How Can a Fireworks Company Increase Customer Retention & Revenue With A New Loyalty Program

Fireworks, in general, are not an essential commodity but rather cater to a particular niche market. Their overall sales are influenced by a lot of different factors. Hence, it can be difficult for companies to maintain a steady revenue stream.

 
Another aspect of this problem is that oftentimes fireworks companies struggle with customer retention. It could be due to the cutthroat nature of the business, where rival brands are ready to offer heavy discounts, or simply because the product fails to stand out.
 
Both these problems have been negatively affecting the fireworks industry, leading to dire consequences.
 
At OrderEm we came across a similar fledgling fireworks company that had been operational for the last 20 years with a strong local support base. However, they were struggling to compete with modern competitors and wanted us to integrate a loyalty program into their business model.
 
Additionally, we were tasked with providing the company with a unique identity that would help it stand out as a modern fireworks brand.
 
Now, it is no secret that any business model that runs on retail sales greatly benefits from having a loyalty program. However, the big problem businesses often face is incorporating a meaningful loyalty program into their working structure. For a fireworks company, this problem is even more pronounced thanks to the niche market it caters to.
 
However, at OrderEm, we believe it is not all negative, and our experts took up this task with great aplomb. Right from the get-go we are confident that with our technical expertise, the company would not only have better customer retention and revenue but also stand out in this competitive environment.
 
Read on as we list the steps we took that eventually helped the fireworks brand reach its true potential.

Collect Customer Data

Customer data for modern retail businesses is worth its weight in gold. Since it can help you analyze the behavior of the customer and assist in predicting what they are looking for. Multinational companies across the globe put a lot of emphasis on collecting customer data for the very same reason.
 
Hence, the first thing we did was to make sure the company's website was properly collecting customer data. With our technical expertise, we were able to sort out previous customer data from both the company website and mobile app. Our analytics experts then worked on pointing out the flaws in the business model and rectifying them in due course.

Targeted Loyalty Program

At OrderEm, we believe any retail business can increase sales and customer retention with a well-planned loyalty program system. Different types of loyalty programs can be incorporated into a fireworks business, namely:

• Point-Based: Point-based loyalty programs are the simplest and most successful systems where customers get points for every purchase, which can be redeemed for rewards and discounts.
• Tier-Based: Tier-based loyalty programs are much more generalized, where customers are grouped into tiers like gold, silver, and bronze based on their purchase history. All of these tiers have specific perks, and customers can move up the tiers for better discounts and rewards.
• Subscription-Based: With subscription-based loyalty programs, companies can offer exclusive perks and rewards to customers who subscribe to the loyalty club. It is a fairly new concept in the retail business but offers a lot of potential, especially for customers who like to buy in bulk.

 
For this particular fireworks company, we decided to use a combination of point- and subscription-based systems. Customers could earn points for every purchase, which were used to assign certain loyalty tiers. Based on their current tier, customers were offered perks and discounts on their purchases.
 
Sounds confusing? Not to worry, with our loyalty program management system, anyone can manage their company's loyalty program with considerable ease.

Rewards System

For a loyalty program to succeed, the rewards and perks it offers must be relevant and useful to the customer. Historically, it has been seen that customers are not looking for freebies, as they associate free items with low-quality products.
 
On the other hand, perks like heavy discounts, free delivery, and one-day delivery services are all appreciated by customers. Alternatively, the fireworks company provided early access to new products for priority customers and even sent them free samples for feedback.
 
First-time buyers were offered heavy discounts for registering with the website or downloading the app. These perks not only proved to be a rewarding experience for regular customers but also encouraged visitors who were on the fence about choosing a particular fireworks brand.

Personalization

Personalization goes a long way toward customer retention in almost all businesses, and the same is true for fireworks companies. A customer who gets a personalized email with discount offers during birthdays and special events from a particular fireworks company will prefer it over the competition.
 
At Orderem, with our superior data management system, we were able to manage customer data and provide automated services where the fireworks company could send emails and newsletters to customers. Alternatively, visitors could manage their accounts and get notified about their accumulated points and upcoming rewards via personalized messages and emails.

Referral Programs

Referral programs for products and services have been around for a while now, but there is a belief that they have now reached their full potential. Any modern business based on sales must give importance to referral programs so that they can reach a broader customer base.
 
In this context, we made sure to incorporate a special incentive-based referral program for regular customers of the fireworks company. They were offered perks and discounts for referring the fireworks brand to their friends and families.

Social Media Presence

Social media in modern times has become an important part of existence, and people are spending more and more time on social media websites. Hence, having a strong social media presence is the bare minimum for any flourishing business.
 
Our content management team worked around the clock to help the fireworks brand grow its footprint on the internet. This move was particularly helpful, as it not only helped with product advertisement but also provided the company with valuable feedback about its overall service.
 
Additionally, we marketed the fireworks company during and around seasonal events like festivals, holidays, etc. on social media. Heavy discounts and free samples were offered for bulk purchases during peak season

Stand Out

A successful business must stand out among the competition, and this is even more vital for a company that produces seasonal products like fireworks. Think of it as a unique selling point that customers will associate with your brand when they are on the market for fireworks.
 
A great way for a fireworks company to stand out is to diversify its product portfolio. Traditional fireworks in modern times have been given a bad reputation since they cause pollution, are noisy, and use non-biodegradable materials.
 
Hence, one can focus on producing more environmentally friendly fireworks that make less noise and smoke. This was proving to be the biggest stumbling block, as it is impossible for a company to completely transform its practices overnight.
 
However, we made sure to suggest ways for the companies to reduce their overall carbon footprint by using biodegradable materials. These steps will not only make the fireworks company environmentally sustainable but also give it that ‘X’ factor that people gravitate towards.

To Conclude

As the famous saying goes, the proof is in the pudding. We present to you the results of our dedicated work.

The fireworks company launched its loyalty program in June 2023 and saw immediate results. Within 30 days, they achieved the following outcomes:

• They saw customers return for repeat purchases.
• Customers spent more per purchase to reach the next redemption tier.
• More customers brought new customers to earn more points.
• They registered over 60,000 users over one holiday through 23 locations.
• They also received positive feedback from their customers, who appreciated the rewards and the personalized service. 

It is simply not possible to run a fireworks company based on the same old-school principles and hope for success in modern times. Rather, owners need to reinvent their business ideas to keep up with modern standards.
 
At OrderEm, we strive to help companies and businesses constantly reinvent and transform themselves. We have helped more than 1,500 businesses reach their true potential and aim to do so in the present and near future.