Velux is a well recognised premium brand, therefore discounting product is not a traditional part of their sales strategy. However they recognised that driving share of market meant making non-loyal installers buying their windows loyal and coming back for more. In October 2013 Velux ran a price promotion that put a large dent in the bottom line. They needed to find a better way to offer value.
It was critically important to offer something that independent installers would see as true value, deliver it simply through hundreds of different retail merchants, and ultimately outperform the last promotion.
Cherry London flexed their partnership muscles to strike a strategic relationship with Argos, offering all of our installers a £30 voucher (no min spend) for every roof window (specific models) purchased.
We navigated the complex retail challenge with a simple text mechanic available across smartphone and feature phone.
Because we negotiate commercial partnerships across the business, we were able to offer Velux 8% discount on vouchers, plus payment on redemption to ensure the best commercial deal for all parties.
The promotion produced Velux’s highest sales month that year, reaching 25K+ installers with a 90% redemption rate.
So good in fact we’re now rolling out a wider loyalty programme in late 2015.