6 Digital Incentive Programs that Work Like Magic for Laminate Businesses
Changing the Marketing Environment in an effort to engage their channel partners and strengthen to loyalty of them
From lumber mills to manufacturing facilities to distributors’ warehouses and retail stores, every plywood and laminate has to undergo a long journey before making its way into end-users houses.
That’s why plywood and laminate manufacturers must create long-lasting relationships with channel partners so that their products not only add a welcoming feel and a sense of style in customers’ homes and workspaces but also command excellent brand value and respect in the market.
At LoyaltyXpert, we not only have created channel loyalty programs for many plywood and laminate companies but also helped them forge strong relationships with their influencers and end-users by creating effective influencer loyalty programs and customer loyalty programs for them.
In this blog post, we have discussed seven highly effective digital incentive programs that businesses in the plywood and laminate industry can leverage to create strong bonds with their channel partners and retain their loyalty for a long time. Read on and thank us later.
1. Inventory-based incentives
Distribution channels within the plywood and laminate industry always need to maintain optimum levels of inventory to ensure a smooth flow of products into the market. To incentivize channel partners to stock adequate volumes of inventory, plywood and laminate manufacturers provide various stock-based incentives for efficient inventory management.
Some of the most popular inventory-based channel incentives are channel rebates and discounts, which many leading plywood brands provide to their channel partners based on their size or frequency of orders. Dealers and distributors who order in bulk quantities are eligible for these incentives.
2. Sales incentives and SPIFs
Sales incentives are among the most widely used channel reward programs for the plywood and laminate industry. Using these, laminate manufacturers reward channel partners when they achieve or surpass specific sales targets. All laminate manufacturers ranging from AICA Sunmica, CenturyPly, Formica Greenply, and Merino Laminates use sales incentives to drive short-term revenue targets as well as to build long-term loyalty.
Likewise, SPIFs (sales performance incentive funds) are channel incentive programs that motivate channel partners to sell particular products in a specific amount of time or carry out a specific activity. Apart from driving demand and sales for a specific product, many plywood and laminate manufacturers use sales performance incentive funds to accelerate their sales pipeline as well as enter new markets.
3. Business summits and international trips
Business summits are among the most effective channel incentives that bring all channel partners under one roof, give them a memorable experience of a lifetime, and create a strong brand connection. Purbanchal Laminates Pvt. Ltd, the maker of Amulya Mica, is an excellent example of how laminate companies can leverage business summits to engage channel partners and create lasting relationships with them.
In June 2019, the manufacturer of plywood, decorative laminates, and WPC and PVC boards organized its All India Channel Partners’ Business Summit in Delhi for more than 475 dealers and distributors and took over 250 qualifiers in the 2018-19 annual incentive schemes to an international tour to Moscow. The company announced an enticing and rewarding spot-booking scheme for all products and offered attractive discounts to its dealers. At the summit, the company also gave 21 mega prize draws, which ranged from five grams of gold to a best-selling car.
4. Partner retention loyalty incentives
Some channel partners are extremely competent and skilled, which makes them highly sought after. Plywood and laminate companies dealing with such channel partners don’t need to provide them with any additional incentives for encouragement and motivation but to show gratitude for their unwavering loyalty and retain them for a long time.
Many laminate companies, such as Merino India, leverage this channel incentive program to make their channel partners stick with them. In its 2018-19 annual report, Merino India revealed that nearly seven out of every ten of its channel partners have been with the company for at least five years. It also highlighted the ways it celebrated the entrepreneurial spirit of its channel partners and strengthened relationships with them. The company also detailed how its various channel partners played a critical role in enhancing its business performance.
5. Market development funds and cooperative funding
Both market development funds (MDFs) and cooperative funding are provided to channel partners for marketing purposes. The main difference between the two is the former is given as an advance payment, while the latter is provided as a reimbursement for organized marketing activities.
When it comes to risks associated, the latter is less risky compared to the former. In MDFs, the results can be uncertain and the estimations can go wrong. But in co-op funding, both manufacturers and channel partners are invested in the risks equally. Many reputable plywood and laminate manufacturers use either of these incentives to their channel partners for various marketing initiatives.
6. Enablement and training incentives
Let’s face it; channel partner training is not easy. In the plywood and laminate industry, every channel partner must be given relevant product and sales training so that they can keep up with a company’s sales goals and cater to market demands. To make channel partners proficient and provide them with in-depth product and marketing knowledge, training incentives are extremely effective.
Companies in the plywood and laminate industry can take a leaf out of CenturyPly’s book. The company launched an elite club of channel partners—named Club One—where the company takes its members to international locations for training and educational purposes. The training incentives allow the company to provide in-depth product information and knowledge to its channel partners as well as enhance loyalty.
With the evolving marketing landscape, plywood and laminate manufacturers are adopting multipronged Digital incentive schemes to engage their channel partners and reinforce their loyalty.
At LoyaltyXpert, we have the right experience and expertise in crafting effective channel loyalty programs for all sizes of plywood and laminate manufacturers. Many of our clients enjoy strong bonds and steadfast loyalty not just from their channel partners but also from end-users and influencers. If you intend to run successful channel loyalty programs, request a demo today.
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