Case Study

Building Supply Company ROI Increased By 223%

Dealer enhances engagement, increases market share with Extu’s data-driven loyalty program.

The Situation

A dealer sought to increase loyalty and market share among 100 of their high-potential, at-risk builders. With Extu’s assistance, they introduced a loyalty program to award points for purchases, incentivizing increased spending. This program successfully enhanced customer engagement, fostered loyalty, and encouraged sales growth.

The Solution

With a structured point system, this dealer awarded 1 point for each dollar spent, and a bonus reward system offering 4 points for each dollar spent above the previous year’s amount. Additionally, they secured more business by randomly awarding points as incentives for truck load sales and expanding the program to their entire customer base.

With sales growing 14% in the first year from participants, this dealer saw consistent growth from participating contractors over non-participating contractors over the next two years.

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Results

+223%

Increased ROI

$174k

Incremental net margin

$78k

Total program cost