Digital transformation is essential to incorporate into your strategy to stay ahead of the curve. For a long time, channel-led brands have been conducting loyalty programs. But will it be enough to scale and grow in an upwards direction? This article will help you understand how brands can aim for higher sales through digital loyalty programs for contractors.
Digital loyalty programs for contractors might sound like a heavy term but it isn’t. Channel-led brands have been running loyalty programs since inception. But they never thought about the underlying opportunities if they digitalize this process.
According to a report, 40% of contractors prefer purchasing online while 60% op for in-store through distributors. Approximately 90% of contractors want to be rewarded for every purchase (irrespective of the purchasing model).
Is There Really A Thing Called Digital Loyalty Program For Contractors?
Digital transformation is about integrating technology (software, algorithms, and data models) into daily business operations. Brands can now apply the same rule and transition from paper-based to digital loyalty programs for contractors.
Today, companies are interested more than ever in loyalty programs because they can help their marketing departments identify and collect information about their valuable customers and incentivise channel partners to sell their products.
The contractor community comprises hundreds and thousands of small business operators who spend millions of dollars to buy supplies, equipment, and materials to perform their jobs. The complexity lies in understanding their purchasing and consumption patterns.
The primary objective of digital programs for contractors is to create additional value for channel partners and dealers while driving certain behaviours that not only push to-line growth but also decrease the cost to serve.
Advantages Of Digital Loyalty Programs -
What do companies want? They want their sales to skyrocket by spending up to a certain amount on sales and marketing activities. Digital loyalty programs for contractors can be a groundbreaking solution for companies who want to maximise ROI and minimize their operational costs. Other advantages of digital loyalty programs include –
- Create additional touchpoints to establish relationships with brands and their channel partners through emails, SMS, and social media.
- Brands can capture customer data and quickly conduct cross-selling and upselling activities.
- Connect loyalty programs to other systems and existing mobile applications.
- Comprehensive insights to channel partner behaviours.
- A holistic view on loyalty programs.
4 Tips To Consider While Creating Digital Loyalty Program For Contractors -
Having said that, let us guide you through how you can create a scintillating contractor loyalty program. Below are four essential points that work as a hook in digital loyalty programs –
- Define Program’s Objective – Before rolling out a digital loyalty program for contractors, be very specific about the purpose. Whether it is designed to drive sales, engagement, loyalty or drive more participation from channel partners.
- Simple Program for Higher Adoption – Often, contractors opt out of loyalty programs if they are unable to understand or find it too complex. Simple participation steps, proper dissemination of information, vast redemption options, and instant access to reward points along with timely notifications are essential for higher engagement and participation.
- Diverse Benefits – Brands should also offer e-learning, and training opportunities to their contractor community. This will add a shot of confidence among contractors and help them improve their skills and knowledge. As a brand, you need to ensure that all your channel partners train and grow with time. That’s how they will turn loyal and eventually into brand ambassadors.
- Gamify & Engage – Adding a gamification element will motivate your contractors to participate in loyalty schemes more than ever before. The urge to compete and earn more reward points is a win-win. Contractors get to unleash their full potential while brands are able to generate more ROI-part contractors without having to spend considerably.
Time To Shift From Invoice-Based To Invoice-Less Loyalty Programs
If your brand is looking to digitalize loyalty programs for its contractor community, then O4S’s Gnyger is the final destination. With Gynger, brands can create highly personalized schemes and communities directly to their channel partners, and track the overall scheme progress to ensure that rewards reach the right intended beneficiary.
Our solution closes the information and incentivization loop between the brand and channel partners by bringing in a unified platform. Moreover, it provides a data-driven approach to manage, run and scale trade promotions with real-time analytics for performance review.
Gynger allows channel-led businesses to view their trade promotion effectiveness – disbursed rewards, total participation, best-performing schemes, and total sales generated. Businesses have experienced unprecedented growth in their incremental sales with 10 times higher participation along with 80% higher MAU.
