Loyalty Canvas in the Manufacturing Industry

By Anna Sophie Gross Aug 24, 2016

In earlier posts we presented the Loyalty Canvas – a methodology developed to help companies create and plan B2B engagement programs.

Download our handy loyalty canvas kit! It contains an online model with attachable multi-colored post-it notes and expert Fielo guidance on how to go about canvasing your program effectively. 

Today we cover all of the areas of the Loyalty Canvas from a new perspective – the manufacturing industry. The Canvas was developed for a fictional business called ‘Manufacturing Mayhem’, but was based on extensive qualitative and quantitative research carried out by a team of researchers from The HaaS business school in the States, who collaborated with Fielo earlier this year.

Take a look at the Canvas below, followed by a step-by-step run-through of how we filled it out.

  1. Objectives

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:

  • Increase visibility into the channel – because manufacturing is a multi-hop industry many vendors lack an understanding of what their channel partners are up to – how much they’re selling, who to, what works and what doesn’t
  • Increase number of sales, including cross sell and up sell – almost all manufacturers want dealers to utilize shared marketing spend to promote their vendor products over rivals’ as well as push new and existing merchandise more effectively
  1. Members

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.

  1. Behaviors

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 *specific* sales goals
  • Increase cross sell and upsell
  • Register leads, opportunities and deals
  • Register customer information using the CRM
  • Recommend brand products on social media and via testimonials
  • Get to know and test products
  • 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
  1. Rewards

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 trophy rewards. It’s worth thinking about what your company can afford.

For ‘Manufacturing Mayhem’ 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 – these might include company merchandise, vouchers, techy goods etc.
  • Recognition – a portal to recognize and award the best sellers. For example: select sellers for special services and provide badges and certificates to show how much certain professionals know about the subject and the products they sell
  • Experiences – offer special training about products, factory visits for sellers to learn about the process behind the production of the goods they sell, access to dedicated content, lectures and training courses run by experts and specialists.
  • Information – you can trade lead, opportunity and customer information for your own panoramic customer and market insights. This is an important, often overlooked form of currency which is highly valued by channel partners

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.

  1. 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, obtain access to product and marketing resources, 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, while they’re on the move.

  1. Resources

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.

  1. Partners

Which partners could help you reach your objectives, provide resources and/or minimize costs? For ‘Marketing Mayhem’ this might be companies they could team up with to flesh out their award catalog, such as tech companies or holiday-makers.

  1. Costs

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
  1. Revenue

In case there’s some monthly fee or cost to join the program you create, revenue should be listed in this area. In the example we developed for ‘Manufacturing Mayhem’ there wouldn’t be any upfront fees or costs which would generate immediate revenue, but there would most certainly be increased ROI and revenue generated through new partnerships and the strengthening of existing ones as well as access to a wider and more fruitful customer base.

Do you want to see a Loyalty Canvas made especially for your company? Send an e-mail along to annasophie.gross@fielo.com!

Free Download - Channel Loyalty & Incentive Program Canvas