Description

AGENCY: Direxions
CLIENT NAME: CEAT Limited
Campaign started: 04/01/2021
Campaign ended: 06/30/2021
Created at: August 25, 2021

BRIEF

CEAT is one of India’s leading tyre manufactures. The brand mainly focuses on direct dealers and they assign distributors to manage their sub dealers. The brand did not have a direct connection with or even contact information of the sub-dealers.They wanted to foster a closer connection with them to facilitate an increase CEATs in share of heart, mind and wallet.

For this, the brand approached us to build a loyalty program, which was to be piloted in their smallest and weakest zone, West 2. Of the 6 zones in India, this zone only contributed to 7.5-8% of their national sales and they were keen on seeing an increase in the same.

STRATEGY:

In order to achieve this, we conducted in-depth interviews with various internal and external stakeholders to understand the market. Based on the findings, we developed a tiered program wherein the members had various point earning opportunities and point redemption opportunities and launched the same.We built a contactability module and collected information of all their sub-dealers. We successfully verified and enrolled 95% of them into the system.

We launched a target based sales contest, “Shubh Aarambh” which means “New Beginnnings”.
The objectives:
•Keeping up the growth momentum of top performers
•Arresting de-growth in under-performers
•Motivating fence-sitters to upgrade to higher tiers

Our target setting methodology:
•Set targets by analyzing momentum patterns in two preceding quarters
•Individual customized targets that build on the SD’s momentum and capacity
•Assigning Quarterly targets but also breaking them down into monthly targets

The contest had 2 kinds of rewards:
Monthly target achievement rewards:
•Target bonus points on target achievement over and above base points that members earn on every sale.
Quarterly target achievement rewards:
•Top 10% of over-achievers win grand prizes

Communication nudges were data driven and in regional languages:
•Special nudges for activation of members doing zero-business
•Fence-sitter communication: members who met 75-99% of their target
•Nudges based on target achievement
•Nudges for members who have overachieved in prior months but are currently lagging behind
•FOMO SMSs for members who are close to accumulating sufficient points to redeem a popular & widely desired reward
•Nudges to the Territory Leaders and Regional Managers to push members who are not performing at their true potential.
•Apart from SMS communication, web pages were also created on the program website for contest information and for weekly & monthly leaderboards

RESULTS:

The West 2 Zone had a historical average contribution of 7.5% – 8.0%

Quarterly Zonal Contribution:
•Despite lockdowns in April & May, the contest bumped up the current quarter zonal contribution to 8.6%
•This contest quarter hit a higher zonal contribution than the previous quarter with an increase of 0.2% as well as that of the same quarter in the previous year with an increase of 1.1%

Monthly Zonal Contribution:
•In the previous financial year, June was the best month with a record zonal contribution of 8.5%. However, in June 2021 the monthly zonal contribution reached a new record high of 9.6%

Overall Sales growth over the same quarter last year was 65% and over the same quarter in 2019 was 44%

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