Over the years, the electrical wire and cable industry has been facing a host of challenges ranging from the cyclical nature of the industry, lower barriers to entry, and rising costs, just to name a few.
But in recent times, the sector is witnessing a new type of challenge—a far more dynamic and complicated supply chain. Many cable and wire manufacturers are struggling to take their products to the market.
In such a scenario, the successful ones are implementing innovative strategies and proven solutions to overcome the challenges and cater to the market demand. One such solution includes high-quality channel loyalty programs.
At LoyaltyXpert, we have crafted effective brand loyalty, channel loyalty, and influencer loyalty programs for a wide range of cable and wire manufacturers. This blog post details seven effective channel loyalty programs, which are highly relevant to the cable and wire industry. Read on to gain valuable insights.
1. Sales incentives
Sales incentives are among the most popular incentive programs in the electrical cable and wire industry. These incentives are given to channel partners who achieve or exceed their sales targets. In an article titled “Selling to Electrical Wire and Cable Businesses,” Gaebler.com, a famous website for entrepreneurs, mentioned sales incentives as one of the most effective channel incentives.
Sales incentives are extremely versatile and can help electrical cable and wire businesses meet both short-term and long-term business objectives. They can enhance revenue targets for a specific period as well as build enduring brand loyalty for wire and cable brands.
2. Sales performance incentive funds (SPIFs)
These are incentive-based programs that motivate channel partners to achieve a sales target for a specific product or service in a certain amount of time. Many electrical wire and cable manufacturers use SPIFs to enter new markets, create demand for a particular product, clear stock, and speed up their sales pipeline.
Some best sales performance incentive fund ideas are gift cards, experiences, entertainment, travel, and more such customized non-cash rewards that provide high value to channel partners.
3. Marketing development funds
These incentives are designed to enhance brand awareness. To create awareness in new markets and achieve specific marketing goals, nearly all reputable electrical cable and wire makers provide marketing development funds to channel partners in advance. Channel partners use marketing development funds to purchase ad space, conduct marketing seminars and webinars, take part in trade shows, and perform more such promotional activities.
Even though market development funds are mainly designed to enhance brand awareness, they are extremely effective in building trust between a company and its channel partners. But being pre-initiative incentives, the estimations can go wrong and the outcomes can be uncertain. Despite the shortcomings, many electrical cables and wires manufacturers, such as one of India’s leading companies Polycab, provide marketing development funds to their selected channel partners to expand the market.
4. Co-operative marketing funds
Co-operative marketing funds are percentages of a company’s marketing budget that rewards channel partners when they drive more sales or achieve any other marketing goals. Almost similar to marketing development funds, co-operative marketing funds have one major difference—they’re post-initiative incentives. Channel partners get co-op marketing funds offered only after they complete a specific promotional activity and not in advance.
These incentives are designed to make both manufacturers and channel partners equally invested in the risks and rewards of the business. In the last few years, many leading electrical cable and wire brands have started integrating co-operative marketing funds into their channel incentive programs.
Level up your sales efforts!
Learn how to run data-driven Sales and Marketing campaigns
5. Rebate incentives
Being one of the oldest types of channel incentives, rebates are extremely effective in enhancing order quantities and driving sales volumes of a particular product. Companies usually provide rebates to channel partners in the form of refunds or points or rewards. Apart from boosting the sales volume of a specific product, rebates also help in data collection. Many cable and wire manufacturers use rebates as an effective marketing strategy to motivate channel partners to order more stocks.
But the biggest challenge of rebate incentives is that they can be a little tough to manage efficiently. If not managed properly, they can be complex and costly. Apart from that, they may increase rivalry among various channel partners.
6. Referral incentives
This channel incentive program is extremely prevalent in the cable and wire industry and it works like magic for both the manufacturers and channel partners. Manufacturers provide referral incentives to channel partners when the referrals convert into sales.
When channel partners succeed in referring a brand’s products to more sales partners down the value chain or electricians—the biggest influencers in the cable and wire industry—they are entitled to these incentives. Apart from generating high-quality referrals, these incentives are also given for influencing the buying behavior of end-users.
7. Training incentives
This is one of the most effective and informative channel incentive programs that create a strong association between brands and channel partners. The program aims to educate channel partners about the brands and the various products they are dealing with.
In the electric cable and wire industry safety matters a lot. Channel partners need to know every relevant thing about the products they’re dealing with and their safety features. Training incentives give channel partners the opportunity and motivation to attend training sessions and gain in-depth product knowledge.
In the electrical cable and wire industry, every relationship counts. That’s why cable and wire manufacturers must invest in channel partners and incentive programs to strengthen the bond with their channel partners and keep them loyal for a lifetime.
At LoyaltyXpert, we have years of experience and expertise in crafting effective channel loyalty programs for various cable and wire brands. If you aim to run successful channel loyalty programs, consider LoyaltyXpert. We will tailor effective programs for your channel partners while you focus on what you do best. To know how we can help, Call us today.