Imagine a producer of commodity electronic materials who needs to increase its sales. It could direct its loyalty program at a whole host of different audiences, ranging from its direct sales channels - incentivizing the sale of products, complementary sales and recommendations - to specific professions (such as electricians and architects), offering course training, support services and financial incentives to increase recommendations of factory products to their clients.
Companies in the financial sector also battle commoditization so it’s important that they try to differentiate themselves in the eyes of independent financial advisors. Banks and Mutual Funds can adopt product training and industry education-related incentive programs, for example, to incentivize advisors to recommend its services and strengthen product affinity and loyalty. Advisors appreciate the education benefits which, in turn, impacts their ability to provide the best possible advice to - and earn the loyalty of - its clients
Insurance companies, for health, cars, home etc., can retain and stimulate the behavior of brokers and sales representatives to increase their share-of-wallet. This can be done through sales-based bonuses, or sales of specific products, training, number of proposals sent to potential customers and pipeline updating. Brokers work with a diverse range of health insurance brands and end up opting for those which offer the greatest benefits to them based on quantity of sales.
It is important that companies in commodity-centric industries chart each channel's attributes and desired behavior, so it can build an incentive and loyalty program that addresses each and achieves required results.
This blog post was created in partnership with ValueNET, our sister-company which offers specialized consultancy in the loyalty market and uses Fielo technology to create, implement and manage loyalty programs and strategies.