Channel Incentive Program Application Examples

Channel incentive programs are tactical tools for achieving measurable business results that deliver on strategic business initiatives. These case studies illustrate how Loyaltyworks' clients are using incentive programs to drive volume, capture market share, promote cross-selling, insure profitable transactions, develop end-user relationships, conduct sophisticated customer relationship management activities and build their businesses.

Driving Volume


Most incentive programs drive volume and direct the purchase of specific products. A manufacturer of home building products has effectively used a points program to move the “Good-Better-Best” paradigm to “Better-Best-Premium” for 2,000 contractors driving year-over-year volume gains since 2001.

Shaping Product Mix


One manufacturer drives volume for 35 distinct products by awarding points for sales and repeat business among 2,000 resellers. Resellers earn different point awards based on product profitability. In the same vein, we designed a program for a buiding contruction products manufacturer reaching 700 contractors that awards points only after certain volume levels are met. The program, which is annually adjusted and retargeted, features point values pegged to purchases of two or more product categories with higher point values assigned to the most profitable product bundles.

Building Market Share


A brand name national insurer enrolled 1,300 “platinum” certified local agencies into an incentive program. Participating agents who preferentially recommend their brand to clients that meet the insurer’s specific profile criteria receive points towards travel and merchandise. The program has driven seven consecutive years of increased market share.

Insuring Profitable Volume


A global manufacturer of electrical controls and automation equipment motivates technicians to identify, select and zero in on highly profitable jobs by creating a three-tiered filtering system before awarding points. The program, with1,400 participants, has significantly increased penetration in key sectors and driven major improvements in profitability over the past 4 years.

Educating Partner Salespeople


A leading chemical manufacturer enrolled 1,700 partner sales reps to drive volume and increase product awareness and knowledge. Sales reps receive points for reading product literature, taking online product quizzes, completing product and customer surveys and selling specific products.

Dominating a Sector & Integrating with CRM


A global chemical manufacturer incorporated incentive programming into an overarching CRM program to collect and analyze data sufficient to dominate a desirable market segment. Using customer data and purchase histories, they customize and personalize incentive offers to 9,000 technicians who make decisions about product purchases and purchase frequency.

Identifying End-Users


Anxious about the willingness of distributors to share data and engage in co-promotions, this North American apparel manufacturer uses an incentive program to motivate 1,100 end users to identify themselves, connect with the brand and drive repeat purchases. As distributor invoices are sent in to claim points, the manufacturer frequently enjoys an intelligence windfall, leading to a better understanding of distributor behavior, competitors’ share of market, product movement and pricing.