The HVAC industry is on the rise. Consulting-Specifying Engineer magazine projects that the global HVAC market will exceed $139 billion by 2018, a growth of almost 9% compared to the current rate. What does that mean for you, as an HVAC manufacturer? It means new territories, new opportunities, and new relationships. The time to plan your approach to industry expansion is now, while the market forecast is very positive. One of the ways you can extend your brand marketing and influence is with an incentive reward program that is capable of acting as both a marketing and customer retention tool.
New Territories and New Opportunities in the HVAC Industry
Which territories are experiencing growing HVAC needs?
Developing countries with growing budgets are expected to experience increasing need for HVAC systems in the near future. These territories will most likely be countries like China and India, due to their reliable energy sources and increasing income levels. Increased spending and more complex utility grids in developing countries like Indonesia and Brazil also factor into rising air conditioning needs in these tropical regions, where cooling systems are a year-round necessity. Recovering housing markets and rising consumer confidence levels are also expected to bolster HVAC needs in Western areas like Europe and the U.S.
How can sales channel incentive programs help?
If you’re a U.S. HVAC manufacturer, how can you address consumer needs in areas all over the world? By expanding your marketing and customer relationship tactics. One of the best customer connection tools you can utilize is a sales channel incentive program. Incentive companies like Loyaltyworks offer these types of online rewards programs that meet the specific needs of manufacturers with sales channel networks. With an incentive program targeted toward supply chain management, you can improve relationships with customers of any kind, including business-to-business (B2B) partners like distributors, dealers, contractors, and end-consumers.
With their á la carte approach, Loyaltyworks offers various incentive program modules with different features and capabilities. The Open Enrollment module is one of the most useful for channel sales incentive programs, because it removes obstacles to program registration. Typically, program users need to be invited to join incentive programs. When enrollment is open, however, anyone—including those outside your company or region—can register. This means that if one of your distributors has fostered a relationship with an overseas contractor, for example, that contractor can join your incentive program and begin receiving rewards for selling your products.
And, by offering virtual debit cards as a reward, international users can make purchases from their local stores, avoiding cumbersome overseas shipping charges and wait times.
Features like the Loyaltyworks Performance Tracking module also help you manage the sales promotions you run for your sales channel partners. The best challenges to give your business partners are specific ones, so they feel they can achieve your goals. When you reward them points for excelling at incentive program objectives, your business partners can exchange those points for items in Loyaltyworks’ extensive, diverse rewards catalog. These non-cash rewards have more value to program participants than cash compensation because they are tangible, lasting, and create positive attachment. Showing off a new cutlery set to dinner guests purchased with reward points or sharing Instagram photos of an incentive travel trip create memories and emotions. Cash rewards, on the other hand, are usually seen as merely “extra salary.”
To be prepared for the incoming needs and new territories in the HVAC industry’s future, you’ll need effective ways to retain customers and improve B2B marketing. With a sales channel incentive program, you can market your brand to new channel partners and thank current partners for helping you achieve sales goals. The stronger your relationships with buyers are, the more likely your brand will expand with the growing global HVAC market.