The Scope
A global manufacturer in electrical power management & automation systems, needed a strategy to stimulate resellers in their channel to boost their product sales. They wanted to increase the variety, quantity and frequency of orders from their client – the aim being an increase in overall sales revenue. However, their previous cash rebate program wasn't effectively engaging participants.
The Challenge
The client aspired to revitalize their channel loyalty program by driving engagement and augmenting sales revenue. They wanted to radically reimagine their techniques and prioritized the stimulation of different behaviors from their channel resellers. The challenge was to motivate these resellers to not only sell more but also diversify their product sales.
The Solution
HMI (now part of 360insights) worked with the client to create an impactful multi-layered incentive program with the goal of revitalizing reseller engagement. At its core, the program featured a traditional sales incentive component where resellers earned points for each item sold. To further motivate participation, the program included regular promotions offering extra rewards for specific high-priority products.
In addition, resellers could earn points by participating in training modules and answering a weekly question, which not only increased their product knowledge but also encouraged ongoing program engagement. A critical element was the integration of data analytics, which allowed for continuous monitoring and improvement of the program's effectiveness.
The Results
Program participants showed marked increases across several key metrics: they ordered 1.23 times more in quantity, purchased 1.87 times more frequently, and carried 1.82 times more product categories compared to non-participants. Even more impressively, participants generated 6.04 times the revenue of their non-participating counterparts. These results underline the success of the multi-layered incentive strategy, making the client a preferred choice among resellers and solidifying their commitment to channel-focused growth.
