The Scope
A national lighting manufacturer wanted to revamp their channel incentive strategy to:
- Foster long-term loyalty with distributors and contractors
- Elevate brand awareness
- Gain valuable business insights
As a secondary goal, the manufacturer wanted to create a cohesive user experience that would not only enhance relationships with key partners but also drive sustainable growth and competitiveness in the evolving market landscape.
The Challenge
The manufacturer needed to unify various incentive programs for distributors and contractors. Balancing immediate engagement with long-term loyalty was another crucial part of this challenge. Plus, achieving consistency in brand messaging while gathering actionable insights to inform strategic decisions was a significant hurdle. The complexity of these goals required a comprehensive and carefully coordinated approach.
The Solution
The client previously managed their rewards program internally, which overwhelmed their administrative team and lacked robust reporting capabilities. To streamline and enhance engagement, HMI (now a part of 360insights) transitioned the program from a traditional mail-in claiming method to an automated system. This was achieved through a program website, email, and video communications. The program targeted 930 principals across various channels like distributors, dealers, home centers, and remodelers. Participants earned points for every dollar spent, with accelerated earning rates once sales goals—based on prior year sales—were surpassed. These points could then be redeemed for numerous non-cash rewards. Our program management team supported the initiative with sales tracking, reporting, and data analytics on behavior and sales.
To modernize the program, several strategic changes were implemented, including an updated user experience, branded web experiences, content management capabilities, and integration of new features like training and gamification. Additional improvements included expanded reward options and enhanced customer service. The rebrand utilized a branded website tailored to client needs, video tutorials, full-color print brochures, extensive email campaigns, personalized program letters, and monthly reward statements.
The Results
The transformation of the incentive program led to significant improvements in brand loyalty and engagement. The automated processes and intuitive digital platform facilitated easier participation, resulting in an increase in distributor and contractor involvement.
With enhanced UX and personalized communications, participants found the program appealing and rewarding. The tiered reward system successfully motivated higher sales volumes, directly contributing to increased revenue.
Additionally, the integration of data analytics enabled more strategic decisions, optimizing program offerings and aligning them with market demands. Overall, the revamped incentive program established the manufacturer as a leader in innovation and customer-centric strategies.
