A large, global Fast Moving Consumer Goods (FMCG) brand was managing separate cash-based loyalty programs for its 3 key distirbution channels through different agencies, resulting in a larger investment from the company. This is where BI WORLDWIDE stepped in.
A large, global Fast Moving Consumer Goods (FMCG) brand has one of its prime manufacturing and bottling units. The key distribution channels include grocery stores, convenience stores, and restaurants. The brand was managing separate cash-based loyalty programs for each of these channels through different agencies.
On analysis, it became evident that more than 50% of revenue derived from a base of 150,000 Platinum & Gold partners across these three distribution channels. From these 150,000 partners, only 15,000 were enrolled in the loyalty programs.
To accelerate growth, the brand wanted to increase gross revenue by 25% in two years from these two segments (Platinum & Gold). This meant that they would have to focus on quickly enrolling an additional 130,000 partners and deploy engagement strategies to realise the full potential from these partners.
The brand sought to partner with an expert who could design and deploy scalable systems and processes to achieve multiple business objectives. This is where BI WORLDWIDE stepped in. With independent programs leading to disparate engagement strategies and the cash-based model resulting in a highly transactional relationship, it was time to re-engineer the programs. BI WORLDWIDE therefore designed a consolidated program that was a clear differentiator in this industry.
With BI WORLDWIDE'S flagship Channel Loyalty application, Channel Smart, all three programs were unified under one umbrella to create greater transparency, efficiency and flexibility. The built-in promotions suite was leveraged to design compelling sales promotions and direct them to specific audience groups for maximum relevancy and results. Behavioural Economics principles of Idiosyncratic Fit were used to set individual-level targets while visual dashboards and advanced analytics were provided to maximise exposure to actionable insights and performance results
Cash-based incentives were replaced with reward points that are scientifically proven to be more effective to drive productivity and boost performance. Points are redeemed for high-efficacy rewards such as luxury merchandise and experiences from online marketplaces that were specially curated to suit different partner personas. The rewards redemption process was also simplified to ensure a favourable delivery experience and lasting impression. Participant Satisfaction Scores (PSAT Scores) that capture a partner's satisfaction levels regarding the rewards marketplace, packaging, delivery and query resolution were also implemented via surveys.
To shift the game to a more relationship-centric approach, campaigns that looked beyond sales were launched. Partners are rewarded with welcome bonus and bonus points for exhibiting desired behaviours such as shop displays and account activations.
Using Behavioural Economics principles such as, Loss Aversion, Framing, Probabilistic Outcome and Goal Gradient Theory were leveraged as engagement campaigns such as sweepstakes and leaderboards were launched. Some of these campaigns even involved the partner's family, thereby strengthening the emotional bond between the partner and the brand.
To ensure maximum reach and ensure satisfaction, communication touch points were expanded to optimise partner engagement while an Automated Ticketing System for inbound calls and emails allowed for seamless monitoring to remove lags or any process roadblocks.
“We redeemed an LED TV as a part of the rewards programs. It was always our dream to own one. My family and I are so happy and want to thank the brand immensely”
- Program Participant