Article

Sales and Marketing Strategies and News, June/July 2003

"Web Drivers"

All Star Incentive Marketing drives Bendix installers to the Web

How do you grow a program and save money while getting customer buy-in? “Make the solution as easy and appealing as possible. Analyze your audience and give them what they want,” explains Gary Galonek, All Star Incentive Marketing’s Executive Account Manager. And that’s exactly what Sturbridge, Mass.-based All Star did for Bendix Brakes when it transitioned its long-time clients’ annual Box Top loyalty program online in 2002.

It began in 1995. To reward installers who regularly use and sell Bendix brake parts, and to encourage additional Bendix market penetration, All Star worked with the company’s tri-brand management team (at the time, Bendix, Fram and Autolite) to develop the Box Top Incentive Program. Installers were rewarded for using Bendix brake parts by earning points when they mailed in Bendix box tops. They could redeem points for merchandise in All Star’s custom Choices award catalogs; All Star stocked and fulfilled the incentive products. Shannon Kelly, Marketing Services Manager for Bendix Brakes notes, “All Star’s concerted efforts to customize the Bendix promotion and select electronics, home goods, games and personal accessories that motivate installers were the core of this loyalty program’s initial success.”

In 2002, Bendix contacted All Star to streamline the Box Top promotion. “Historically, this program has been popular among our installers. Our goal last year was to make it more powerful than ever before while reducing overall program costs. An online database seemed to be the best solution,” explains Kelly.

Generating excitement about the program re-launch was necessary, but some were concerned about installers’ resisting an online program. Gary Galonek of All Star clarifies, “When Bendix approached us about creating a Web-based component to its Box Top Loyalty program, we needed to consider how receptive installers would be to shopping online. We also needed to consider whether or not installers would have appropriate Web access. With more people online everyday and installers relying more heavily on online applications, we decided to move forward aggressively but with a solid back-up plan for offline diehards.” With that in mind, All Star developed a Web-based solution with a complementary offline drive.

The new Bendix Online Box Top Program launched June 1, 2002, and consisted of integrated online and offline components. Targeting in excess of 2,500 Bendix installers and 790 warehouse distributors, All Star sent an award catalog teaser to announce the new online program. The catalog and an accompanying introductory letter detailed the online benefits: a greater selection of awards, easier box-top redemption, point banking and purchase tracking. The program was also promoted by a team of more than 50 sales representatives motivated by a program that rewarded those who signed up the most new installers. Although the push of the teaser catalog and letter was to get installers to register for the program at www.bendixincentives.com, All Star also made sure to include offline registration and order forms. Offline participants could select merchandise from the teaser catalog but were reminded that they could create an online account at any time during the life of the program, giving them access to more than 1,000 reward choices across multiple product categories. Installers who registered online received 100 free bonus points automatically credited to their new account.

After only six months with the Web-based Bendix loyalty program in play, All Star knew it had a receptive audience. Galonek says, “Installers from across the country are participating, and our data shows that more than 90 percent are registering online.” Galonek explains that creating the offline pieces to educate installers about the ease of online registration and redemption was key. All Star also provided customer service representatives would do the initial online registration on behalf of interested installers.

When asked about overall program satisfaction, Kelly remarks, “We know we are getting a bigger bang for the buck and will be able to validate with real data at the close of this program. In the interim, we benefit from the vital sales and marketing data garnered from the loyalty program’s opt-in registration. That’s one of the key benefits of the Web-based solution—it allows us to easily collect data and quantify our marketing programs.” In addition to opt-in reporting, All Star provides reporting that identifies top performers in the incentive program by points earned; point redemption based on states and regions, enabling geographic trending; and points redeemed by manufacturer and product category, helping management teams identify products and brands that motivate target audiences.

Galonek continues, “The benefits of online programs seem as endless as the rewards offered. From a customer service standpoint, the Bendix Online Box Top Program is now more engaging and secure, building momentum and loyalty throughout the program. From a participant standpoint, the appeal of banking points over the course of the program and a wide selection of merchandise awards is difficult to beat. Accumulating points towards big-ticket rewards keeps participants interested in a program. They’re actually working towards something, they’re staying motivated. And that’s one of our main goals because that motivation translates into brand loyalty and increased sales.”