Building market share through contractor loyalty

Tailoring objectives by audience

Creating value up and down the distribution chain was the ultimate goal, so the distributor started with an assessment to establish each audience’s objectives. Through surveys and research, they found many objectives were shared. They focused on the contractors because they had the highest purchase potential.

Growing market share through personalised contractor goals 

Incentivising incremental growth (instead of rewarding current business) ensured a positive ROI. They needed to convince local branch leaders and sponsors to buy in, literally and figuratively, to a self-funding model. 

The solution? Identifying the contractors with potential to increase purchases and assigning them tailored goals. Each contractor’s base goal was based on purchasing a predetermined percentage above their previous year’s purchases. Earnings would only be distributed after they hit the goal, motivating contractors to purchase more while protecting the distributor from massive payouts. Stretch goals also unlocked after the base goal was achieved, keeping up their programme engagement after the initial payout. 

Extending the benefits to all audiences

Growing contractor loyalty affected the other audience types. The chart below shows how each segment benefitted from the programme’s technology, data and unique goal structure. 

Using programme data to maximise impact

Through annual data analysis, ITA Group recommended ideal contractors to invite to the programme, associated goals, reward type and projected ROI, ensuring a turnkey programme. Local branch leaders also had the freedom to target contractors autonomously.

Configuring the technology by audience

The web platform included on-the-go accessibility, segmented views and a simplified user experience. ITA Group currently manages programme administration, lessening the administrative burden for programme owners. 

Motivating with points-based rewards and incentive travel

The rewards that inspire top contractors are often unattainable for middle performers, causing them to disengage. To solve this, the distributor uses two reward types: points-based rewards for most contractors and group travel rewards for high-volume contractors.

Contractor reward options

1. Points-based rewards

Points accumulate with each purchase, tracked via the programme website and printed statements.

Online storefront experience

• Brand-name merchandise and experiential awards
• Thousands of options carefully curated in 10+ categories
• Personalised reward experience according to user interest
• Simple redemption process

2. Group travel rewards

Group travel for high-volume contractors provides fun networking opportunities.

Group travel features 

• Exclusive experiences, daytime activities and evening events
• Strategic pre-event, on-site and post-event communications
• On-site gifting
• High-touch, concierge-style service

Educating through partner marketing

Local branch leaders gain partner marketing that helps them operate the programme without burdening their internal teams. An annual mixed-media campaign supports each local branch, educating leaders on the programme while demonstrating how easy it is to target ideal contractors.

Engaging new contractors

Tailored communications feature elements for “deskless” contractors in the field to maximise participation and goal achievement any time, anywhere.

• 1:1 targeted emails for ad hoc promotions and goal tracking
• Statement mailers featuring progress-to-goal status
• Promotional postcards and mailers
• Mobile site for promotion updates and checking earnings
• Reminders to redeem points
• Promotional items for programme awareness

Growing year-over-year sales for 10+ years

What started as a need to rebound from a recession developed into a long-term contractor marketing programme that continues to drive contractor growth and sales.

For more than a decade, the programme has mutually benefitted all its audiences through stronger relationships, risk-free incentives, enhanced brand awareness and better data visibility. And it continues to evolve, promising even greater success in the decade to come.