Using Reward Systems to Build Your Successful Channel Loyalty Program

A channel loyalty program is an important element in your company’s growth strategy and a key pillar in your company’s revenue growth. Channel loyalty is focused on transforming the relationship between your direct trade partners and your brand from a purely transactional one to an emotional, long term relationship. This article will explain what a channel relationship is, why it is important and what your company should be doing to increase sales by having this type of relationship with their direct suppliers.

As a retailer, it is important for you as a brand to have strong relationships with your direct product suppliers. These relationships form a strong foundation for future retail sales growth. By having a strong relationship with your retail partners, they will invest time and effort into promoting your brand, increasing awareness, attracting new customers and keep your current customers engaged. However, if your brand does not have a relationship with one or more of the suppliers your sales can fall flat and even fail to meet your projected profit results. This is where a strong channel loyalty program comes into place.

Your Channel partners, like your customer’s customers, want to know that you are building a business that is focused around the core values of your company. Your team, your sales representatives and even your CEO, need to have clearly defined business goals to guide them in meeting your future sales projections. Without clearly defined business goals, the next question you may ask yourself is, “How do we measure our success, both short term and long term?” This is where a comprehensive channel loyalty program comes into play.

A comprehensive channel loyalty program should include: Goals and Rewards for your direct sales partners, something that relates directly to their own sales goals and something that will reward those partners for reaching their own business goals. In addition to rewards for reaching sales goals, what about benefits for your customer’s experience? How can you best foster that positive customer experience? Is there room for added incentives, such as discounts at your stores, free gifts or samples, invitations to special sales events?

The key is to consider all of these factors when you create a channel loyalty program based on rewarding your new partners across multiple channels. It is important that your program be reviewed periodically by an outside source, such as an outside consulting firm, to make sure it is in line with your overall business goals. It is also important that you develop a system for rewarding your partners across multiple channels. This will go a long way towards ensuring that your efforts are not only rewarded in terms of sales, but are also duplicated in other areas across your organization. The rewards you develop should encourage your partners to continue engaging in the activities that bring you additional sales and publicity, while increasing their visibility and market share in the marketplace.

When you reward your channel partners for engaging in efforts that bring you new sales and publicity, it is critical that you have clear rules and guidelines for engaging your partners. Once you establish rules, you can then be flexible with how you communicate them. You might decide that you want to offer a cash bonus for new customers, double points for those who refer other customers or a discount at the store for buying two or more items. A good rule of thumb for channel loyalty programs is to have one established reward per partner and several tier rewards available for expanding your reach.

In building a successful and profitable channel loyalty program, you must take time to understand your own organization well. It is important that you understand the overall goals and objectives of your company, as well as your own specific goals. You will need to understand your target audience, which will include your target market, competitors and key influencers. You will need to understand your partners, which will include your current customers, potential competitors and any other influencers in your particular industry that can make a difference in your sales results. All of these elements can guide your decision making process when deciding which programs to run and how to manage them.

The way in which you reward your channel partners has a significant impact on their participation in your program. Many network marketing companies use different forms of reward to reward their partners. For example, some use bonuses and some use awards. It all depends on your company’s budget, your partners’ likes and dislikes, and the overall success of your program. The better you understand your target audience and the goals of your company, the better you will be able to design a reward system that works effectively.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Fatal error: Uncaught Error: Call to undefined function jnews_encode_url() in /homepages/9/d885175214/htdocs/clickandbuilds/MagazineModule/wp-content/plugins/jnews-social-share/class.jnews-select-share.php:227 Stack trace: #0 /homepages/9/d885175214/htdocs/clickandbuilds/MagazineModule/wp-content/plugins/jnews-social-share/class.jnews-select-share.php(359): JNews_Select_Share::get_select_share_data('facebook', false) #1 /homepages/9/d885175214/htdocs/clickandbuilds/MagazineModule/wp-content/plugins/jnews-social-share/class.jnews-select-share.php(67): JNews_Select_Share->build_social_button('facebook') #2 /homepages/9/d885175214/htdocs/clickandbuilds/MagazineModule/wp-includes/class-wp-hook.php(303): JNews_Select_Share->render_select_share('') #3 /homepages/9/d885175214/htdocs/clickandbuilds/MagazineModule/wp-includes/class-wp-hook.php(327): WP_Hook->apply_filters(NULL, Array) #4 /homepages/9/d885175214/htdocs/clickandbuilds/MagazineModule/wp-includes/plugin.php(470): WP_Hook->do_action(Array) #5 /homepages/9/d885175214/ht in /homepages/9/d885175214/htdocs/clickandbuilds/MagazineModule/wp-content/plugins/jnews-social-share/class.jnews-select-share.php on line 227