![Steel-Tube-logo-thumb](https://incentivesolutions.co.nz/wp-content/uploads/2021/08/Steel-Tube-logo-thumb.png)
Steel & Tube needed a loyalty programme for its valued customers.
ROI
%
Sales Growth
%
Bonus Points
![st-challenge-thumb](https://incentivesolutions.co.nz/wp-content/uploads/2021/08/st-challenge-thumb.jpg)
The Challenge
Steel & Tube (S&T) is New Zealand’s largest supplier, distributor and processor of steel products, delivering consistent, outstanding services and products nationwide. Founded in 1953, its market has grown exponentially over a more than 60-year tenure.
In 2018, the company recognised that its market was becoming increasingly commoditised, which was placing pressure on client and product margins. It had recently introduced a new ERP system which had impacted its service and delivery while being bedded in. S&T was witnessing a spending decline within certain customer sectors and with no national CRM in place at the time, customer data insights were limited
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The Objective
The primary objectives were to increase sales and return positive ROI, while improving customer relationships. On top of that, S&T was eager to enable up-selling and cross-selling opportunities across its wider product range. S&T also aimed to collect and utilise programme customer data to improve its overall customer engagement and growth.
The Solution
By partnering with Incentive Solutions, S&T was able to launch a new B2B sales growth and customer loyalty programme. Aptly named ‘No.8 Wire Customer Rewards’, the programme was initially targeted towards long-tail / small-to-medium customers within S&T’s distribution division.
The Results
No.8 Wire customers have consistently returned a significantly higher average sales margin than non-programme customers since its launch. Within just two years of No.8 Wire’s implementation, S&T had a number of positive results.
- Sales results alone provided S&T with more than 4:1 return on No.8 Wire’s investment (ROI).
- S&T now has programme customer data visibility 24/7, which allows it to leverage information to support sales and customer relationships.
- Over 65% of members earned promotional bonus points, providing a total 13% lift in sales against non-member sales for the same bonus categories.
- Targeted regional promotional campaigns delivered up to 48% increases in sales.
- Rewards promotions eDMs are achieving an average 57% open rate.
- Regular bonus point eDMs are achieving over 60% open rate and climbing.
Incentive Solutions was able to deliver an end-to-end customer loyalty management solution which ensured a positive revenue and margin impact. In addition, S&T saw an improvement in customer engagement and satisfaction. Based on the success of No.8 Wire Customer Rewards, the programme has now been expanded throughout S&T’s other businesses and customer groups.
Ready To Talk?
If you’re thinking of how to start growing your loyalty in the B2B sector, schedule your FREE and no-obligation consultation with one of our specialists.