Complete Guide to Loyalty in the Manufacturing Industry

Imagine this: a dedicated customer base who consistently chooses your brand, ensuring a steady stream of revenue for your business. Now, picture your customer base expanding as they opt for your products over those of your competitors. 

For manufacturing leaders like you, brand loyalty is not just a buzzword—it's a vital element in growing your business.

Yet, despite its importance, many manufacturers lack the necessary technology to achieve these goals. From navigating indirect customer relationships to grappling with limited data, the journey to securing brand loyalty in the manufacturing industry is far from straightforward.

In this guide, we'll dive into the pivotal role of brand loyalty in manufacturing. From identifying key challenges to revealing actionable solutions, we’ll equip you with everything you need to navigate this competitive sector with confidence.

Why is brand loyalty so important to manufacturers?

Brand loyalty benefits manufacturers by providing a steady revenue stream, reducing marketing costs, increasing profit margins, facilitating word-of-mouth marketing, offering resilience to competitive pressure, and creating opportunities for upselling and cross-selling.
 

Unlike price-driven purchasing decisions, brand-loyal customers consistently choose a particular brand, creating a stable revenue stream for manufacturers. 
 

Brands have a 60-70% chance of selling to an existing customer, versus a 5-20% chance of selling to a new customer.
 

By prioritising brand loyalty, manufacturers not only secure market share but also establish long-term relationships with customers, driving sustained success and profitability.

What are the main challenges of brand loyalty in the manufacturing industry?

These are just a few of the challenges brands in the manufacturing industry face when it comes to loyalty and customer retention.

Lack of direct relationships with end customers

Manufacturing brands often lack direct contact with consumers: either distributors handle their sales or they have multiple stakeholders between them and their end consumers.

It can be difficult for end-customers (whether they are business customers or consumers) to distinguish between the brands they purchase for each product, so they ultimately start placing their loyalty with the intermediaries and the retailers instead of the manufacturers.

Not having a direct relationship can make it hard to influence and drive the customer behaviours you want to see more of.

Not enough customer data

Selling through third-party retailers means not having a direct relationship with end customers but also facing difficulties when it comes to collecting detailed and insightful customer data.

If you pair this with the fact that many companies still have data silos (meaning that the data is held in different places and it’s harder to get an efficient single customer view), it’s easy to see how data can be a roadblock for manufacturing brands.

Not having enough data means brands can’t personalise their marketing and communication strategies, leading to ineffective campaigns.

Without a clear understanding of their customer’s activity, brands have no idea how to retain them. Did you know that customer churn costs US providers a staggering $168 billion per year?

No customer loyalty

One of the toughest things to achieve in manufacturing is customer loyalty. Loyalty means repeat business driven by desire, need, and incentives to return. It's linked to higher spending—returning customers spend 67% more. 

When customers trust you and have a history with your brand, they're inclined to spend more, try your premium products, or make bigger purchases. 

But how do you build loyalty without customer data?

How technology is helping manufacturing brands build customer loyalty

This is exactly where technology can help you.

Receipt scanning

The receipt is the most important document in the customer journey, especially if you’re a brand in an industry that makes it hard to collect enough data from your customers.

It can tell you everything you need to know: from what your customers are looking for, how they're shopping, and how your business stacks up against the competition.

Our receipt scanning system can be configured to extract any piece of data from a printed or digital receipt or invoice, no matter how big or small, allowing you to build up a picture of customer behaviour.

It doesn’t matter if your receipt has an unusual layout: our receipt scanning technology’s AI is powered by detailed computer vision and machine learning architecture, enabling it to quickly map the layout of any receipt or invoice.

See how we deployed a whole loyalty solution for AkzoNobel in just 10 days, with a receipt scanning solution that allowed customers to seamlessly scan their receipt with a Dulux product from any UK retailer.

Referral module

Referrals are an incredibly effective form of marketing, and they're also one of the most cost-effective: you don't have to spend lots of money on advertising or marketing, you just let the customers do the work for you.

