JSW Steel, a subsidiary of the JSW Group, is one of the leading steel manufacturers in India. One of its primary highlights is the introduction of innovative and sustainable practices in the industry. It is renowned for producing many steel products, including hot-rolled, cold-rolled, and coated sheets. Furthermore, it operates across varying industries like construction, automotive, and appliances.
Beyond prioritising the manufacturing of good-quality products, JSW Steel is also dedicated to ensuring optimal customer satisfaction and loyalty to solidify its growth and market leadership.
Customer’s Initial Problem
JSW Steel recognised the need to strengthen its relationship with influencers and channel partners who play a critical role in the steel and coated sheets market. Initially, they focused on engaging influencers through two limited avenues - family events and festive wishes.
However, despite the initial low percentage boost in exposure, the company faced issues with tracking tertiary sales, managing channel partner interactions, and ensuring effective engagement and loyalty among the diverse set of stakeholders.
Some of the main challenges they faced:
Fragmented Engagement Efforts
Since their initial engagement with the influencers focused on festive wishes and family events, this didn’t translate to long-term loyalty among their target audience.
Ineffective Sales Tracking
The biggest issue was the lack of an efficient mechanism to capture and analyse tertiary sales data. This, in turn, impacted the strategy formulation and decision-making regarding the company’s marketing approach.
Limited Scope of Loyalty Programs
The existing loyalty programs that JSW Steel was utilising had a narrow scope. They relied heavily on call centres for their operations and failed to make the most of the advanced digital platforms available today.
How the Approach by 1Channel Solved the Problem?
At 1Channel, we collaborated with JSW Steel to address these challenges in a phased manner and with optimal strategy.
The solution evolved from a basic influencer engagement program to a sophisticated, integrated loyalty system encompassing multiple user types and functionalities.
Phase 1: Family Engagement and Tertiary Sales Capturing
The first step in setting up our marketing and loyalty program for JSW Steel was to focus on and expand on what they already had running. This included their influencer engagement program, but our focus was to include tertiary sales capturing in this phase.
Here’s what we focused on:
1. Focusing on maintaining and strengthening personal relationships via influencers through personalised festive messages and family events.
2. Our main objective in this phase was to capture the sales data at a tertiary level. This would help JSW Steel gain insights into market trends and track influencer performance.
Phase 2: Fabricator Loyalty Program
With the successful completion of the first phase, 1Channel then focused on the need for a more structured loyalty initiative. This is when we proposed and developed the Fabricator Loyalty Program.
The key features of the program included:
1. Leveraging call centre operations to facilitate two processes—purchase registration and Nomination process. This would ensure ease of access for the fabricators.
2. Like standard loyalty programs, even this focused on a points-based system that would reward the fabricators for their purchases on JSW Steel.
Phase 3: Integrated Loyalty Program
The last and possibly the most crucial resolution proposed by 1Channel was this extensive loyalty program, which was primarily digitally driven.
The following were the elements included in the program:
1. Multi-user integration – This was likely the breakthrough JSW Steel’s marketing needed. It focused on expanding the program to include seven different user types, each with tailored modules and rewards.
2. Digital platform – In a world where the entire world is switching to digital, JSW Steel’s marketing needed to be where its consumers were. This involved a gradual transition from a call centre-based system to a robust digital platform. What this did was enhance accessibility and efficiency.
Outcome - What Were the Results?
The implementation of the Integrated Loyalty Program has significantly transformed JSW Steel’s approach to influencer and channel partner engagement.
Our focus was on generating immediate and long-term success for JSW Steel’s market presence and goodwill, and that’s exactly what happened following the introduction of the Integrated Loyalty Program.
Key benefits from the implemented program: The comprehensive marketing approach has strengthened relationships with influencers and channel partners, fostering a sense of loyalty and commitment.
1. This has addressed the initial issue that the customer was facing – Not being able to track sales. The integrated system has provided JSW Steel with accurate and actionable insights into tertiary sales, enabling data-driven decision-making.
2. Lastly, implementing a loyalty program had incentivised influencers and partners, leading to a higher level of participation and loyalty.
Impact data:
1. 80,000+ Total Member Base
2. 55,000+ Influencer Base
3. 20,000 Active Influencers in Q1 2023
4. 1 Lakh Metric Tons of Purchase Registered
Testimonial from JSW Steel
"1Channel’s Integrated Influencer and Channel Loyalty Program has been a game-changer for us. It has streamlined our engagement efforts and provided us with invaluable insights into our sales processes. The program’s success is evident from the remarkable participation and loyalty we have witnessed from our influencers and channel partners." – JSW Steel Representative.
Looking into the Future
With the salient success of the integrated loyalty program and the digital reforms implemented by 1Channel for JSW Steel, we can remain hopeful that the same would ensure sustained engagement and loyalty.
Depending on the boost in sales and digital growth, some of the future initiatives might include:
1. Using advanced analytics to gain deeper insights into influencer behaviour and sales trends.
2. Expansion of the existing digital platforms with new features and functionalities.
3. There might be possibilities for global expansion leveraging the proven model to drive further growth for the company.
In conclusion, the collaboration between JSW Steel and 1Channel has set a benchmark for effective loyalty program implementation in the steel industry. The introduced marketing strategies and loyalty program have successfully addressed JSW Steel's initial pain points, with special emphasis on the power of strategic engagement and data-driven decision-making.
