Case study

Toolstream strengthening market leadership position rewarding customer loyalty with Toolpoints

Here’s how Toolstream works with Open Loyalty to develop the Toolpoints loyalty program’s capabilities and boost customer engagement.

Project summary

Toolstream supplies market-leading hand tools, power tools and premium workwear to both local and global retailers.

Their mission is to make business easy by delivering a huge range of quality products faster than anyone else – and at the lowest prices.

While working on perfecting the customer experience, the company decided to enrich their market offer. They achieved it via a stockist program that includes an educational center, extended product information, and the Toolpoints loyalty program.

Toolstream decided to partner with Open Loyalty and to use Open Loyalty’s API-first engine to extend their existing solutions with loyalty program features.

Key results

  • Enriching customer experience and existing stockist’s program with loyalty features based on classic earn and burn mechanics
  • An international loyalty program that operates throughout the UK and Europe with content provided in 7 languages 2 currencies (GBP & EUR)

The challenge: differentiate on the crowded market

The power tools, hand tools, and workwear supply industry is highly competitive. Businesses face the constant pressure to differentiate themselves and stand out among competitors. They must continually find ways to offer unique value propositions, innovative products or services, and exceptional customer experiences to gain a competitive edge.

As an established wholesale tool supplier, Toolstream  competes on product innovation, quality, pricing, brand reputation, distribution networks, and also invests in marketing and branding efforts to establish a competitive edge.

On the way to becoming Europe’s largest tool distributor, Toolstream aims to provide stockists with exclusive market-leading products at lowest prices. This can result in lower profit margins and the need for cost optimization strategies. Finding the right balance between price and profitability becomes crucial.

While working on enriching the value proposition, Toolstream’s team developed a concept of the “Become a stockist”. The program provides clients with the best offering, knowledge and lots of additional value in exchange for loyalty.

The Toolpoints loyalty program became an important ingredient of the new solution.

The solution: extending value proposition with Toolpoints

In order to win market share, Toolstream offers an extensive package of benefits to support their loyal customers. The “Becoming a stockist” program provides access to award-winning products from market-leading brands as well as customer services, marketing support, and brand marketing campaigns.

The “Becoming a stockist” program provides access to award-winning products from market-leading brands

Toolpoints reward scheme

One of the key benefits in the customer success program is the Toolpoints reward scheme. Members earn points as they shop and can redeem them for a range of gifts — from the latest gadgets (e.g. iPad) and vouchers (e.g. Amazon) to merchandise and marketing support.

In such a competitive market, where customers have multiple options, a loyalty program provides an extra incentive for them to stay loyal to the brand and continue choosing its products over those of competitors.

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