Large Format Success Club

HP EMEA

The challenge

HP Large Format Printing needed to protect the sales of Original HP supplies, which were being threatened by refills and competing brands. They also needed to secure their existing customer base, increase print volume and expand HP’s market share. The promotion should be carried out through direct contact with high-volume users of large format printers. Pepper’s task was to set up a virtual community with a tiered pricing structure allowing for audience segmentation and offering members a clear incentive if they printed more with HP.

The idea

Pepper developed, promoted and maintained an online club portal—the HP Large Format Success Club (LFSC)—which became a retention program for high-volume large-format print customers throughout EMEA. The LFSC had a unique system of tiered benefits and audience segmentation, based on different “web lounges” which customers could access after registering to become members. These served as doorways to volume-based supplies discounts: the more a customer printed, the more exclusive the lounge he was entitled to visit, and the greater his rewards. All new members started off in the Red Carpet Lounge, while high-volume print customers were invited to the Blue Note Lounge, and highest-volume members joined the Golden Circle Lounge. Both Blue Note and Golden Circle membership included a reseller contract and volume-based tiered pricing.

The result

Through tiered pricing contractual sales, HP secured $45m on ink per year with an average discount of 9 %
Finalist in 2009 worldwide HP Circle Awards as best relationship marketing program

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