Partner loyalty scheme produces 60% growth in 3 months
The global electronic goods distributor eSys Technologies says that its recently launched partner loyalty programme, ePaL, has resulted in a 60% increase in business during its first quarter (ending in June 2005).
eSys Technologies launched the programme for its channel partners in the Middle East and North African markets. It is based on a simple "points for business" system, with rewards including mobile phones, PDAs, laptops, iPods, cameras and 42 inch plasma screens to be won by the ePaLs.
Quarterly redemption The programme matches business targets to points achieved, which can then be redeemed at the end of each quarter for rewards. For every US$10,000 worth of business with eSys, the ePaL's account will be credited with one reward point. This means in effect that business worth, say, US$400,000 would earn 40 points.
Even if the points have been redeemed, the ePaL will be awarded ten percent of the accumulated reward points earned in the quarter as loyalty bonus for the next quarter. There is, however a Minimum Qualifying Criterion (MQC) for each quarter, which must be met in order to redeem rewards. The MQC differs depending on on-the-ground realities in the various markets that make up the Middle East and North Africa region; it can be as low as US$50,000 or as high as US$1.5 million.
Sharing success Once eligible for redemption, the Reward points must be used within 90 days of the end of the respective quarter. If the MQC is not achieved, then even though the ePaL is not entitled to redeem the points, 50% of the accumulated points will be carried forward to the next quarter.
According to Pavan Gupta, General Manager of eSys Technologies: "eSys is focused on partner packages customised to each partner's needs. ePaL has been created as a means of sharing our success with long term partners, and we look forward to continued loyalty from our partners and in the process to further develop the programme with the help of their feedback and suggestions."