Loyalty as a Growth Engine in Renewables – Does it work?

Over the last 12 months we have speaking to a lot of businesses in the renewable energy market and what is abundantly clear is that this sector is expanding fast…. in fact, really fast!

But, as ever, growth comes with challenges: fierce competition, fragmented installer networks, and the need to ensure consistent quality across the board.

We have first-hand experience of how a well-structured loyalty programme can turn these challenges, (which are common in many sectors, not only in renewables), into real, measurable opportunities.

“How”, I hear you ask?

First off – Driving Repeat Purchases

Rewards and tiered benefits keep installers buying from the same supplier, reducing churn and price-driven switching. It’s important to note that the reward at the “end of the tunnel” needs to be enticing enough to the installer to remove any price sensitivity from the equation (i.e. don’t just offer a discount on the next product purchase as everyone does that!)

Consolidated purchasing creates predictable demand and steadier cash flow for the business.

Shaping Positive Behaviours – A big one!

Loyalty programmes can do far more than motivate purchases, (although they are very good at that); they can be designed to encourage critical behaviours that improve the whole supply chain.

For example, better install reporting: Rewarding timely and accurate installation submissions improves warranty handling, performance tracking, and compliance reporting.

And what about keeping your customers up to speed on new products, etc? Rewarding members for training completion firstly raises installation quality, BUT importantly reduces costly call-backs and customer FAQ’s, which can really prove to be quite a bottleneck in scaling your business.

Managing a Fragmented Installer Network

The renewable installer landscape is often highly fragmented, with many small, independent businesses in the mix. This makes brand engagement difficult, especially when price and product specifications are the main touchpoints.

A loyalty programme centralises engagement, creating regular touchpoints with a disparate network of installers and provides a reason for installers to regularly interact with the brand between purchases. This engagement builds a sense of community, especially if combined with training, rewards, and other added benefits including exclusive access to technical support.

In summary, loyalty programmes in the renewable sector fuel growth by securing repeat purchases of your brand (over competitors), encouraging quality-focused behaviours, and uniting a disparate installer network into a stronger, brand-aligned community who will become brand ambassadors who stay with you for the long run.

Over the last 12 months we have speaking to a lot of businesses in the renewable energy market and what is abundantly clear is that this sector is expanding fast…. in fact, really fast!

But, as ever, growth comes with challenges: fierce competition, fragmented installer networks, and the need to ensure consistent quality across the board.

We have first-hand experience of how a well-structured loyalty programme can turn these challenges, (which are common in many sectors, not only in renewables), into real, measurable opportunities.

“How”, I hear you ask?

First off – Driving Repeat Purchases

Rewards and tiered benefits keep installers buying from the same supplier, reducing churn and price-driven switching. It’s important to note that the reward at the “end of the tunnel” needs to be enticing enough to the installer to remove any price sensitivity from the equation (i.e. don’t just offer a discount on the next product purchase as everyone does that!)

Consolidated purchasing creates predictable demand and steadier cash flow for the business.

Shaping Positive Behaviours – A big one!

Loyalty programmes can do far more than motivate purchases, (although they are very good at that); they can be designed to encourage critical behaviours that improve the whole supply chain.

For example, better install reporting: Rewarding timely and accurate installation submissions improves warranty handling, performance tracking, and compliance reporting.

And what about keeping your customers up to speed on new products, etc? Rewarding members for training completion firstly raises installation quality, BUT importantly reduces costly call-backs and customer FAQ’s, which can really prove to be quite a bottleneck in scaling your business.

Managing a Fragmented Installer Network

The renewable installer landscape is often highly fragmented, with many small, independent businesses in the mix. This makes brand engagement difficult, especially when price and product specifications are the main touchpoints.

A loyalty programme centralises engagement, creating regular touchpoints with a disparate network of installers and provides a reason for installers to regularly interact with the brand between purchases. This engagement builds a sense of community, especially if combined with training, rewards, and other added benefits including exclusive access to technical support.

In summary, loyalty programmes in the renewable sector fuel growth by securing repeat purchases of your brand (over competitors), encouraging quality-focused behaviours, and uniting a disparate installer network into a stronger, brand-aligned community who will become brand ambassadors who stay with you for the long run.

About the Author

Mark Maclure

Mark Maclure

Mark is a thought leader and shaper, and regularly speaks at seminars in different industry sectors on loyalty strategy, customer engagement, channel relationships and overall performance improvement.

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LoyaltyStream Key Features

  • 21 loyalty campaign types to suit every business
  • Options to deploy gamification campaigns such as Spin-To-Win and Prize Draws as well as Badges
  • Ability to track and reward all behaviours from transactions to actions
  • In-depth visual analytics and insights on Campaigns, Members, actions and transactions
  • Customisable CRM and segmentation options to suit your Member profile
  • Scalable modular SaaS platform that can grow with your business

 

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