If you are ready to explore certain ways to engage trade influencers in a great way to boost your sales, the trade loyalty program can help you reach globally by engaging with the customers innovatively compared to that of the past years.
Trade loyalty is also known as Channel loyalty which has a channel-driven distribution setup like the wholesalers, retailers, stockiest, influencers, etc) to influence the sales and create brand recognition. This can further create a win-win situation and offer a high value of benefits for both brands and trade influencers by providing different rewards to the influencers.
Generally, the term ‘Trade’ refers to the chain of distributors, wholesalers, retailers, etc who make a certain predefined margin on sales of each product which is commonly the gross profit of the trade partner. This further engages them to take active participation in the trade scheme.
Trade Scheme is an additional offer given as a monetary benefit to the trade partners. The structure of a trade scheme can be around a time period which would range depending from a few days to a year. It involves a few forms that include:
- Flat discount – Reduction in the cost of purchase leading to higher profit per sale.
- Progressive discount – Higher reduction for more purchases made to encourage the partners to sell a huge number of products.
- Free Items – Offering additional products for the actual or same price
- Slab based rewards – It is similar to progressive discount where rewards are earned instead of discount.
- Lucky draw – Very few lucky retailers earn big rewards
The most efficient tool for building a brand in the trade loyalty program is the trade scheme because they attract and encourage the trade partners to make more sales.
Here are the Benefits of a trade loyalty program
- Creating a point of difference
- Increasing customer retention
- Improving NPS
- Giving importance to value-added services
- Gaining valuable insights
- Providing a valid database
Elevatoz’s trade loyalty program is typically designed to increase sales, generate brand loyalty and customer data insights. Besides that, it serves a few more benefits that include
Creating a point of difference
B2B trade customers who are actively engaged in the trade loyalty program are usually big spenders. They create an opportunity to increase their spending and win market share against existing or new competitors. Price and quality are also determined to make an important point of creating a difference by means of a trades reward program.
Increasing customer retention
The major priority is to increase customer retention and keep the trade customers satisfied. Elevatoz’s trade loyalty programs improve customer retention to make the same effect on profits to enhance engaging the customers through various methods like interactions, reactions, and overall customer experience which can further motivate more profitable behavior.
Net Promoter Score (NPS) is a management tool that gauges the loyalty of a firm’s customer relationships. It is one of the most direct ways to measure customer loyalty in order to identify the opportunity for growth, strengths, and weaknesses, to make a strong customer loyalty. By introducing a trade loyalty program, one can earn a better reward for frequent purchases of the trade customers.
Giving importance to value-added services
Adding an extra layer of value to the trade loyalty program can create a compelling point of difference. Trade loyalty program builds your website, promotes your brand or accesses offers besides exclusive benefits to its members. Additional rewards of value-added services can comprise bulk pricing, dedicated team of sales, or machinery rental.
Gaining valuable insights
By utilizing the data that is received from a trade loyalty program, your company will have access to great insights regarding the purchase behavior, time, and frequency of purchases which can be used to communicate in a more meaningful way with all other members.
Providing a valid database
By analyzing the data generated from a trade loyalty program, better communication for your offers and deals can be resonated with members by means of videos, email, and newsletters who are really in need of them.
To summarize, Elevatoz’s trade loyalty program uses the data effectively to assist the companies to help them understand their customers better. This can make them target loyal customers with more tailored and relevant offerings and experiences.
The challenges for trade loyalty programs for both customer acquisition and customer retention are very different. However, effective use of personalized data and customized content can set these businesses apart making them unique from their competitors by providing memorable customer experiences.
Read also the best Loyalty Program for Real-Estate Channel Partner.