Building Materials
Improving Secondary Sales Visibility and Dealer Engagement in a Fragmented Distribution Network
Building Materials · 10 min read
View Case StudyHow an automotive aftermarket company restructured a flat, stalled loyalty program to restore dealer engagement without increasing incentive spend.
The company operated in a segment where dealers typically worked with multiple brands, often within the same product category. Competition was not just at the product level, but at the engagement level as well.
Each brand had its own incentive programs, communication channels, and reward structures. Dealer engagement was inconsistent. A small group of dealers actively participated in multiple programs, optimizing their effort across brands. A larger group engaged selectively. Some were enrolled but largely inactive.
The company had an existing channel loyalty program, but participation had plateaued. The existing program had three key issues: the structure was flat with all dealers operating under the same earning logic regardless of volume, communication was broad with messages sent to the entire base without differentiation, and operational delays in reward fulfilment had created hesitation among users.
In this environment, dealers prioritize programs that are easiest to interact with and offer the most immediate value. Brand loyalty plays a role, but it is secondary to effort versus return.
The objective was to improve dealer engagement without significantly increasing incentive spend. The approach focused on restructuring the channel loyalty program rather than relaunching it.
Adoption did not change overnight. Field sales teams initially continued focusing on enrolment rather than engagement. This had to be corrected through training and performance tracking.
Over time, dealer engagement stabilized. The distribution of activity became more balanced. High-frequency users continued to perform, but mid-tier users showed improved consistency.
The system moved from a plateau to a more stable pattern of participation. Dealers with very low volumes continued to participate intermittently. In highly competitive regions, engagement still fluctuated based on competing programs. But the program moved from a plateau to stable participation.
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