The document discusses incentive and rewards programs for customer loyalty. It describes how such programs work for both business-to-business (B2B) and business-to-consumer (B2C) models. An example incentive program from Xerox is provided that showed a 55% subscription rate among partners and a 49.7% success rate in increasing purchases of Xerox products after one year. The document advocates for long-term incentive strategies and wide reward catalogs to improve customer and partner loyalty over time.

1. Стимулиращи
програми / награди -
дълго време за
лоялност на
клиентите си
Kosmin LakatushuSofia, 2013

2. Incentive / Rewards
programs - long time
loyalty to your
customers
Cosmin LacatusuSofia, 2013

3. What’s that?
Incentive/ Reward campaigns are multi-week or multi-
month programs offered to companies or individuals
in order to stimulate increase their output.
(C) Create Direct, 2013. All rights reserved.

4. Who needs them?
Mainly: MANUFACTURERS, but not only
(C) Create Direct, 2013. All rights reserved.

5. Who is our target?
- Companies:
- Sales partners
- Brokers
- Shops (ex. Traditional
trade, KA)
- Car Dealers
- Etc.
- Individuals
- People who work on
construction
- Farmers
- etc
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6. B2B Incentive scheme
Manufacturer
Reseller/Retailer Reseller/Retailer
Distributor Distributor Distributor
Sales
force
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7. B2C Incentive scheme
Manufacturer
Reseller/Retailer Reseller/Retailer
Distributor Distributor Distributor
End-user
(C) Create Direct, 2013. All rights reserved.

8. 04/11/138
Incentive... Everybody does it...
• Yesterday incentive:

9. 04/11/139
Incentive... Everybody does it...
• Today incentive:

10. 04/11/1310
We are here:
• There is no long time strategy for channel incentive
• The business partners sale-forces is supra-incentived
by different clients (manufacturers) in order to sell their
products
• Very often clients/manufactures deals with black
money for gifts and they try to find ways to be legal

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Context
And from the winner (partner) side of view:
Incentive/Rewards campaigns
are like weddings

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Context
They always get the same
gifts from different
organizers

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Conclusion:
• Incentive/Rewards campaigns must be done
different:
• Companies need a long time incentive strategy
• Increase the brand and vendor loyalty amongst the channel
partners for a long term (trade campaigns)
• Increase the customers loyalty (loyalty club)
• Prizes – wide range, different areas, with the possibility of
choose by the participant
• Be Legal (all prize budget be deductible, no black money)

14. 14
What you need:
• End to end incentive and loyalty solution:
• Program rules and administration
• Platform registration and approvals
• Points allocation based on the sales / proof of purchase
• Reward catalog managemnt
• Online points redemption from the catalog
• Reward logistic (shipping to the clients, payment of taxes – if
needed, processing the documents etc)
• Full report and dashboard
• Program communication and marketing

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Campaigns benefits
• Motivates client’s partners to sell more - build strong and
lasting relationships with his network of dealers or partners
• Maintain ongoing sales, marketing and promotional dialogue
with partners
• Long time strategy – partner engagement
• Is self-funding. Any variable costs are
covered by client’s ROI.

16. 16
About Rewards Direct – B2B example
B2B
Incentive
example
scheme

17. 17
About Rewards Direct – B2C example
B2C
Incentive
example
scheme

18. 18
Examples per industry
• It&C
• Manufactures rewards the resellers/partners for their acquisitions based on distributors
sell-our reports
• Construction
• Construction companies rewards workers for buying their products. The worker must
sent a proof of purchase (like a pieces of concrete bag, a code inside etc)
• Agriculture
• Cereal treatment producer rewards farmers for buying his products. The farmers must
send as a proof of purchase the invoice
• Banking / financial institutions
• Can reward partners (like brokers) for selling credits/insurance with a percent of the
sales.
• FMCG
• Reward POCs, traditional trade, modern trade etc based on distributors or
direct sell-out reports

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Points grid

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Points grid
• Standard points grid – unchanged for the whole
campaign period
• Each products has a number of points
• All the client’s products (which must be incentive)
will receive points, % of costs of margine
• We suggest that incentive buget to be set between 1-5%
of the product sell-out cost (from our client)

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Prizes

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Reward catalog
• Wide variety of prizes (electronics, home appliances, toys,
jwelery vouchers, travel vouchers etc)

23. 04/11/1323
What do people wish for?

24. What do people wish for?
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Electronics, 53%
Home and
garden, 24.7%
Home appliances,
9.2%
Vouchers, 7.8%
Toys, 4% Optics,
0.3%
Others,
0.9%
Source: Create Direct internal research

25. What kind of electronics?
(C) Create Direct, 2012. All rights
Source: Create Direct internal research

26. When do people order?
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Campaign timeframe
Source: Create Direct internal research

27. When do people order?
(C) Create Direct, 2012. All rights
Source: Create Direct internal research

28. How do people order?
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Redeeam vs. Unredeem points
Source: Create Direct internal research

29. 04/11/1329

30. Take away
What do you need for a successful incentive/reward
campaign:
1.Customer management solution -> a platform used for customer registration,
getting points, tracking
2.Validation solution (based on Sales or proof of purchase)
3.Prize management solution for logistic – prize acquisition, prize shipment, etc
4.Legal support
5.Customer support (infoline inbound and outbound)
6.Wide timeframe – we recommend at least 1 year

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Best case

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Xerox – Xerox Reward

33. Xerox Rewards
• Campaign go live date: 1.04.2012
- Partners invited (approx. 1000 companies)
- Resellers
- Strategic partners

34. Xerox Rewards – after 1 year
•
Subscription rate: 55%
• Success rate (companies which
bought Xerox products): 49.7%
• Increase resellers numeric distribution
• About 3-4 new subscription/day

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Xerox – Xerox Reward

36. 04/11/1336
Xerox – Xerox Reward

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Xerox – Xerox Reward

38. 04/11/1338
Xerox – Xerox Reward

39. 04/11/1339
When did they redeem?

40. What did they prefer?

41. What kind of vouchers?

42. 04/11/13 (C) Create Direct, 2005 42
Questions?

43. 04/11/13 (C) Create Direct, 2005 43
Благодаря!
Cosmin Lacatusu
cosmin@createdirect.ro
A company part of