Channel Incentive Program Examples and Applications

channel-incentive program-examplesChannel 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.


01. Understanding Channel management Managing a winning channel incentive program is challenging and requires patience. Find out what the building blocks of a successful program are.
02. Do Channel Incentive Programs Pay Off? Channel Programs help you make the most out of your partnerships. When implemented correctly, Channel Programs can yield lucrative ROIs.
03. Channel Incentive Program Objectives and Applications Any program should start with goals and objectives; they will define your program design and guide you along the way.
04. The Psychology of Incentives and Motivation Designing a program that speaks to participants’ values is crucial. Get to know your audience and what motivates it before designing a program around it.
05. Cash vs. Non-Cash Incentives Cash always seems like an attractive reward. But does it carry the same long-lasting trophy value?
06. Do Channel Incentive Programs Pay Off? Channel Programs help you make the most out of your partnerships. When implemented correctly, Channel Programs can yield lucrative ROIs.
07. Point Program Participant Segments / Personas After enrolling in a program, participants assume different personas. Explore the various persona types.
08. Incentive Program Study and Benchmarks Compare your initiative program with industry benchmarks
09. Incentive Program Performance Indicators A look at channel incentive program KPIs and redemption rates.
10. Channel Incentive Program Best Practices A list of best practices that will aid you in launching and maintaining a successful program.
11. Program Considerations and Conclusions Before embarking on a program take these final considerations into account.
12. Contact Find out how a channel incentive program can help you achieve your company goals.