In an earlier post we presented the Loyalty Canvas – a methodology developed to help companies create and plan incentive programs.
Today we cover all of the areas of the Loyalty Canvas from a new perspective: this time we’re going to give you some practical guidance, drawing on an incentive program used for an electronics company, targeted at their sales and distribution channels.
The objectives area of the Loyalty Canvas is designed so that companies can define the goals they wish to achieve by using the program. In this case, the main focus is:
- Make sellers committed to the brand – make sales and distributional channels recommend your products and engage with your brand.
- Increase number of sales – when participants are more engaged they increase quantity of sales and generate customer loyalty, increasing revenue for the company.
Which audiences do you want the program to incentivize and engage? For whom is it being made? The members involved in this example all work in partnership with the company, that’s to say, Value-added resellers, on location sales teams and distribution channels.
In order to achieve your objectives, it’s essential to know which exact behaviors you want to incentivize from your members. We cite some behaviors on the Loyalty Canvas, but these are only a few of a whole host of possible responses.
- Reach sales goals
- Register deals
- Recommend brand products
- Get to know and test products
- Use merchandizing material correctly, such as pamphlets, folders, materials, etc
- Attend training, courses and workshops
- Fill out requests and sales follow-ups correctly
- Present products nicely in windows and on shop floors
- Offer excellent customer service, including follow-up calls and available helplines
What rewards does your loyalty or incentive program provide? What value do they offer and how relevant are they to target audiences?
It’s important to select rewards that are related in some way to desired behaviors and which suit the profile of the target recipient. There’s some debate in the market about whether cash prizes should be used. While, when surveyed, partners themselves invariably say they prefer cash, other research has shown that channels respond well to personal recognition and novelty. It’s worth thinking about what your company can afford.
In the case of the electronics company at hand, we’ve selected the following rewards:
- Awards catalog – an awards portal for winners, offering a variety of products and different ways for accumulated points to be banked.
- Recognition – a portal to recognize and award the best sellers. For example: select sellers for special services, show how much certain professionals know about the subject and the products they sell (with badges, certificates).
- Experiences – offer special training about products, factory visits for sellers to learn about the process behind the production of the electronics they sell, access to dedicated content, lectures and training courses run by experts and specialists.
The Fielo platform enables you to establish rankings, control points and apply concepts of gamification, engaging sales teams in competitions between themselves and other sales channels.
You need to define the most appropriate channels through which to communicate with participants. In this case, the idea is to develop a portal where all registered sellers can gain access to the rules of the incentive program, track their performance and claim rewards. The portal enables participants to visualize winner categories and what criteria they’ve met, as well as their evolution and points history.
It’s also useful to develop an app so that participants of the program can access information through their mobile devices, such as tablets and smart phones.
The portal and app would be listed in this area of the Loyalty Canvas as they are resources which need to be developed and will generate costs.
Which partners could help you reach your objectives, provide resources and/or minimize costs? In the example we’re covering today this field doesn’t apply, but it’s important to analyze correctly your company’s business profile because this could be an area of great strategic importance for a number of different sectors.
What are the costs involved in the operation and maintenance of the incentive program? In this example:
- Awards – all costs involved in acquiring awards, whatever those may be
- Program operation – investing in a team of specialists and a technological solution, or a company responsible for the creation, operation and maintenance of the incentive program
- Developing an app
This area doesn’t apply to the example we’re looking at today. That’s not to say that your company shouldn’t pay careful attention to this area. In case there’s some monthly fee or cost to join the program you create, revenue should be listed in this area.
Do you want to see a Loyalty Canvas made especially for your company and segment? Leave a suggestion in the comments or send us an e-mail!
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