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How ITC Classmate Built a Structured Supplier Loyalty Program to Drive Business Growth



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Program Detail Description
Program Type Supplier Loyalty Program
Target Audience Suppliers
Geography India
Engagement Model Business Achievement-Based Loyalty with Tiering, Points & E-Voucher Rewards
Key Objective Reward business achievement, increase sales, strengthen supplier engagement, and create a win-win partnership with Classmate

Client Overview

ITC Classmate operates a large supplier ecosystem where suppliers play an important role in supporting product availability and business growth. To strengthen this ecosystem, ITC Classmate implemented Classmate Star Club, a structured supplier loyalty program designed to reward business achievement while creating a stronger and more transparent partnership with its supplier network.

BUSINESS CHALLENGES

  • Connecting Business Performance with Loyalty: The program needed to directly connect supplier business achievement with rewards, ensuring that loyalty participation was driven by measurable business performance.

  • Creating a Structured Tier-Based Engagement Model: The program required multiple achievement levels so suppliers could clearly understand their current tier and the business performance required to progress to the next level.

  • Managing Sales, Collections and Reward Eligibility: The loyalty model required sales invoices, collections, credit periods, and business values to work together before rewards became redeemable.

  • Bringing Transparency to Supplier Rewards: Suppliers needed a convenient digital interface to view their membership information, current tier, points, rewards, e-vouchers, redemption history, and support requests.

  • Supporting a Scalable and Controlled Program: The program required centralized administration, role-based access, dashboards, reports, user authorization, and business-period controls to support effective program management.

THE SOLUTION

Loyltworks designed and implemented Classmate Star Club as a business-performance-driven supplier loyalty program, connecting supplier sales, collections, tier progression, incentive calculation, and rewards within a structured platform. Suppliers progressed through Bronze, Silver, Gold, Platinum, and Platinum Plus tiers based on defined business achievement criteria. Sales data was used to calculate business performance and incentive points, which were initially maintained as notional points.

Collection and credit-period validation were integrated into the reward process, with eligible notional points converted into redeemable points once the defined conditions were met. The Classmate Star Club microsite gave suppliers a digital interface to view their dashboard, monitor tiers and rewards, access e-vouchers, track redemptions, manage their profiles, and raise support queries.

PROGRAM EXECUTION

  • Supplier Onboarding: Supplier data was onboarded through structured templates, with supplier profiles and program information captured in the platform. Membership IDs were generated automatically.

  • Business Performance Capture: Sales teams recorded supplier sales and invoice details in the platform. The system calculated applicable business values for performance and incentive calculations.

  • Tier & Incentive Management: Supplier performance was mapped against defined business slabs, enabling progression across Bronze, Silver, Gold, Platinum, and Platinum Plus tiers. Incentive points were calculated based on applicable business achievement.

  • Collection & Reward Validation: Collection information, outstanding values, credit periods, and invoice status were validated as part of the reward eligibility process. Eligible notional points were converted into redeemable points once the defined conditions were met.

  • Digital Rewards & Redemption: Suppliers could redeem eligible points against e-vouchers through the Classmate Star Club microsite, with redemption activity recorded within the platform.

  • Communication & Support: The platform supported automated communication for key program events, including welcome alerts, points accumulation, tier upgrades, reward redemption, point expiry, and PIN recovery. Suppliers could also raise support queries through the microsite.

BUSINESS IMPACT

  • Connected supplier business achievement with incentive points and reward eligibility.
  • Encouraged higher business achievement through a structured progression from Bronze to Platinum Plus.
  • Improved transparency by giving suppliers visibility into their tier, points, rewards, and redemption activity.
  • Strengthened reward governance by integrating sales, collections, and credit-period validation.
  • Created a digital supplier engagement channel for program access, rewards, e-vouchers, communication, and support.

KEY INSIGHT

The most effective supplier loyalty programs go beyond points and rewards by connecting business performance with meaningful incentives. Classmate Star Club demonstrated how linking supplier achievement, tier progression, collection validation, and reward eligibility can create a more transparent, structured, and performance-driven supplier engagement model.

ABOUT Loyltworks

Loyltworks is an AI-powered loyalty and engagement platform built to help brands design, launch, and scale performance-driven loyalty programs across their business ecosystems. With 12+ years of experience and 100+ loyalty program implementations, Loyltworks supports brands across customer loyalty, channel partner loyalty, trade loyalty, supplier loyalty, influencer loyalty, and sales incentive programs.

The platform brings together program design, digital onboarding, business-rule-based incentive calculation, tiering, points management, gamification, rewards and redemption, communication, analytics, and enterprise integrations in a unified ecosystem. Loyltworks supports complex loyalty journeys across stakeholders including suppliers, distributors, dealers, retailers, influencers, sales teams, and other business partners, with capabilities for scalable, multi-market program deployments.

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