Loyalty schemes are a familiar sales tool used by multi-national airlines and retailers alike. Jo Shepherd, Ideal Boilers’ Chief Marketing Officer explores how installers can use loyalty schemes to optimise the efficiency of their business.
In the 30 plus years since the first high street loyalty schemes were introduced to the UK, their influence has spread from high street to supermarket, coffee shop and online stores. According to recent research by YouGov three quarters (77%) of the UK’s population are members of a loyalty programme, with seven in ten (72%) Brits believing they are a good way to reward customers and three in five (59%) thinking that all brands should offer them.
1: Loyalty – a two-way street
A well-run loyalty scheme has benefits for both the business and its customers. The business gains valuable data about customer purchasing habits enabling it to target its offer more precisely and improve customer satisfaction.
The customer gains a range of benefits including volume discounts, discounts for repeat sales, free products with purchase or exclusive competitions. As well as benefits such as these, Ideal Boilers’ ‘Installer Connect’ programme provides additional assistance for installers’ businesses with marketing tools and administration support.
2: Range of benefits
The installer/business owner can gain additional efficiencies from their business by the effective use of loyalty schemes run by their suppliers and manufacturers.
“For example, ‘Installer Connect’ offers an extensive range of benefits to its installer customers with points earned for every Ideal boiler installed” explains Jo.
“These can be redeemed on a variety of items including those specifically designed to directly benefit the installer’s business, such as personalised flyers, business cards, press advertisements, work wear and training courses. Plus, installers can gain double the value of points redeemed when they choose these training, marketing or uniform options.”
3: Professional pride
First impressions count, but creating the appropriate, professional first impression can be expensive. Being able to use points earned via a loyalty scheme such as Ideal’s Installer Connect on purchasing new uniforms for staff, is a smart option for installer business owners. A well-turned out engineer in branded uniform reflects well on the business, its professionalism and pride in its workmanship. Customers have the reassurance of being able to easily identify the company’s staff when they arrive for an installation, service or repair, instilling confidence and trust.
4: Train to gain
Ensuring staff have the most up-to-date training on the latest boiler models can be an expensive but necessary business investment. However, being able to take advantage of ‘points’ accrued through a loyalty programme can help to reduce these costs.
“We have extensive training programmes tailored for installers and their staff, ranging from one and two day on-site courses to online programmes” says Jo. “Options are available to tailor the training to each installer or company’s specific requirements, including product specific training on both domestic and commercial systems.”
5: Registration & Service reminders
“In addition the installer can benefit from easy parts and labour warranty registrations and free Gas Safe registration for each boiler they install which, combined with the annual service reminder scheme, will assist the installer in providing improved service to their customers.
“Through the service reminder scheme, Ideal will contact the customer to remind them that their boiler is approaching the time for its annual service and send the customer the name and contact number of the company that carried out the original installation. In addition, the manufacturer will contact the installer to inform them the customer has been contacted and reminding the installer to call to book the service.”
6: Making the most of marketing
“Effective marketing is essential for business success. With so many options and opinions, getting the most from a limited budget is crucial,” says Jo.
“Installer Connect’s ‘marketing toolbox’ provides installers with access to dedicated marketing collateral, including direct mail and advertising, to help installers promote and grow their business.
“Installers can redeem their points on advice and assistance from marketing professionals, including logos from graphic designers, advice on websites and social media. A well-designed marketing campaign, including logo and website, can ensure that crucial professional first impression is expressed to potential customers, helping the installer grow their business.”
7: Recommendation– instilling customer confidence
Assistance from a manufacturer doesn’t just come in the form of a loyalty scheme. For example, a listing on the Ideal website under ‘Find an Installer’ increases the installer’s visibility to potential customers in their area while giving confidence and peace of mind to the homeowner.
8: Rewards – good for business
Whether it’s a reward in the form of a discount, a gift with purchase or the infamous ‘buy one get one free’, getting the most out of points accrued is important for the success of the loyalty scheme – important to the customer who feels they are getting value for their hard-earned points and important for the business, demonstrating commitment to their customer.
Jo explains, “The smart installer will use every opportunity afforded by a manufacturer or merchant scheme to ensure continued success for their business and satisfaction for their customers.
“Installers can take advantage of the additional options offered through the ‘Installer Connect’ programme to select travel, ‘Love2Shop’ or a whole range of retailer vouchers as well as gadgets and tech such as iPhones and cameras. These vouchers and products could be used as part of a staff incentive scheme or customer rewards, adding value to the business without additional expense.”
9: Simple ideas
While we are most familiar with the multi-million pound loyalty schemes operated by Tesco, Costa Coffee or B&Q, if an installer wants to expand into loyalty schemes, it is possible to initiate a simple, sustainable and cost effective scheme relevant for their customers.
“For example, installers could start by offering a discount for repeat business, a free water treatment with a boiler service or a discount for referring a friend. Other options include early access to time-limited offers, for instance servicing during the summer months when installers might traditionally be less busy, and could substantially increase the business’s profitability,” suggests Jo.
“However it’s not necessary for a business to set up its own loyalty scheme for customers in order to benefit from the concept. The savvy installer will know that the business can take advantage of every possible option in manufacturers’ or merchants’ loyalty programmes to add value to their customers and invest in the success of their business.”
