Strengthening profitability with a tax back promotional event

The location: US

Howard’s is Southern California’s leading independent appliance retailer, providing a one-stop-shop for the best selection of appliances, TVs, and mattresses. While aiming to offer the best deals on everything from entry-level to luxury and premium lines, Howard’s is committed to becoming America’s number one appliance retailer for customer service by providing an excellent in-store and after-sale experience.

The challenge

Seeking to drive significant audience engagement during one of the busiest days on the US calendar (July 4th), Howard’s approached Opia to deliver an enticing promotion. They needed this promotion to be unique, giving them the edge over their competitors. It was also crucial for Howard’s to be able to refresh their marketing campaign and boost profit without negatively impacting their margin with instant rebates.

The solution

Partnering with Howard’s, Opia took an innovative and creative approach while using data insights to design a ‘Taxback (Chainwide)’ promotion. Any customers purchasing a product over $300 between a set period of time could claim their tax back.

The promotion was available across all product categories, including Refrigeration, Laundry, Cooking, Microwave, Hood, Dishwashers, Mattresses, Furniture, TVs, Outdoor, and Accessories. Purchases made in-store and online qualified for the promotion and customers could receive their rewards physically or digitally via PayPal.

Supporting the retailer’s reputation for excellent customer service, we used our extensive experience in designing, creating, and managing sales promotions to ensure a seamless and easy customer journey. Opia provided end-to-end management of the sales promotion, which included a turnkey program that made the process hassle-free for the Howard’s team and straightforward for the customer to access. Furthermore, using our proprietary sales promotion software, Opia Cloud, we provided Howard’s with reporting access that offered instant results and metrics.

The results

Redemption promotions, such as Howard’s ‘Taxback (Chainwide)’ promotion event, ensure better profitability when compared to traditional discounting, as only the most engaged customers claim their reward. This benefit was highlighted when running this promotion for Howard’s, saving them over 46% compared to traditional discounting methods, such as instant rebates.

The redemption mechanic used for this promotion also allowed Howard’s to expand their customer database of promotional receptive customers and gather valuable marketing data via our optional survey. With this data, Howard’s could concentrate future investment on the most engaged and responsive customers.

John Riddle, President Chief Executive Officer, Howards stated “With our Taxback (Chainwide) promotion, we were able to make significant savings compared to other upfront price drop promotions we’ve used in the past. Working with an experienced promotional partner, like Opia, also enabled us to run the promotion with ease, safe in the knowledge that our high standards for customer service would be upheld throughout our customers’ experience.”