An effective rewards program can help you get the most out of your distributors network. Your dealer partners or distributors may be working with your competitors as well. But how do you ensure that they pay special attention to your brand? It is possible by running a good distributor rewards program. If they are rewarded for selling your products, they will focus more on your business than others.
However, for this, you need to ensure that your rewards program is good enough to engage and motivate your distributor partners. It doesn’t make any sense if you are investing a large amount on a distributor rewards program, which is not performing well. Therefore, it is essential to track the success of the program from time to time.
In this article, we will be talking about some key metrics that you can use to track the success of your distributor rewards program:
1. Purchase Frequency
This is one of the main factors that you can consider when analyzing the performance of any rewards program. See if there has been any increase in the purchase frequency of your distributor partners. If they are really encouraged with your rewards program, they will sell out products faster and purchase from your more often. If there is no change in their purchase frequency, maybe you need to relook at your reward program’s strategy.
2. Average Order Value
AOV (Average Order Value) is another key metric that you can use to measure the effectiveness of your distributor rewards program. See if the average order value of your distributor partners has increased or not.
Compare the AOVs before and after implementing the program. If the value has increased, that’s great and it means that your program is effective. If there is no change in the average order value, maybe there is something wrong that you need to work on.
3. Participation Rate
The participation rate helps you understand whether the distributors are interested in the rewards program or not. If they are not interested in it, they won’t participate, and it will not benefit your business to a large extent. Therefore, it is important to consider the needs and preferences of your distributor partners when designing a loyalty or rewards program. If the participation rate is good enough, it is a good sign for the success of your distributor rewards program.
4. Rewards Redemption Rate
Maybe your distributor partners signed up for the program but are not actively engaged with it due to lack of interest. How would you know that? You can check the reward redemption rate for this.
If most of your distributors who participated in the program are not actively redeeming rewards, it is possible that they are no longer interested in it. If the reward redemption rate is good, your program is most likely working well. If not, you must relook into it and try to align the rewards with the distributors’ interests.
5. Overall Sales & Revenue
Last but not least, the sales and revenue you are generating from your distributor partners is also a key factor to track the success of your rewards program. Compare your overall sales and revenue before and after implementing the distributor rewards program. An increase in sales means your program is effective.
Designing a Successful Distributor Rewards Program
If you are running any loyalty rewards program, tracking its performance is essential. The same goes for distributor rewards programs as well. To ensure its success, you need to regularly measure its effectiveness and make improvements accordingly. The above-listed metrics can help you whether your distributor rewards program is effective enough or not. What if it’s still not working after all your effort?
In such a situation, you can consider partnering with a rewards company like RewardPort. Having years of experience in managing thousands of programs, companies like RewardPort can help you make the most out of your distributor rewards program. They first analyze your business objectives and your distributors’ preferences to create a program that perfectly aligns with your goals.
A good rewards program can help you reach the top of your industry, but only if it is engaging enough for your target customers, i.e. distributor partners. So, make sure that you choose the right program and track its success regularly.