Referrals can enhance your brand awareness by increasing your reach, opening up new opportunities for sales, and building relationships with existing customers by rewarding them for recommending your business.

They can drive more revenue because referred customers tend to be more engaged with your brand than non-referred ones.

If you want to learn more about how referrals can help you brand, check out our dedicated free guide.

Cashback

A cashback solution is a perfect choice for manufacturing brands operating in a space with low loyalty due to high competition and low differentiation, as well as those that are considered necessary purchases.

One of the main reasons customers might choose to stay with you instead of switching to your competitor is user-made savings. A seamless customer experience that actually feels rewarding is a straightforward way to build loyalty.

Use first-party data insightfully

We’ve already mentioned how hard it is for manufacturing brands to get customers’ data… and even when they get it, most companies fail to gather the true insight they need for their brand.

Integrating AI technology with your loyalty program can help you unlock deeper customer understanding.

AI can identify behaviour patterns, predict churn, and highlight preferences, so that you can proactively address issues and anticipate needs, cementing long-term loyalty.

By finding the hidden insights in your data, you can pinpoint key actionable findings and adjust your rewarding strategy accordingly.

Best practices for brand loyalty in the manufacturing industry

Here are some best practices you can follow when creating a loyalty program in the manufacturing sector. 

Understanding customer needs and preferences 

To cultivate loyalty among your customer base, it's essential to understand their needs and preferences and tailor your offerings accordingly. For many end-customers, practicality reigns supreme. 

They appreciate tangible rewards that directly benefit their businesses, whether they're installers, plumbers, decorators, painters, or any other trade professional. Consider offering incentives such as cashback or cash rewards, providing them with a valuable return on their purchases.

Another highly effective approach is to offer gift cards and vouchers for popular brands and destinations. These versatile rewards give customers the flexibility to treat themselves or their families, whether it's a day out or a simple morning coffee. By aligning your rewards with their personal interests, you create a connection that goes beyond the transactional, fostering loyalty and affinity for your brand.

Seamless end user experience

Crucially, customers should perceive these rewards as a bonus for their existing purchases. By seamlessly integrating rewards into their buying experience, you reinforce the value proposition of choosing your brand and incentivise future purchases. This not only strengthens their loyalty but also opens the door to cross-selling and upselling opportunities, driving further growth for your business.
 

Furthermore, it's essential to minimise disruptions to customers' buying habits. Convenience is key for busy professionals running small businesses, so ensure that your rewards program doesn't require significant changes to their purchasing routines. Make it easy for them to participate and redeem rewards without hassle, reinforcing their positive association with your brand.
 

Incorporating user-friendly features like receipt scanning can enhance the customer experience, offering multiple ways to submit receipts and invoices with minimal effort. 

Finding the right timeframe for rewards eligibility

Striking the right balance between engagement and convenience is crucial when setting the timeframe for reward eligibility. Whether it's accepting receipts from the last month or the last three months, finding the sweet spot ensures maximum participation without overwhelming customers. 

Setting redemption rules with a short timeframe may pressure customers, while allowing redemption rules with a long timeframe risks customers forgetting or delaying retrieval, leading to decreased engagement.
 

Ultimately, by delivering tangible value, personalised rewards, and a seamless user experience, you can forge lasting connections with your customers and differentiate your manufacturing business in a crowded market.

The top examples of best loyalty programs in the manufacturing industry

Wavin Rewards: Empowering Direct Customer Connections

Wavin, a leader in plastic pipe systems, identified a crucial gap in their marketing strategy: the lack of direct engagement with end customers. Their existing promotional activities, primarily managed through merchant channels, limited their ability to gather data and personalise offerings. 

To address this challenge, Wavin sought a data-driven loyalty solution that would facilitate direct connections with plumbers and installers.
 

Introducing Wavin Rewards
 

Wavin Rewards is a first-of-its-kind B2B loyalty solution delivered through a dedicated app. The app empowers end customers to earn rewards for their purchases regardless of the merchant. The key? Integration of receipt scanning technology, allowing seamless reward accrual for Wavin product purchases made nationwide.
 

