Boosting Customer Retention and Reducing Churn for Indigo Paints through a Mobile App-Based Loyalty Program

Summary

Indigo Paints, among the top 5 paint companies in India by volume, excels in producing innovative, eco-friendly decorative and industrial paints. With an annual production capacity exceeding 100,000 metric tons, the company boasts an extensive distribution network, including 36 depots and over 11,500 dealers across India, and exports to countries such as Nepal, Bangladesh, and Sri Lanka.

Challenges

As a relatively new market player, Indigo Paints sought to create an effective incentive program for painters and contractors to build brand awareness and expand market share.
A highly engaging, personalized, and sales-linked incentive program was crucial for targeting potential product influencers.
Painters and contractors collected physical coupons upon purchasing products, which could be redeemed for cash from retailers.
The traditional coupon-based loyalty program lacked customization for various influencer tiers, leading to disinterest and disengagement.
Absence of data or analytics for analysing the success of incentive programs for the channel partners

Solution

In 2022, Indigo Paints collaborated with O4S to launch a nationwide loyalty program for channel partners such as painters, technicians, and contractors. The program aimed to:

Transition from coupons to dynamic QR codes on products.
Track sales via QR code scanning by painters or contractors.
Design flexible incentive schemes based on geography, SKUs, and other key factors.
Offer appealing redemption options like direct cash transfers.
Engage partners at scale using in-app notifications and SMS.
Enhance app engagement through gamification of reward points.
Implement a multilingual application to boost participation.
Provide a control system for business teams to design regional incentive schemes based on seasonality and festivals.
Offer real-time scan logs and data analysis dashboards for dynamic scheme modifications.

Benefits

Organized Channel Partner Data: Streamlined onboarding, registration, and participation processes led to well-structured channel partner data.
Accurate Sales Data: Product serial numbers enabled precise tracking of sales across geographies and demographics.
Precision Incentives Management: O4S’s cloud-based engine ensured accurate incentive and redemption data.
Increased Sales: Tailored incentive plans via a multilingual app raised participation by 500% in under a year, reducing churn by 85%.
Enhanced Efficiency: Automated workflows reduced the administrative burden on Channel Management Teams to under 4 hours per week.