review offered some terrific insights regarding program impact.
From 2017 to 2018 the review showed:
Rewards drive sales growth
Reward-earning customers grew sales over 5X more than non-reward customers (71.5%) vs (13.7%).
New customers are drawn to reward programs
New customers made up 29% of their reward earners database.
Rewards help boost total sales
Reward earners’ (existing & new customers) total spend was 17% more than non-reward customers.
The company took a closer look at customers whose sales declined significantly from 2017 to 2018 and noticed that many were smaller customers; those the sales team didn’t focus on closely. Seeing how a rewards program can significantly increase revenue, they are now making a concerted effort to encourage broader program participation, using bonus offers to motivate greater sales.
Going forward, the client plans to communicate more often with Reward Members, reminding them of program benefits, and providing their sales team with each customer’s reward balance each month. This information will enable the sales team to generate excitement with participating customers, and generate interest and enthusiasm with other customers who have yet to join the program.
The client is also looking at what other branches in their business mix to include in the program, leveraging reward impact across more of their total sales.
They are also considering adding reward tiers based on purchase growth, where their best performers will earn rewards faster.
We are excited with the direction this program is taking and look forward to working closely with our client to encourage optimal participation. You can do the same. Contact your Lift & Shift account manager for recommendations.