Neither the retail consumer electronics sales floor nor any VAR channel are for the meek — particularly if you are a global brand competing in an increasingly commodity-driven market. An industry leader sought a way to build loyalty and become top of mind with the far end of the sales chain, the retail channel sales representative. In the process, it learned that program execution makes for the strongest link.

From an outsider's perspective, our client is in an enviable position in the $140 billion consumer electronics space. Most analysts believe that the company holds the dominant position in America's living rooms, with tremendously strong brand identity. Their insights into consumer buying behavior and expectations are unparalleled.

But they operate in a commodity-driven market. New products offer relatively incremental feature and capability changes. The drop in real prices for a given product type can induce vertigo. Camcorders that only a few years ago sold for over $1,000 today can be purchased for under $400. And consumer electronics markets tend to maintain compatibility for long periods of time. A TV bought 10, or even 20, years ago can still receive a modern TV broadcast.

Enter the non-employee, indirect channel sales person. He's the last stop in the client's sales channel and the greatest and final influence on a purchasing decision. And "if" they can capture his loyalty, they can thrive. But the big if was execution. Its long-standing channel incentive program was no longer capturing the loyalty of these important customer-facing sales people because instead of focusing on strategy and continuous enhancements, energy and resources were diverted to solving operational problems. Working with SHC Direct, they recognized that execution was the place to start. Rather than a program that offered the right rewards and ease to both earn and redeem, their existing program frustrated participants.

Sales reps were waiting too long for their rewards. And they got bad information from program customer service representatives. Internally, they had their own operational frustrations with the vendor, including inconsistent performance and customer service to the program owners; inflexibility with invoicing and processes; and, perhaps most annoying—little, if any, forward thinking about the program.

SHC Direct took the opportunity to redefine the essentials for success from two perspectives: the sales rep and our new client. The overarching essential was to create a fresh start for channel loyalty, with a new identity that improved perceptions among all stakeholders. The new identity focused on speed and precision, effectively making it all about execution. It also introduced a new prepaid reward card as the vehicle for redeeming rewards, which generates higher credibility and a stronger sense of loyalty by having the opportunity to grow a reward balance on the card. With that prepaid reward card in the wallets of the on-floor sales people, it also serves as a reminder and acknowledgement of the brand.

The sales rep essentials were a back-to-basics approach. SHC Direct focused on the most critical issue: expediting claim processing and reward issuance. To do this, SHC Direct developed a strategic workflow and deposit model that would consistently deliver rewards faster—multiple payment cycles per week—without sacrificing the integrity of the program or increasing the potential for fraud. The company also committed to excellent customer service; SHC Direct enabled that with an online administrative tool created specifically to provide knowledgeable, integrated support about the program to SHC Direct's 24 x 7 x 365 customer call center.

With better access to more information, previously disgruntled dealer salespeople no longer taxed the client's sales management and regional sales representatives with problems and minutia, enabling them to concentrate on introducing new products into the field.

As a client, they could expect its own set of essentials in program management anchored in SHC Direct's commitment of experienced proactive professionals working to anticipate program needs and provide strategic insight. Also essential for them was real-time program performance communication in a meaningful and usable format. Through a customized program portal on SHC Direct's exclusive InfoStation data repository and management tool, program managers had data and results in their hands rapidly.

To execute, however, required a seamless transition from both the incumbent vendor and the existing program. Incorporating detailed transition recommendations building on a case study of another large transition, they benefitted from an SHC Direct program management team that had already accomplished similar transitions for previous clients.

SHC Direct understands the loyalty and incentive hurdles facing channel resellers. We helped our client create goodwill and instill advocacy on the retail sales floor through a program that identifies the best supporters of its brand, recognizes them, and provides continuous reinforcement.