Over the last few years, the competition in the traditional manufacturing space has become intense. Traditional manufacturers such as paint makers, PVC producers, as well as chemical and laminate manufacturers have started leveraging a wide range of marketing techniques to gain a competitive advantage and remain ahead of the curve.
Channel loyalty, brand loyalty, and influencer loyalty programs have emerged as some of the most effective B2B marketing techniques. But when it comes to getting products to the market, channel loyalty programs prove to be immensely valuable as successful traditional manufacturers can’t do without their loyal channel sales partners.
At LoyaltyXpert, we have created effective and successful channel loyalty programs for a wide range of traditional manufacturers across industries and helped them forge strong relationships with their channel sales partners. In this blog post, we discuss how traditional manufacturers can gain a competitive advantage using channel loyalty programs and what they need to do to compete effectively.
How channel loyalty programs enhance the competitiveness of traditional manufacturers?
When it comes to using effective channel loyalty programs, some manufacturing businesses get it right and gain a massive competitive edge over their counterparts in the same industry. Here are some ways channel loyalty programs enhance their competitiveness.
1. Create strong relationships with channel partners
The relationship between traditional manufacturers and their channel sales partners is extremely important as it can mean the difference between success and failure. If a manufacturing firm has an excellent relationship with its channel partners, then the latter will do everything they can to help the former succeed and get positive business outcomes. Here’s where channel loyalty programs can do wonders. Well-designed and high-quality channel loyalty programs create robust and longstanding relationships between traditional manufacturers and channel partners.
2. Generate positive word-of-mouth publicity
When channel sales partners are delighted with a manufacturing firm, then they spread the word about the business and their experiences. This generates massive positive word-of-mouth publicity and creates a favorable image of the business. Channel loyalty programs are also extremely useful in generating strong buzz and excitement about an upcoming product or service.
3. Increase the brand exposure and brand value
When a manufacturing company has higher brand exposure and brand value than its competitors, then it is more likely to be in the minds of end customers. It is not surprising to see how some brands became synonymous with the products they sold. For instance, the Fevicol brand name became synonymous with white adhesives and is a household name in India. Likewise, the Sunmica brand became a generic name for laminates. Many such traditional brands have attained iconic status not just because of their high-quality products but also due to their relationships with their channel sales partners.
4. Enhance customer experiences
When channel partners are highly motivated and suitably rewarded, they do whatever it takes to serve their buyers with utmost sincerity. This creates an extraordinary trickle-down effect and passes the benefits to retailers and end consumers. Apart from motivating the channel partners, channel loyalty programs do delight customers and enhance their brand experiences. This is one of the major competitive advantages for manufacturers who use advanced channel loyalty programs.
5. Provide high ROI
Being highly targeted and strategic, channel loyalty programs are extremely cost-effective and provide high returns on investments to manufacturing companies. As per one recent stat, channel loyalty programs provide an estimated average return on investment of 400 percent.
Some effective channel loyalty rewards and incentives for traditional manufacturers
Traditional manufacturers can create effective and competitive channel loyalty programs for their channel sales partners by using the following rewards and incentives:
1. Achievement-based incentives
Achievement-based incentives match individual achievements with the rewards. The achievements can range from sales volume, product type, margins, and monthly, quarterly or yearly targets. This will motivate channel partners to sell products more effectively and reach higher achievement levels.
2. Activity-based incentives
Traditional manufacturers can leverage activity-based incentives to reward their channel partners for some specific activities. The value-added activities can range from filling out surveys and participating in studies to sharing brand promotion materials on social networks and check-ins. The channel partners who can perform or manage certain activities will qualify for the rewards and will encourage more sales partners to follow suit.
3. Referral incentives
As per a study, eight in every ten customers trust referred or suggested products more than non-referred ones. This makes referral incentives extremely attractive and practical for channel sales partners. In referral incentives, channel partners will receive rewards and incentives when they recommend your products to customers. This type of incentive is extremely useful for traditional manufacturers as they get to sell their products more quickly.
4. Personalized and tailored loyalty programs
While creating a channel loyalty program, keep in mind that the rewards and incentives are relevant to and useful for the channel partners. To ensure that, find out what they like and value and create the rewards as per that. Use a mix of cash and non-cash rewards to craft customized and attractive loyalty programs.
5. Incentivized training and learning programs
Channel partner training is a must for traditional manufacturers, especially who deal with several types of channel partners. The latter must learn everything about the brands they are dealing with as well as the products and services. This incentive will encourage channel partners to participate in training, quizzes, seminars, webinars, and product videos.
6. Tier and point-based rewards
In this, manufacturing businesses can introduce various tiers for their channel sales partners and categorize them as per their performance. The top-performing sales partners will have the best points, which will place them in the highest tier. This will motivate others to achieve better results and move up the tiers.
7. Trade shows and conferences
Manufacturers can organize tradeshows and conferences for their channel sales partners and felicitate them as per their performance. This will enable a wide range of channel sales partners to come under one roof and will provide them with an excellent opportunity to network. It will also enhance their motivation and loyalty to your brand.
All in all,
When it comes to staying ahead of the competition in the highly competitive age, traditional manufacturers who deal with several types of channel partners must consider using innovative and sophisticated channel loyalty programs. At LoyaltyXpert, we have created high-quality and effective channel loyalty programs for all kinds of manufacturing firms. If you are interested to create a successful channel loyalty program, contact us today.