For generations, Klein Tools has manufactured premium hand tools for a small, but extremely brand loyal group of professionals. To further engage these customers, Klein Tools recently created a new loyalty program by partnering with Snipp, a technology firm that provides marketing solutions through an innovative loyalty program engine and receipt-processing platform.
Tom Barton, Klein Tools Product Marketing Manager, recently spoke to Loyalty360 regarding the company’s unique marketing efforts and the challenges of opening new lines of communication with the highly devoted customers who consider Klein Tools to be the true mark of a professional.
What makes a Klein tool such a tool of preference? Has this always been the case?
Barton: We have made great hand tools for the past 158 years. We make durable goods and the bond we create with our customers is strong. Typically, when someone goes to a trade school, or through an apprentice program, the first thing they get handed is a pair of Klein pliers. And it is entirely possible that that pair of pliers never wears out.
If you are an electrician, a Klein tool is like a pair of Nike shoes or an Apple computer. It is the brand. It is well above 90% brand preference and it is the mark of a pro.
Do you launch new products or is your main focus on the quality of existing products?
Barton: Obviously we come out with new products. We develop new tools and innovations as industry regulations are updated, and as technology changes. But, at its core, it really comes down to quality. We have the highest quality product and people know it.
How does this influence the marketing efforts of Klein Tools?
Barton: We market the product based on what I call legacy marketing. This where a teacher tells a student or a father tells his son. It is the most powerful message in the world. From the last two or three generations, we have earned the respect of the people who are now teaching and it just continues down the line. That’s everything. It means more than you could ever imagine.
So you have a very durable product and a very loyal core group of customers, so that presents a challenge, right? How does this impact sales and growth opportunities?
Barton: It is tough because our customers are not going to a supply center or a Home Depot every day to replace tools. So we always try to find ways to reach out and make customers aware of new products and new innovations. But we have to do that by getting them at home or reaching out through social media.
We also reach out to people who are leaders in the field. When we run promotions like Electrician of the Year we want to identify those leaders within the electrical community because those people have a lot of sway and a lot insight on what tools their guys should be using. Because 95% of everything we sell is targeted toward electricians. That is our customer. I know who they are. I know where they are. I know where they go to school. Everything is focused on those customers.
Beyond legacy marketing and these unique customer engagement promotions, how else does Klein Tools build customer loyalty?
Barton: We are actually just about to launch a brand new loyalty program. We partnered with a company called Snipp that allows any end user, any electrician, and DIY home-owning customer to take a picture of their receipt with our new app and text it to Klein. After that, customers can start building points right away. As customers build up points over time, they are able to take those points to buy Klein brand merchandise.
Is the ultimate goal to move those customers into a direct sale?
Barton: Our goal is to open a line of communication. There are only 800,000 electricians in this country and we are a small company, so for us to buy a Super Bowl ad does not make sense. I want to open a direct line of communication with the customer base. And once that is successful, I want to be able to direct them to new product lines. When I have the electrician in our loyalty program, I can tell him, for example, that he’s going to get twice the points this month with a certain purchase. We will be able to direct that original sale to new product lines, and new product opportunities.
Is this one of your biggest challenges, to communicate with your customer base?
Barton: Absolutely. Our customers are out on the job working. They are not listening to the radio, usually. There is no TV on. They are not on their phones or reading the newspaper. If you are in a focus group and ask them who has a laptop, they all laugh at you.
It is very hard to talk to that audience, but I know they carry smartphones. They have them on their belt. And this may be the one and only way to reach out to these guys on a daily or monthly basis.
We have a very small group of customers that buy a ton of stuff. And most of the time the way they find out about new products is from the guy next to them on the job site. So if one guy buys it, they all buy it.
About the Author: Mark Johnson
Mark is CEO & CMO of Loyalty360. He has significant experience in selling, designing and administering prepaid, loyalty/CRM programs, as well as data-driven marketing communication programs.