Overview
A cooperative of 38 independent plumbing merchants needed a robust way to compete against heavily centralised corporate rivals.
They required a unified self-funded plumbing incentive capable of building lasting trade relationships and increasing share-of-wallet across the entire group. This had to be achieved without burdening individual store owners with high setup costs, eroded margins, or complex ongoing management.
Key Achievements
-
44 %Increase in Sales -
40 %Reduction in Churn -
12 %New Customer Acquisition
The Challenge
As a cooperative of independent merchants, the group faced a structural disadvantage against corporate competitors who benefited from unified marketing and cohesive loyalty offers. Historically, individual owners ran their own ad hoc, discount-heavy reward schemes. These were expensive, time-consuming, and inconsistent across the network.
The group lacked a strategic method to capture attention in a market where trade professionals regularly split their spend across multiple suppliers. They needed a programme that supported members individually while strengthening the cooperative brand collectively.
To succeed, the new loyalty strategy needed to achieve three core objectives:
- Unify the Brand Experience: Create a consistent, high-value reward offering across all 38 independent locations.
- Protect Merchant Margins: Transition away from margin-eroding cash discounts towards sustainable, behaviour-driven incentives.
- Minimise Administrative Burden: Implement a seamless system that did not demand heavy upfront investment or extra work for counter staff.
Ultimately, they needed a solution that drove incremental growth without adding operational complexity.
Want to see what we can do for your brand?
The Solution
We developed a fully tailored, bespoke rewards programme designed from the ground up to empower independent merchants. By centralising the technology and strategy, we provided a unified platform with decentralised control for individual store owners.
A Self-Funded Commercial Model
Instead of charging hefty setup fees or ongoing management retainers, the programme utilised a unique, performance-based 3% redemption model.
This meant merchants only paid when rewards were actually claimed by the trade customer, eliminating upfront risk and ensuring ROI was always positive and clearly measurable.
Behaviour-Driven Levers
We strategically transitioned the cooperative away from traditional cash discounts. In their place, we implemented sophisticated, behaviour-driven levers.
Store owners were given the agility to adjust reward levels dynamically based on specific customer behaviours, allowing them to offer higher earn rates specifically to high-value contractors.
Supplier-Funded Promotions
To further offset costs and drive specific product movement, the programme integrated supplier-funded promotions.
Merchants could collaborate directly with major plumbing manufacturers to activate targeted, limited-time point multipliers, incentivising contractors to shift their brand preferences while suppliers funded the bonus rewards.
Centralised Technology Platform
The backbone of the solution was a centralised technology platform that removed the administrative burden from local counter staff.
It provided live performance tracking, automated point allocation, and rich data consolidation, giving both the cooperative head office and individual owners real-time visibility into their sales metrics.
Data-Driven Communications
Leveraging the insights gathered by the platform, we introduced highly segmented, personalised communications.
Rather than manual heavy lifting or generic blasts, trade customers received targeted updates regarding their point balances, tier status, and relevant promotions, keeping the programme top-of-mind and continuously driving engagement.
The Result
The strategic shift from ad-hoc discounting to a unified loyalty ecosystem delivered measurable commercial impact across the board. By offering flexible, aspirational rewards, from premium merchandise to tailored concierge experiences, the coalition fundamentally changed how their trade customers engaged with the brand.
Key highlights of the rollout included:
- 99% Programme Uptake: Achieved near-total adoption among invited high-value trade customers.
- Increased Transaction Frequency: Drove consistent, repeated visits as contractors consolidated their spend to reach aspirational reward tiers.
The automated, strategic nature of the programme removed the operational headache for independent merchants. As one relieved store owner noted, the new platform “gave them their life back” while simultaneously driving record growth for their business.
