Manufacturing high-quality paints and coatings is half the battle. The other half is choosing the right distributors and resellers to get the products to market. For that, you need to run an effective channel loyalty program for your channel partners—your distributors and all types of resellers.
By leveraging a well-designed channel partner loyalty program, you can provide a value-added experience to your channel partners and motivate them to promote your brand more.
At LoyaltyXpert, we have implemented several tailored, effective, and successful loyalty programs for many reputed paint brands and helped them achieve greater profitability and superior results.
In this blog post, we list six reasons to implement channel partner loyalty programs for paint brands. Read on to know more.
1. Gain a competitive edge in a highly competitive and consolidated market
The Indian paint market is an extremely competitive and highly consolidated sector. There are many paint manufacturers in the country and the number is rising with each passing year. However, just five paint brands account for nearly 70 percent of the total market share. Rest others contend for the remaining 30 percent.
It’s a known fact that the top brands invest heavily in all marketing strategies at their disposal, which also includes channel loyalty programs and influencer loyalty programs. When a new, or established, paint brand runs a well-designed and customized channel loyalty campaign, it gets a massive competitive advantage over its competitors who don’t leverage the loyalty program.
2. Massive scope in a rapidly-growing sector
The paint industry provides huge growth potential and the market for industrial and decorative paints is rapidly growing. As per Fortune Business Insights, the global market size of paints and coatings is projected to reach US$235.06 billion by 2029 from US$167.04 billion in 2022 at a compounded annual growth rate (CAGR) of five percent in the period.
As per Statista, the Indian paint industry is worth more than Rs. 62,000 crores (US$8 billion), and the trade value stood at Rs. 57,000 crores (USD 7.13 billion). As per another study by Mordor Intelligence, the paints and coatings market is estimated to grow at an eight percent CAGR between 2020 and 2025.
A well-designed channel loyalty program offers immense scope for profitability in the rapidly-growing sector. By leveraging an effective channel loyalty program, a paint brand gets immense opportunities to tap into a rapidly growing market.
3. Access to a wide range of expertise and resources
We all know what the right channel partners can bring to the table—their expertise, resources (both financial and non-financial), influence, and more. By running well-designed channel loyalty programs, paint brands can access a wide range of experienced and skillful human resources as well as various other resources such as finance and customer support.
A group of efficient and competent channel sales partners act as an external sales team. But the only difference is instead of a fixed salary, the rewards are linked to their performance. If the incentives and rewards are worth their time and efforts, they will do whatever it takes to deliver their best performance and results.
Reputed distributors and resellers also enjoy a decent following and clout in their respective areas, which enable them to influence the purchasing decisions of their buyers. This can give sufficient leverage to paint brands to sell more of their paint products and tools.
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4. Opportunity to build trust and establish credibility
Did you know that a strong and high-quality channel partner loyalty program can enhance a paint brand’s market credibility by leaps and bounds? When a new or upcoming brand runs a channel loyalty program that’s as effective as the programs of some most successful brands, then the former gets an opportunity to be trusted and respected as the latter.
At present, all leading paint brands invest heavily in channel partner loyalty programs, which work like magic for them. A new, or established, paint brand can gain credibility by implementing an efficient channel partner loyalty program.
Investing in channel partner loyalty programs also incentivizes and motivates channel sales partners to promote a paint brand more.
5.Cost-effective and excellent return on investment
As we are already aware, the cost of acquiring a new distributor or reseller is much higher than retaining an experienced and loyal channel partner. So, it’s not surprising to know that channel partner loyalty programs considerably reduce channel partner acquisition costs. But effective channel loyalty programs can substantially reduce operational costs such as support costs and
Being highly targeted, channel partner loyalty programs save brands a lot of money and give a high return on investment. When done right, an effective and efficient channel partner loyalty program can be extremely cost-effective compared to many other advertising and marketing campaigns and can provide excellent return on investment.
6.Robust relationships with partners
Well, this one is a no-brainer. The very purpose of a channel loyalty program is to make channel sales partners fall in love with a brand and keep them loyal for a long time.
Well-designed and tailored loyalty programs not only retain highly efficient and productive channel sales partners and motivate them to generate more business, but also build enduring relationships that last for several years and decades.
Well-established channel loyalty programs enhance the communication between brands and channel sales partners and also keep the feedback loop open.
The journey of your brand’s paints from your factory to the market can be indeed long without a well-designed channel loyalty program. At LoyaltyXpert, we have crafted high-quality and tailored channel loyalty programs for many reputable paint brands and helped them achieve desired results. If you are looking to run effective channel loyalty programs for your paint business, then contact us to know how we can help you achieve your objectives.