Personalised Rewards for Enhanced Engagement

Wavin Rewards goes beyond conventional loyalty programs by offering personalised rewards tailored to individual preferences. With an event-based system, customers can earn points not just for purchases but also for referrals. 
 

“We chose White Label Loyalty because it had a market-leading loyalty App solution, and technology, which could be customized to our needs and scaled up in the future. The ongoing partnership approach and support of the White Label Loyalty team, openness, and flexibility to develop and refine the solution, have all been key to the successful launch of our Wavin Rewards loyalty program." 

[Daniela], [Marketing Director], Wavin
 

2. GivBax Rewards by ARDEX: Instant and Effortless Reward Redemption

Meeting the Demand for Instant Gratification

ARDEX Group UK recognised the need for a loyalty program that offered instant rewards and effortless redemption—a solution that aligned with the fast-paced nature of the construction industry. GivBax Rewards is the first loyalty program in the sector to offer instant reward redemption through a user-friendly app.

Simplifying Reward Redemption with Technology

GivBax Rewards leverages receipt scanning technology to streamline the reward redemption process. Customers can easily upload receipts and instantly redeem rewards, including cash from a vast network of ATMs across the UK. This seamless integration of technology ensures a frictionless experience, driving high engagement rates and customer satisfaction.
 

With an impressive 73% engagement rate and 8.8% of sales logged within the program in just six months, GivBax Rewards has redefined loyalty programs in the construction industry. Its innovative approach to reward redemption and user experience has set a new standard, driving increased sales and brand loyalty for ARDEX Group.

3. Dulux Cashback Campaign by AkzoNobel: Streamlined Shopper Activation

AkzoNobel, a global leader in paints and coatings, faced the challenge of simplifying engagement campaigns for consumers purchasing Dulux products across multiple retailers. The Dulux Cashback Campaign is an innovative initiative aimed at streamlining shopper activation and enhancing the customer experience.
 

Seamless Receipt Scanning for Instant Rewards
 

The campaign introduced a microsite where customers could effortlessly scan their receipts containing Dulux products from any UK retailer. Utilising advanced receipt scanning technology, the loyalty engine verified receipts, allowing customers to claim cashback rewards instantly. This seamless process not only increased customer satisfaction but also provided valuable insights into purchasing behavior.
 

The Dulux Cashback Campaign proved to be a resounding success, engaging over 600 shoppers and redeeming more than 200 cashback offers. By leveraging technology to simplify shopper activation and reward redemption, AkzoNobel gained valuable insights into customer behavior and preferences, driving increased engagement and brand loyalty.
 

“White Label Loyalty’s speed and reaction to get this campaign to market has been exceptional, we had an incredibly short turnaround time and WLL’s team managed to get the campaign live without hassle or stress. Their account management support and communication that we have had from the team has been great, keeping us informed at all stages with regular status updated during and after the campaign.”

Lucy Alborough - Shopper Brand Manager - Retail Marketing - AkzoNobel

4. The AClub Loyalty App by Daikin: Rewards for Sustainable Solutions

Rewarding Sustainable Solutions
 

Daikin UK, a leader in heating, cooling, and refrigeration technologies, recognised the importance of rewarding installers and purchasers of Daikin products for their commitment to sustainability. Introducing The AClub Loyalty App—an innovative platform that incentivises users to choose sustainable solutions through personalised rewards and exclusive benefits.
 

The AClub Loyalty App simplifies reward accumulation by enabling users to scan proof of purchase for seamless point accrual. Each qualifying purchase earns points redeemable for vouchers across multiple retailers, enhancing the overall customer experience and fostering brand loyalty through effortless redemption.

Promoting Engagement and Collaboration
 

The AClub Loyalty App drives increased engagement and loyalty among installers and purchasers of Daikin products by rewarding sustainable solutions and fostering collaboration with wholesale partners. Its intuitive user interface and personalized rewards ensure a positive user experience, aligning with Daikin's commitment to building a more resilient future.