The Client
P&G Wella Salon Professionals, a leading provider of haircare products through salons.
The Challenge
The client had been experiencing a gradual decline of salon sales of one of their haircare ranges salon owners and hairdressers retail in-store.
It wasn’t clear to the client whether the sales decline was due to salon consultants not pushing the products to their clients. Or whether the end clients were declining to purchase the products suggested to them by their salon consultants.
The Objective
The objective was to help the client turn around the fortunes of the haircare products in decline with salon owners, salon consultants and their customers.
The Solution
Orangutan came up with a simple but strategic mechanic to incentivise salon owners and salon consultants to upsell the products to their clients.
Founder and CEO Tim Peniston-Bird explained, “We took a gamified approach to the incentive to optimise engagement amongst salon owners and salon consultants. This was implemented in the form of scratch cards. Salon consultants received a scratch card every time they successfully made a sale of the product to their clients.”
The scratch card mechanic involved matching two halves of different scratch cards to win a prize.
Every case of product bought by salon owners included a guaranteed number of prizes per case of products purchased. This heightened probability of winning a prize got salon consultants fired up about the incentive.
The Prizes
Every salon was guaranteed a minimum of three prizes from a total of £400,000 RRP, including:
- Gift vouchers
- Comedy club tickets
- Cruises
- Weekend breaks
- Spa weekends
The prize selection was strategically chosen to appeal to the target audience – salon consultants. It represented superb value to the client.
Thanks to Orangutan’s bulk buying power in this area, prizes at a high retail value were sourced at minimal costs.
This meant the client benefited from being able to reward more salon consultants for less, presenting greater opportunity to drive better selling behaviours.
The Results
The product stock allocated by the client for this incentive was intended to last for three months. It flew off the shelves in just one month.
This massively successful incentive directly generated an enormous 68% increase in sales of what had previously been a declining product.
In addition to this impressive sales upturn, future sales didn’t fall off a cliff edge after the incentive finished – a criticism that’s sometimes levelled at sales incentives.
Sales remained slightly higher than before the incentive started, because engaged salon consultants had got in to the winning habit of upselling the product to clients.
Not sure if incentives can make a difference to your sales, or what sort of incentive to try? Contact Tim Peniston-Bird at tim@orangutan.co.uk or on 08456441122
