Overview
Overview
Michelin Tyres stands as one of the oldest and most esteemed tyre brands globally. Known for its premium pricing, Michelin has built a reputation for unmatched quality. The company’s rich and celebrated legacy is due to its history as a pioneer in radial tyre technology to Formula One racing and serving as a supplier and partner to the sport for years, contributing to over 100 grand prix wins. Additionally, Michelin has collaborated with Ferrari S.p.A. for nearly five decades and since 1900, has been creating the renowned and respected Michelin Guide. The awards know as Michelin Stars stemmed from this guide and have become a globally recognized symbol of excellence in culinary arts and hospitality. Michelin remains steadfast in its commitment to quality and customer satisfaction.
Concern
Concern
Despite this strong brand presence, Michelin faced significant challenges due to adverse economic conditions and the presence of cheaper options in a highly competitive market, leading to a decline in sales in South Africa. The company needed a solution that would consistently motivate its frontline salesforce nationwide to promote the Michelin range. Vetro Media was brought on to solve the need to collect the data from frontline sales, establish seamless communication with sales personnel and reward them for selling Michelin tyres.
Approach
Approach
We then pitched the Michelin Torque program, a B2B loyalty initiative that runs nationwide and designed to reward salespeople for prioritizing Michelin over competing brands. The program aimed to boost Michelin sales while promoting long-term brand loyalty. The incentive structure was straightforward: sell a Michelin tyre within specific denominations, upload the invoice to the Michelin Torque platform, earn points based on the sale, and redeem those points for rewards. We developed a robust web-based application requiring a cell phone number and one-time password (OTP) for login and registration. This was integrated across all dealerships in South Africa selling Michelin tyres. To join, all sales personnel had to do was send their name, number and the name of their dealership to us (known as the Michelin Call Center) where they would be registered as users.
They could then log in with their number and start accumulating points through their sales efforts. Users needed to submit invoices detailing tyre sales for validation; once validated on the platform’s backend, points were credited to their personal profiles. To redeem points, users accessed a voucher section where they could select from various voucher options before receiving an SMS with their digital voucher.
The platform also established a direct communication channel with salespeople where SMS notifications were sent regarding brand updates, loyalty campaign news, and exclusive promotions – with the database continuously updated. Additionally, the Michelin Torque Program was adapted to run B2C campaigns promoting varied product offers across the different business units. Customers simply had to register on the same platform but depending on their user status, followed a distinct journey. Utilizing this unified platform eliminated the need for external campaign builds, reducing costs.
Outcome
Outcome
This program is definitely one of Vetro Media’s most successful B2B loyalty and rewards initiatives where an impressive 91% of issued points are redeemed each month. Torque sales represented 40% of the overall tyre sales, resulting in a 28% increase in overall tyre sales when comparing 2018 to 2019.
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